Core Viewpoint - The report indicates that Zhuhai Guanyu Battery Co., Ltd. has complied with relevant regulations during the continuous supervision period, demonstrating effective governance, internal control, and proper use of raised funds [1][9]. Group 1: Company Governance and Internal Control - The company has a complete and compliant governance structure, with effective execution of internal control systems [2][3]. - The board of directors, supervisors, and senior management are fulfilling their responsibilities as per regulations [2]. Group 2: Information Disclosure - The company has established a comprehensive information disclosure system and has fulfilled its disclosure obligations accurately and timely [2][3]. Group 3: Independence and Related Party Transactions - The company maintains independence in its operations, with no violations regarding the use of funds by related parties [3][4]. Group 4: Use of Raised Funds - All raised funds are stored in a dedicated account, and the company has signed a tripartite supervision agreement with the underwriter and the bank [4][5]. - There are no instances of misappropriation or unauthorized changes in the use of raised funds [4]. Group 5: Related Transactions and Major Investments - The company has established sound management systems for related transactions, external guarantees, and major investments, with no violations reported [4][5]. Group 6: Operational Status - The company’s business model and structure have not undergone significant changes, and the operational management status is normal [5][6]. - The market outlook for the company’s main business remains stable without major adverse changes [5]. Group 7: Recommendations - The company is advised to continue improving its governance structure and timely fulfill information disclosure obligations [5][8]. - It is recommended to manage the use of raised funds effectively and to advance investment projects in an orderly manner [5][8].

Fundraising Overview - The company raised a total of RMB 3,089,043,000 through the issuance of convertible bonds, with a net amount of RMB 3,057,386,562 after deducting issuance costs [1][2] - As of December 31, 2023, the company had unutilized funds from its initial public offering (IPO) amounting to RMB 530.08 million and from the convertible bonds amounting to RMB 1.29 billion [2][3] Fund Management and Usage - The company has established a fundraising management system in compliance with regulatory requirements, including a tripartite supervision agreement with banks and the sponsor [3][4] - As of December 31, 2024, the total balance of the fundraising accounts was RMB 317.63 million, which includes interest income of RMB 37.73 million [6][9] Project Funding and Adjustments - The company has completed the funding for the "Supplementary Working Capital" project, utilizing RMB 233.93 million [4][12] - The "Chongqing Lithium Battery Cell Packaging Production Line Project" was terminated, and RMB 108.93 million was returned to the fundraising account [15][16] - The company has approved the use of surplus funds from completed projects to permanently supplement working capital [13][14] Cash Management - The company has approved the use of idle fundraising funds for cash management, allowing for investments in safe and liquid financial products, with a maximum of RMB 2 billion [10][11] - As of December 31, 2024, the balance of idle funds used for cash management was RMB 0.00 million, indicating all investments have matured and returned as expected [10][11] Regulatory Compliance - The company has adhered to the disclosure requirements set forth by regulatory bodies, ensuring timely and accurate reporting of fundraising storage and usage [16][17] - The sponsor has confirmed that the company's fundraising management practices comply with relevant regulations and accurately reflect the fundraising situation [17]

Investment Rating - The report maintains a "Recommended" rating for the company, expecting it to outperform the benchmark index by 10%-20% over the next six months [11][23]. Core Views - The company's ROE has shown significant improvement both year-on-year and quarter-on-quarter, with a reported ROE of 8%, up by 0.8 percentage points year-on-year. The quarterly ROE stands at 2.5%, reflecting a 0.6 percentage point increase quarter-on-quarter and a 0.5 percentage point increase year-on-year [2]. - The total revenue for the reporting period, excluding other business income, reached 20.7 billion yuan, representing a year-on-year increase of 14.1%. The net profit attributable to the parent company was 10.39 billion yuan, up 18.5% year-on-year [8][11]. - The company benefits from a robust regulatory framework, with a risk coverage ratio of 216.7%, significantly above the warning line of 120% [4]. Financial Performance Summary - The company's self-operated business revenue totaled 9.53 billion yuan, with a quarterly revenue of 2.36 billion yuan, showing a slight decrease quarter-on-quarter [3]. - Interest income from credit business amounted to 10.02 billion yuan, with a quarterly income of 2.68 billion yuan, reflecting a quarter-on-quarter increase of 3.75 billion yuan [3]. - The brokerage business revenue reached 6.18 billion yuan, with a quarterly revenue of 2.51 billion yuan, marking a substantial increase of 128.9% quarter-on-quarter and 100.5% year-on-year [10]. Valuation and Price Target - The target price for the company's stock is set at 22.37 yuan, with the current price at 18.17 yuan, indicating a potential upside [5][11]. - The expected EPS for 2025, 2026, and 2027 is projected to be 1.45, 1.56, and 1.67 yuan respectively, with corresponding PB ratios of 1.28, 1.19, and 1.11 [11][12].

Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 22.37 CNY, compared to the current price of 18.17 CNY [5][11]. Core Insights - The company's ROE has shown significant improvement, with a reported ROE of 8%, up by 0.8 percentage points year-on-year. The quarterly ROE stands at 2.5%, reflecting a 0.6 percentage point increase quarter-on-quarter and a 0.5 percentage point increase year-on-year [2]. - The total revenue for the reporting period, excluding other business income, reached 20.7 billion CNY, marking a 14.1% increase year-on-year. The net profit attributable to the parent company was 10.39 billion CNY, up 18.5% year-on-year [8][11]. - The company has demonstrated a robust performance in its brokerage business, with revenues of 6.18 billion CNY, which is a 100.5% increase year-on-year and a 128.9% increase quarter-on-quarter [10]. Financial Performance Summary - The company's financial leverage ratio at the end of the reporting period was 3.96 times, a decrease of 0.41 times year-on-year [2]. - The asset turnover ratio improved to 4%, with a quarterly turnover of 1.3%, reflecting a 0.3 percentage point increase quarter-on-quarter [2]. - The net profit margin for the reporting period was 50.1%, an increase of 1.9 percentage points year-on-year [2]. - The company's interest income from credit business was 10.02 billion CNY, with a quarterly income of 2.68 billion CNY, showing a quarter-on-quarter increase of 3.75 billion CNY [3][10]. Regulatory Indicators - The company's risk coverage ratio stands at 216.7%, an increase of 39.5 percentage points from the previous period, indicating a strong regulatory position [4]. - The net capital is reported at 87.4 billion CNY, reflecting a 10.1% increase from the previous period [4].

Core Viewpoint - The company is actively seizing opportunities in both equity and bond markets in 2024, driving significant performance growth [1][3]. Financial Performance - The company maintains a "Buy" rating with a target price of 21.09 CNY per share, corresponding to a PE ratio of 16.93x and a PB ratio of 1.49x [2]. - Projected revenue and net profit for 2024 are 20.891 billion CNY and 10.386 billion CNY, respectively, reflecting year-on-year growth of 5.4% and 18.51% [2]. - The weighted average ROE is expected to increase by 0.91 percentage points to 8.82%, aligning with performance expectations [2]. - The EPS forecast for 2025-2026 has been slightly adjusted to 1.26 CNY and 1.30 CNY, respectively, with a new EPS estimate of 1.36 CNY for 2027 [2]. Investment Business - The net income from the investment business increased by 33.23% to 11.01 billion CNY, contributing 108.16% to the adjusted revenue growth, marking it as the primary driver of performance improvement [3]. - The investment business growth is attributed to favorable market conditions in the bond market, with a year-on-year investment return increase of 0.57 percentage points to 2.57% [3]. - In Q4 2024, the company reported investment income of 2.361 billion CNY, showing a quarter-on-quarter decrease of 2.16%, indicating stable investment performance [3]. Brokerage Business - The brokerage business is expected to significantly contribute to profitability, with a projected share of 30% in adjusted revenue for 2024, positioning the company favorably within the industry [4]. - The brokerage business saw a year-on-year increase of 11.79% to 6.183 billion CNY, contributing 25.69% to the adjusted revenue growth [3][4]. - The company is enhancing user engagement through content operations and increasing support for ETF products, which is expected to strengthen its competitive advantage in the brokerage sector [4]. Market Activity - The stock market is experiencing sustained trading activity, which is anticipated to support the performance of brokerage firms [5].

