In-Depth Investment Value Analysis Report of Tonghuashun (300033.SZ)

Based on the above in-depth analysis, I now present to you the complete investment research report:

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The 2025 annual performance forecast released by Tonghuashun shows that the company expects to achieve a net profit of RMB 2.735-3.282 billion, a year-on-year increase of 50%-80%. This better-than-expected growth is mainly driven by the dual boost of improved capital market activity and in-depth integration of AI technology applications[1]. Looking at the first three quarters of 2025, the company achieved operating revenue of RMB 3.261 billion, a year-on-year increase of 39.67%; net profit attributable to shareholders was RMB 1.206 billion, a year-on-year increase of 85.29%, with the Q3 single-quarter net profit growing as high as 144.5% year-on-year[2]. The company’s contract liabilities reached RMB 2.519 billion, a 113% year-on-year increase, a strong leading indicator that signals the expected continuation of robust order momentum[2].

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The market size of China’s internet financial information services industry grew from RMB 10.07 billion in 2015 to RMB 63.52 billion in 2024, with a compound annual growth rate (CAGR) of 22.71%[3]. As China’s securities market enters a period of rapid development, the industry is facing a golden development opportunity. Benefiting from the continuous growth of residents’ wealth and the increasing demand for financial information from investors, the market capacity will continue to expand.

2025 is known in the industry as the “first year of large-scale implementation of large models”, and the financial industry is undergoing profound intelligent transformation[4]. According to the 2025 Financial Industry Large Model Application Report jointly released by KPMG and Tencent Research Institute, nearly half of global financial institutions have launched large model application construction, and the industry is transitioning from the sporadic trial phase to large-scale deployment. In 2025, procurement of financial large models surged 527%, and AI applications have evolved from efficiency tools to collaborative partners; applications represented by intelligent agents are restructuring the form of human-machine collaboration[4].

The People’s Bank of China has clearly required accelerating the digital and intelligent transformation of finance, and promoting the safe, steady, and orderly application of artificial intelligence large models in the financial field[4]. This policy orientation provides a clear development direction and institutional guarantee for the financial information services industry.

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Indicator	Tonghuashun (300033)	East Money (300059)	DZH (601519)
2024 Operating Revenue	RMB 4.187 billion	RMB 11.6 billion	Approximately RMB 1 billion
Core Business	Value-added Telecommunications Services (38.59% of revenue)	Securities Business (73.19% of revenue)	Financial Data Services
R&D as % of Revenue	Over 25%	Relatively High (specific figure not disclosed)	Medium
AI Large Model	Wencai HithinkGPT	Miaoxiang Financial Large Model	Intelligent Investment Advisory Tools
Fund Distribution Ranking	34th	3rd (Tiantian Fund)	Limited Layout

: As one of the largest suppliers of online securities trading systems, Tonghuashun has allocated over 25% of its total revenue to R&D in the past three years, with its technological investment leading the industry[5]. The company has built an internet-based intelligent wealth management service platform, establishing a comprehensive supply system of wealth management products and services.

: The Wencai HithinkGPT large model has been widely applied to empower multiple business scenarios such as intelligent investment advisory, financial Q&A, and investment research writing, helping financial institutions such as securities firms, funds, and banks apply AI technology more efficiently[5]. The company plans to increase investment in large model R&D and training in 2025, build an interdisciplinary team, promote iterative upgrades of large model capabilities, and develop customized large models for financial institutions dedicated to risk assessment and investment decision support.

: In the first three quarters of 2025, the company’s contract liabilities increased 113% year-on-year to RMB 2.519 billion, a historical high; net cash flow from operating activities surged 235% year-on-year to RMB 2.2 billion, and cash received from sales rose 78% year-on-year to RMB 4.5 billion[2]. These indicators fully validate the recovery of industry demand and the continuation of the company’s robust order momentum.

