CITIC Construction Investment Securities released the 2027 Securities Industry Investment Strategy Report, stating that in the first three quarters of 2026, 42 listed brokers' revenue was 497.90 billion yuan, up 18.7% year on year, net profit to mother was 209.22 billion yuan, up 23.76% year on year, and ROE rose to 7.9%. The decline in profit in the third quarter was mainly due to fluctuations in directional exposure to self-employment, which showed allocative transformation and resiliency in asset-light businesses. Sectors PB1.08x and dynamic PE9.86x are at a historically low level. Looking ahead to 2027, self-employment allocation, wealth management, and diversification of overseas operations will improve the profit structure, and provide catalysts for medium- and long-term capital entry into the market. It is recommended to follow the dual main line layout of head concentration and high flexibility.

CITIC Construction Investment Securities released the 2027 Securities Industry Investment Strategy Report, stating that in the first three quarters of 2026, 42 listed brokers' revenue was 497.90 billion yuan, up 18.7% year on year, net profit to mother was 209.22 billion yuan, up 23.76% year on year, and ROE rose to 7.9%. The decline in profit in the third quarter was mainly due to fluctuations in directional exposure to self-employment, which showed allocative transformation and resiliency in asset-light businesses. Sectors PB1.08x and dynamic PE9.86x are at a historically low level. Looking ahead to 2027, self-employment allocation, wealth management, and diversification of overseas operations will improve the profit structure, and provide catalysts for medium- and long-term capital entry into the market. It is recommended to follow the dual main line layout of head concentration and high flexibility.