The China Merchants Securities Research Report pointed out that the core catalyst is resonating, and the prosperity of the capital market and securities industry is expected to continue to recover in a low base context, and the brokerage sector is highly recommended. In terms of performance, the securities industry is expected to have revenue of about 450 billion yuan and net profit of about 165 billion yuan in 2023. In a low-base context, the growth rate is around 15%. In terms of institutional holdings, as of 23Q2, the institutional holdings ratio in the brokerage sector was only 0.37%, and the PB valuation of the brokerage index has been relatively low in the past 10 years. Currently, the brokerage sector is expected to face a double blow from Davis, which catalyzes valuation and boosts performance.