EASTMONEY(SZ:300059) Soochow Securities·2024-08-10 08:37Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 4.945 billion yuan in H1 2024, a year-on-year decrease of 14.00%, and a net profit attributable to shareholders of 4.056 billion yuan, down 4.00% year-on-year [2][3] - The decline in performance is primarily attributed to pressure on fund distribution due to changes in public fund fees, despite a 4.43% increase in fund sales volume to 851.382 billion yuan [3] - The company's proprietary business showed strong growth, with investment income increasing by 42.45% to 1.634 billion yuan, partially offsetting the decline in overall performance [3] Revenue Summary - Fund distribution revenue decreased by 28.85% to 1.523 billion yuan in H1 2024, significantly impacting overall performance [3] - The company's brokerage business saw a slight decline, with net income from commissions down 4% to 2.395 billion yuan [3] - Interest income fell by 8% to 1.027 billion yuan due to a 24% increase in interest expenses [3] Cost Summary - Total operating costs decreased slightly by 4% to 2.069 billion yuan in H1 2024 [3] - Sales expenses dropped significantly by 37% to 151 million yuan due to reduced marketing costs [3] - R&D expenses increased by 10% to 556 million yuan, reflecting ongoing investments in data infrastructure and AI capabilities [3] Profit Forecast and Valuation - The report maintains profit forecasts for 2024-2026, expecting net profits of 9.288 billion yuan, 10.597 billion yuan, and 12.502 billion yuan, with corresponding growth rates of 13.36%, 14.09%, and 17.98% [4] - The expected EPS for 2024, 2025, and 2026 are 0.59 yuan, 0.67 yuan, and 0.79 yuan, respectively, with current market valuations corresponding to P/E ratios of 18.13, 15.89, and 13.47 [4]