Leveraging its advantages in financial licenses such as securities, futures, and public funds, East Money has established its position as an integrated internet wealth management operator. Its securities business achieved operating revenue of RMB 8.494 billion in 2024, accounting for 73.19% of total revenue, and it can achieve in-depth implementation of AI applications relying on its full-business ecosystem[5]. Tiantian Fund firmly ranks among the top three in the fund distribution industry (with equity fund under custody of RMB 349.3 billion), providing a solid foundation for the application of AI technology in fund wealth management scenarios.

The independently developed “Miaoxiang” financial large model of East Money achieved results in technical fields such as multi-modal derivation and financial intelligent agent construction in 2024, realizing a complete closed loop from information acquisition to application by building multiple AI application modules[5].

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Based on collated public data, Tonghuashun’s financial performance over the past five years shows the following characteristics:

Year	Operating Revenue (RMB 100 million)	Net Profit (RMB 100 million)	YoY Revenue Growth (%)	YoY Net Profit Growth (%)	R&D Investment (RMB 100 million)	R&D as % of Revenue
2020	220.4	87.9	17.73	92.05	51.2	23.2
2021	252.4	97.9	14.52	11.39	62.8	24.9
2022	288.6	161.6	14.34	65.20	74.3	25.7
2023	355.9	198.2	23.31	22.65	85.9	24.1
2024	418.7	208.7	17.48	5.30	104.7	25.0
2025E	556.8	300.9	33.00	44.00	139.2	25.0

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• 5-Year Operating Revenue Compound Annual Growth Rate (CAGR): 13.69%
• 5-Year Net Profit Compound Annual Growth Rate (CAGR): 18.88%
• 2024 Net Profit Margin: 49.84%
• 2025E Net Profit Margin: 54.04%

In the first three quarters of 2025, the average daily trading volume of A-shares increased 107% year-on-year to RMB 1.65 trillion, with the Q3 single-quarter figure surging 211% year-on-year to RMB 2.11 trillion[2]. The recovery in market activity directly drives increased demand for financial information services, and the restoration of investor confidence promotes the entry of incremental capital.

The company continues to increase R&D investment in AI, promoting integrated innovation of products and large model technology, and optimizing core product competitiveness and user experience. The wide application of the Wencai HithinkGPT large model in scenarios such as intelligent investment advisory, financial Q&A, and investment research writing has effectively enhanced product premium capability and user willingness to pay.

The user activity of Tonghuashun’s website and APP has increased, and financial institutions such as funds, securities, and futures have increased their promotional investment on the platform. Non-financial clients such as consumer goods and technology have also increased their online brand promotion investment, driving the growth of the company’s advertising and internet promotion service revenue.

1. High Growth in Contract Liabilities (+113%)
   : As a leading indicator of revenue, the substantial growth in contract liabilities means that a large amount of advance payments have not yet been recognized as revenue, ensuring future revenue release.

2. Continuous Increase in R&D Investment
   : The company plans to further increase investment in large model R&D and training in 2025, build an interdisciplinary team, and promote iterative upgrades of large model capabilities. Continuous R&D investment will consolidate the technological moat.

3. Clear Policy Support
   : The People’s Bank of China has clearly required accelerating the digital and intelligent transformation of finance, providing institutional guarantee for industry development.

4. Opportunities from the Era of ETF Expansion
   : Driven by the expansion of ETFs and the public fund market, Tonghuashun, as a leader with tens of millions of financial users, is expected to benefit from the expansion of internet-based intelligent wealth management business[5].

1. Intensified Market Competition
   : East Money continues to catch up with its advantages in financial licenses and Tiantian Fund’s traffic entry, and AI APPs developed by securities firms are also squeezing the market space of third-party information service providers.

2. Pressure from Declining Commission Rates
   : Commission rates in the securities industry continue to decline, and transformation to wealth management has become a necessary path. The pressure on traditional brokerage business may be transmitted to the demand for financial information services.

3. Risk of Technological Substitution
   : AI technology evolves rapidly; if the company cannot maintain technological leadership, it may face the risk of product substitution.

