EASTMONEY(SZ:300059) GF SECURITIES·2024-08-12 03:35Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 12.26 CNY per share, based on a 25x PE ratio for 2024 [5][40]. Core Views - The company reported a total revenue of 4.945 billion CNY for H1 2024, a decrease of 14% year-on-year, while the net profit attributable to shareholders was 4.056 billion CNY, down 4% year-on-year [10][40]. - The company's self-operated business showed significant growth, with self-operated income increasing by 48% year-on-year to 1.283 billion CNY, driven by a shift towards bonds and financial products [31][40]. - The brokerage business continues to gain market share, with a market share of 4.56% in stock trading, up 0.14 percentage points from H1 2023, despite a decline in trading volume [16][40]. - The company is enhancing its research and development capabilities, particularly in AI, which is expected to create new growth opportunities [38][40]. Summary by Sections Financial Performance - In H1 2024, the company achieved total revenue of 4.945 billion CNY, down 14% year-on-year, and a net profit of 4.056 billion CNY, down 4% year-on-year. The second quarter saw a revenue of 2.489 billion CNY, a 15.4% decline year-on-year, but a 1.4% increase quarter-on-quarter [10][12]. Brokerage Business - The average daily market turnover in H1 2024 was 863 billion CNY, down 9.2% year-on-year. The company's stock trading volume was 9.21 trillion CNY, a decrease of 6.4% year-on-year, with a brokerage income of 1.852 billion CNY, down 2.7% [16][18]. Fund Distribution - The company reported fund sales of 8.514 trillion CNY in H1 2024, an increase of 4% year-on-year, with non-money market fund sales slightly declining by 1% [20][21]. Margin Financing - The margin financing balance decreased by 7% year-on-year, with net interest income from margin financing at 1.12 billion CNY, down 5.8% year-on-year [26][40]. Self-Operated Business - The self-operated income reached 1.283 billion CNY in H1 2024, up 48% year-on-year, with financial investment assets totaling 101.45 billion CNY, a 25% increase year-on-year [31][40]. R&D and AI Development - The company is focusing on enhancing its R&D capabilities, particularly in AI, with R&D expenses of 556 million CNY in H1 2024, representing 11.2% of total revenue, an increase of 1.4 percentage points from the previous year [38][40].