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company reported a revenue of 20.89 billion yuan for 2024, a year-on-year increase of 5.4%, and a net profit attributable to shareholders of 10.39 billion yuan, up 18.5% year-on-year [5] - The company's brokerage business revenue reached 6.18 billion yuan, growing 11.8% year-on-year, with a significant increase in the number of normal trading clients [7] - The investment banking business showed resilience, with a focus on enhancing its service capabilities and expanding its market presence [7] - The asset management business remained stable, with contributions from joint ventures like Bosera and China Merchants Fund [7] - The self-operated investment net income increased by 42.15% year-on-year, reflecting a stable growth strategy [7] - The company is expected to benefit from a recovering capital market, with adjusted profit forecasts for 2025-2027 showing net profits of 11.68 billion yuan, 13.45 billion yuan, and 15.19 billion yuan respectively [7] Financial Data and Profit Forecast - The company’s projected revenues for 2025, 2026, and 2027 are 24.01 billion yuan, 27.09 billion yuan, and 29.89 billion yuan respectively, with corresponding net profits of 11.68 billion yuan, 13.45 billion yuan, and 15.19 billion yuan [6][8] - The return on equity (ROE) is expected to improve from 8.84% in 2024 to 10.47% by 2027 [6] - The price-to-earnings (P/E) ratio is projected to decrease from 15.83 in 2024 to 10.63 in 2027, indicating potential value appreciation [6]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock's performance in the near term [1]. Core Insights - The company achieved a total revenue of 20.89 billion yuan in 2024, representing a year-on-year growth of 5.4%. The net profit attributable to shareholders reached 10.39 billion yuan, up 18.5% year-on-year, with an EPS of 1.13 yuan and a ROE of 8.8%, an increase of 0.9 percentage points year-on-year [9]. - The wealth management transformation has entered a new phase, with brokerage business revenue of 6.18 billion yuan, a year-on-year increase of 11.8%, accounting for 29.9% of total revenue. The company’s market share in brokerage decreased by 0.7 percentage points to 4.51% [9]. - Investment banking revenue declined by 34.2% to 860 million yuan, with a significant drop in equity underwriting scale by 42% to 13.84 billion yuan, ranking 6th in the industry. However, bond underwriting increased by 30.9% to 426.5 billion yuan, ranking 8th [9]. - The asset management business saw a slight revenue increase of 0.6% to 720 million yuan, with total asset management scale at 267.4 billion yuan, a decrease of 9.3% [9]. - The company’s investment strategy remains stable, with net investment income (including fair value) increasing by 41.6% to 9.53 billion yuan [9]. - The forecast for net profit attributable to shareholders for 2025-2027 is 12.3 billion, 13.1 billion, and 14 billion yuan, respectively, with expected year-on-year growth rates of 18%, 7%, and 7% [9]. Financial Summary - Total revenue for 2023 is projected at 19.82 billion yuan, with a year-on-year growth of 3.13%. The net profit for 2023 is estimated at 8.76 billion yuan, reflecting an 8.57% increase [1]. - The company’s P/E ratio is expected to decrease from 19.33 in 2023 to 11.30 by 2027, indicating a potentially undervalued stock as earnings grow [1]. - The company’s total assets are projected to grow from 721.16 billion yuan in 2024 to 821.19 billion yuan by 2027 [15].