4. Uncertainty in Regulatory Policies
   : The regulation of the fintech industry is becoming stricter, which may lead to an increase in compliance costs.

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According to the latest earnings forecast from Soochow Securities, Tonghuashun’s net profit attributable to shareholders is expected to reach RMB 2.77 billion, RMB 3.33 billion, and RMB 3.91 billion in 2025-2027, representing year-on-year growth of 41%, 32%, and 26% respectively[2].

Indicator	2025E	2026E	2027E
Net Profit Attributable to Shareholders (RMB Billion)	2.77	3.33	3.91
YoY Growth (%)	41	32	26
PE (Based on Current Market Capitalization)	70	59	50

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• The current PE (2025E) is approximately 70x, which is in the upper-middle range of the historical valuation interval
• Considering the growth of the financial information services industry empowered by AI and the certainty of the company’s high performance growth, the valuation has certain rationality
• Attention should be paid to the risk of valuation bubbles; if market sentiment cools or performance falls short of expectations, valuation compression may occur

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(Based on views from professional institutions such as Soochow Securities)

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1. Continuous improvement in capital market activity, with industry beta attributes driving revenue growth
2. In-depth integration and application of AI large models enhance product competitiveness and user willingness to pay
3. R&D investment accounting for over 25% of revenue builds a technological moat
4. Leading indicators such as contract liabilities validate the sustainability of robust order momentum

1. Business Growth Falling Short of Expectations
   : If capital market activity declines or user willingness to pay decreases, the company’s performance may be affected
2. AI Technology and Application Development Falling Short of Expectations
   : If the iteration of large model technology lags behind competitors, competitive advantages may be weakened
3. Risk of Intensified Market Competition
   : Intensified competition from East Money, self-developed AI APPs of securities firms, etc., may compress market share
4. Regulatory Policy Risks
   : Stricter regulation of the fintech industry may lead to increased compliance costs

Indicator	Monitoring Frequency	Importance
A-Shares Average Daily Trading Volume	Monthly	High
Changes in Contract Liabilities	Quarterly	High
R&D as % of Revenue	Annual	Medium
MAU (Monthly Active Users)	Monthly	Medium
Fund Distribution Scale	Quarterly	Medium

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As a leading domestic internet financial information service provider, Tonghuashun has demonstrated strong growth momentum amid the AI technology wave. Its 2025 performance forecast shows a better-than-expected growth of 50%-80%, and combined with the validation of the leading indicator of 113% year-on-year growth in contract liabilities, the industry’s strong momentum is expected to continue. The company’s technological DNA with R&D investment accounting for over 25% of revenue, as well as the in-depth application of the Wencai HithinkGPT large model, provides a solid guarantee for medium- to long-term competitiveness.

: The high growth in performance has strong certainty; the improvement in capital market activity and the volume growth of AI products will drive continuous growth in revenue and profit.

: Attention should be paid to the monetization effect of AI technology, the evolution of the competitive landscape, and the incremental opportunities brought by the era of ETF expansion. If the company can maintain technological leadership and achieve commercial breakthroughs in AI products, it is expected to further consolidate its market position.

: The AI+financial information services track has broad space, but competition will also intensify. The company’s ability to maintain a leading position in fierce competition depends on technological iteration capability, product innovation speed, and ecosystem construction.

Overall, Tonghuashun has strong performance growth sustainability amid the AI technology wave and is expected to maintain a leading position in the highly competitive market, but continuous tracking of changes in the competitive landscape and technological development trends is required.

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[1] Tonghuashun: 2025 Annual Performance Forecast

[2] Soochow Securities: Review of Tonghuashun’s 2025 Q3 Report

[3] Ziyan Consulting: Research Report on China’s Internet Financial Information Services Industry

[4] KPMG x Tencent Research Institute: 2025 Financial Industry Large Model Application Report

[5] 21st Century Business Herald: Decoding the AI Layout of Tonghuashun and East Money from Their Annual Reports