Industrial Securities(SH:601377) Xin Lang Cai Jing·2025-04-29 02:35Core Viewpoint - The financial performance of Industrial Securities for the year 2024 shows a positive trend with significant growth in total revenue and net profit, indicating a stable operational environment and potential for future growth [1][2]. Financial Performance - Total operating revenue (excluding other business income) reached 9.8 billion RMB, a year-on-year increase of 10.9%, with a quarterly revenue of 3.2 billion RMB, up by 6.9% quarter-on-quarter [1]. - The net profit attributable to shareholders was 2.16 billion RMB, reflecting a year-on-year growth of 10.2%, with a quarterly net profit of 840 million RMB, up by 4.7% quarter-on-quarter [2]. Return on Equity (ROE) - The overall ROE for the reporting period was 3.7%, an increase of 0.3 percentage points year-on-year [3]. - The quarterly ROE was 1.5%, showing a quarter-on-quarter increase of 0.8 percentage points and a year-on-year increase of 0.8 percentage points [4]. Financial Ratios - The financial leverage ratio (total assets excluding client funds) was 3.85 times, up by 0.17 times year-on-year and 0.2 times quarter-on-quarter [4]. - The asset turnover ratio was 4.4%, an increase of 0.1 percentage points year-on-year, with a quarterly asset turnover ratio of 1.4%, up by 0.2 percentage points quarter-on-quarter and 0.7 percentage points year-on-year [4]. - The net profit margin was 22.1%, a slight decrease of 0.1 percentage points year-on-year, while the quarterly net profit margin was 26.7%, up by 11.4 percentage points quarter-on-quarter and 1.6 percentage points year-on-year [4]. Business Segments - Proprietary business revenue for the quarter was 11.6 billion RMB, down by 1.6 billion RMB quarter-on-quarter, with a net yield of 2.2% [5]. - The brokerage business saw significant growth, with revenue of 21.3 billion RMB, a quarter-on-quarter increase of 111.8% and a year-on-year increase of 70% [6]. - Investment banking revenue was 7 billion RMB, with a quarterly revenue of 2.6 billion RMB, reflecting a quarter-on-quarter increase of 0.8 billion RMB [6]. Asset Management and Regulatory Metrics - Asset management revenue was stable at 1.6 billion RMB, with a quarterly revenue of 0.4 billion RMB, remaining flat both quarter-on-quarter and year-on-year [7]. - The risk coverage ratio was 272.9%, down by 48.1 percentage points from the previous period, with risk capital reserves at 14.1 billion RMB, an increase of 29.9% [7]. Investment Outlook - The company is expected to benefit from supply-side reforms and growth in asset management business, with projected EPS for 2025, 2026, and 2027 at 0.27, 0.29, and 0.32 RMB respectively [9]. - The target price is set at 6.79 RMB, with a recommendation to maintain a "buy" rating based on historical valuation and current business conditions [9].