Industrial Securities (601377 CH) Buy: Earnings hinge on equity market performance

Research evidence excerpt

Industrial Securities (601377 CH) Buy: Earnings hinge on equity market performance

10 July 2026

Equity Research Report

Industrial Securities EquitiesDiversified Financial Srvcs

(601377 CH)

Buy: Earnings hinge on equity market performance China

◆ Proprietary trading and brokerage businesses still key MAINTAIN BUY

earnings growth drivers

TARGET PRICE (CNY) PREVIOUS TARGET (CNY)

◆ We cut 2026-27 net profit estimates by 18-19%, and

8.50 9.20 introduce our 2028 estimates

◆ Maintain Buy; lower TP to RMB8.50 from RMB9.20 SHARE PRICE (CNY) UPSIDE/DOWNSIDE

6.13 +38.7%

Rapid main business revenue growth likely to support a further re-rating. INDS’ （as of 09 Jul 2026）

share price has risen 2.2% (vs CITIC Broker Index up 6.2%) in the past 60 trading MARKET DATA

days. The slight underperformance could be attributed to what we highlighted previously, Market cap (CNYm) 52,939 Free float 13%

Market cap (USDm) 7,781 BBG 601377 CH

namely INDS’ slower earnings growth amid A-share market volatility which may hurt 3m ADTV (USDm) 93 RIC 601377.SS

investment gains from its proprietary investment team and its subsidiary Aegon-Industrial FINANCIALS AND RATIOS (CNY)

Fund. The stock is trading at 0.82x 2026e PB, 1 SD below its historical average, and Year to 12/2025a 12/2026e 12/2027e 12/2028e

HSBC QH EPS 0.33 0.38 0.43 0.48

we see the valuation attractive. INDS is able to achieve better-than-peers main business HSBC QH EPS prev 0.41 0.46 0.52 na

revenue growth amid a well-performing market, which could support a further re-rating. Change (%) -19.5 -18.8 -17.7 na Consensus EPS 0.35 0.41 0.46 0.49

Catalysts include: (1) increasing A-share market turnover which could likely boost PE (x) 18.4 16.3 14.4 12.7

Dividend yield (%) 2.4 2.8 3.1 3.6