Core Viewpoint - The performance of China Merchants Securities (600999.SH) is primarily driven by investment and trading income, while investment banking revenue has significantly declined, indicating a reliance on market conditions for profitability [2][5]. Financial Performance - In 2024, China Merchants Securities achieved operating revenue of 20.891 billion yuan, a year-on-year increase of 5.40%, and a net profit attributable to shareholders of 10.386 billion yuan, up 18.51% [2]. - The core driver of revenue growth was the substantial increase in investment and trading income, which rose by 79.14% year-on-year [4]. - The company reported its best quarterly performance in Q4 2024, with operating revenue reaching 6.612 billion yuan and net profit of 3.236 billion yuan [3]. Business Segments - The main business segments and their revenues for 2024 were as follows: Wealth Management and Institutional Business (10.233 billion yuan), Investment Banking (0.858 billion yuan), Investment Management (0.924 billion yuan), Investment and Trading (6.334 billion yuan), and Other Businesses (2.543 billion yuan) [3]. - The proportion of revenue from investment and trading increased by 12.48 percentage points compared to 2023, while other segments saw a decline in their revenue share [3]. Regulatory Issues - China Merchants Securities has faced multiple regulatory penalties in recent years, involving issues such as compliance failures and misconduct by employees [7][8]. - The company received a warning from the Shenzhen Stock Exchange for violations related to its underwriting and sponsorship of IPOs, including inadequate internal control checks [7][8]. - In February 2024, the China Securities Regulatory Commission penalized numerous employees for illegal stock trading, resulting in a total fine of 81.73 million yuan and various administrative measures against the company [8].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company achieved a revenue of 20.891 billion yuan in 2024, a year-on-year increase of 5.4%, and a net profit attributable to shareholders of 10.386 billion yuan, up 18.51% year-on-year. The return on equity (ROE) was 8.82%, an increase of 0.91 percentage points, and earnings per share (EPS) rose by 20.21% to 1.13 yuan [1][4]. - The company's brokerage business net income from fees reached 6.183 billion yuan, an increase of 11.79% year-on-year, with a significant growth in wealth management and institutional business [2][4]. - Investment income, including fair value changes, was 9.527 billion yuan, a 41.57% increase year-on-year, driven by favorable market conditions and active trading [3][4]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 20.891 billion yuan, with a year-on-year growth of 5.4%. The net profit attributable to shareholders was 10.386 billion yuan, reflecting an 18.51% increase. The EPS was 1.13 yuan, up 20.21% [1][5]. - The company’s financial assets totaled 378.8 billion yuan, a 1.13% increase year-on-year, supported by favorable capital market policies [3]. Wealth Management and Institutional Business - The company’s wealth management assets reached 4.27 trillion yuan, a 14.78% increase year-on-year, with a notable rise in the number of high-net-worth clients [2]. - The institutional business saw a significant increase in outsourced custody scale, reaching 3.46 trillion yuan, with a market share of 21.72% in private fund product custody [2]. Investment and Asset Management - The company’s investment income was 9.527 billion yuan, a 41.57% increase year-on-year, attributed to improved market conditions and successful equity investments [3]. - The asset management business showed steady growth, with net income from asset management fees reaching 717 million yuan, a slight increase of 0.61% year-on-year [3]. Future Earnings Forecast - The earnings forecast for 2025 and 2026 has been adjusted upwards by 7.8% and 5.0%, respectively, with projected net profits of 10.814 billion yuan and 11.638 billion yuan for those years [4][5].

Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintaining the previous rating [8]. Core Views - The company's 2024 performance shows a revenue of 20.891 billion RMB, a year-on-year increase of 5.40%, and a net profit attributable to shareholders of 10.386 billion RMB, up 18.51% year-on-year. The fourth quarter alone saw a revenue of 6.612 billion RMB, a significant increase of 33% year-on-year and 41% quarter-on-quarter [1][2]. - Investment business is identified as the core driver of growth, with annual investment income reaching a record high of 9.5 billion RMB, a 42% increase year-on-year, accounting for 46% of total revenue [2][3]. - The brokerage and asset management businesses continue to show growth, benefiting from market recovery, with net income from brokerage services increasing by 12% year-on-year [3]. - The investment banking and credit business saw a decline, with net income from investment banking down 34% year-on-year due to a significant drop in IPO and refinancing activities [4]. Summary by Sections Financial Performance - The company reported a total revenue of 20.891 billion RMB for 2024, with a year-on-year growth of 5.40%. The net profit attributable to shareholders was 10.386 billion RMB, reflecting an 18.51% increase [1][7]. - The investment business generated 9.5 billion RMB in revenue, marking a 42% increase year-on-year and contributing 46% to total revenue [2]. Business Segments - Brokerage business net income reached 6.2 billion RMB, up 12% year-on-year, while asset management business net income was stable at 700 million RMB, a 1% increase [3]. - The investment banking segment faced challenges, with net income dropping to 860 million RMB, a 34% decline year-on-year due to reduced market activity [4]. Profit Forecast and Valuation - The earnings per share (EPS) forecast for 2025 is set at 1.36 RMB, with a projected book value per share (BPS) of 15.78 RMB. The target price is set at 23.91 RMB for A shares and 17.27 HKD for H shares, reflecting a premium to the expected price-to-book (PB) ratio [5][8].