Key Takeaways:
Guotai Haitong Securities (2611.HK) reported a 73.43% surge in its first-quarter non-GAAP net profit to ¥5.711 billion, driven by a significant jump in brokerage and interest income following its recent mega-merger.
"Through this consolidation, the two alternative investment subsidiaries will achieve integrated allocation of investment research capabilities, project resources, and compliance and risk control," a company representative said regarding the restructuring.
The firm’s revenue for the first three months of 2026 grew 58.91% to ¥16.232 billion. Brokerage fee income rose 78.23% to ¥4.727 billion, while net interest income increased by 153.74% to ¥1.760 billion, which the company attributed to larger financing and securities lending operations.
The results are the first clear look at the brokerage’s underlying performance, excluding one-off accounting effects from its 2025 merger with Haitong Securities. The ongoing integration of subsidiaries is a key step toward realizing cost synergies and is being closely watched by investors.
While the core business showed robust growth, the company’s GAAP net profit attributable to shareholders declined 47.82% to ¥6.388 billion. The company stated this was due to a high base for comparison created by a large one-time gain from the merger with Haitong Securities in the first quarter of 2025.
Guotai Haitong also announced it is accelerating the integration of its subsidiaries. The firm’s board approved a plan for its alternative investment subsidiary, Haitong Innovation, to absorb Guojun Zhengyu. The merged entity will be renamed Guotai Haitong Zhengyu Investment Co., Ltd.
Separately, its private equity arm, Haitong Kaiyuan, will take control of Guojun Innovation Investment through an equity transfer. Haitong Kaiyuan will then be renamed Guotai Haitong Kaiyuan Investment Co., Ltd.
The moves follow the merger of the company's asset management and futures subsidiaries and signal a clear strategy to consolidate operations, reduce costs, and create a more unified structure following the 2025 mega-merger.
The company also announced the appointment of Xu Lan as the new Board Secretary.
The strong underlying profit growth and strategic restructuring signal management's focus on improving efficiency and profitability. Investors will be watching the progress of the subsidiary integrations for evidence of successful execution and synergy realization in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
