Beijing (SZ:300803) Guohai Securities·2024-08-04 02:30Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][3]. Core Views - The company, a long-established C-end financial information service provider, has initiated a second growth curve through the acquisition of Maigao Securities. This acquisition is expected to enhance performance in the long term [2][18]. - The financial information service and internet brokerage sectors present significant market potential, driven by policy support and increasing participation from individual investors in the securities market [2][37]. - The company has a stable operational history, with a focus on financial information services, and the acquisition of Maigao Securities is anticipated to create synergies that will boost revenue [17][22]. Summary by Sections Company Overview - Founded in 1997, the company has evolved from developing securities analysis tools to becoming a comprehensive financial information service provider and now an internet brokerage [9][14]. - The company has maintained a steady growth trajectory, with a notable increase in revenue and net profit in recent years, despite some fluctuations due to market conditions [17][18]. Market Potential - The financial information service industry is entering a new growth phase, with increasing demand and supportive policies expected to drive expansion [2][37]. - The A-share market has seen significant trading volumes, with 2023 figures showing a trading volume of 16.98 trillion shares and a turnover of 212.10 trillion yuan, indicating a robust market environment [2][37]. Financial Performance and Projections - The company’s revenue is projected to grow from 1.24 billion yuan in 2024 to 2.57 billion yuan by 2026, with net profit expected to rise from 230 million yuan to 563 million yuan over the same period [3][4]. - The earnings per share (EPS) is forecasted to increase from 0.56 yuan in 2024 to 1.38 yuan in 2026, reflecting a positive outlook for profitability [3][4]. Business Model and Strategy - The company’s business model focuses on financial information services, securities services, and advertising services, with a strategic shift towards integrating these services post-acquisition of Maigao Securities [15][22]. - The acquisition of Maigao Securities is expected to enhance the company's operational capabilities and profitability, with a focus on developing a comprehensive financial service platform [36][37]. Management and Governance - The company has a stable management team with significant experience in the financial sector, which is crucial for navigating the complexities of the financial services industry [29][31]. - The ownership structure is stable, with key stakeholders holding significant shares, ensuring continuity in strategic direction [29][31].