Orient Securities(SH:600958) Xin Lang Cai Jing·2025-03-31 02:28Core Viewpoint - Dongfang Securities reported strong financial performance in 2024, driven by significant growth in proprietary investment income, with total revenue and net profit reaching 19.19 billion and 3.35 billion yuan, respectively, marking year-on-year increases of 12.3% and 21.7% [1][2] Financial Performance - In 2024, the company achieved total revenue of 19.19 billion yuan and net profit attributable to shareholders of 3.35 billion yuan, reflecting year-on-year growth of 12.3% and 21.7% [1][2] - The weighted average return on equity (ROE) increased by 0.69 percentage points to 4.14% [1][2] - The operating leverage, excluding client funds, rose by 8.1% to 3.74 times compared to the beginning of the year [1] Quarterly Performance - In Q4, the company reported a significant recovery in performance, with revenue and net profit reaching 5.11 billion and 0.05 billion yuan, respectively, representing year-on-year increases of 50.5% and 146.6% [2] - The recovery in the market contributed to this performance, with the overall equity market, as measured by the Wind All A Index, rising by 10.0% [3] Business Segments - Proprietary investment income surged to 5.38 billion yuan, a year-on-year increase of 81.2%, significantly boosting overall performance [2][3] - Brokerage, investment banking, asset management, interest income, and proprietary income for the year were 2.51 billion, 1.17 billion, 1.34 billion, 1.32 billion, and 5.38 billion yuan, respectively, with declines in brokerage, investment banking, asset management, and interest income, while proprietary income saw substantial growth [2] Market Conditions - The market showed signs of recovery, with average daily trading volume in the two markets reaching 1.8529 trillion yuan, a year-on-year increase of 122.5% [4] - The number of client accounts increased to 2.9198 million, up 8.5% from the beginning of the year, and total custodial assets reached 878.273 billion yuan, a 17.74% increase [4] Asset Management - The asset management business faced challenges, with revenue declining to 1.34 billion yuan, a year-on-year decrease of 33.9% [5] - Despite the decline, the company maintained a leading position in active management, with a ten-year stock investment return rate of 165.10%, ranking first in the industry [5] Long-term Outlook - The company is expected to benefit from the recovery in the capital markets, with projected net profits of 3.62 billion and 3.74 billion yuan for 2025 and 2026, corresponding to price-to-earnings ratios of 22.9 and 22.2, and price-to-book ratios of 1.11 and 1.06 [5]