Yongan Futures(SH:600927) Huachuang Securities·2024-08-28 11:41Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 14.43 CNY, compared to the current price of 10.61 CNY [2]. Core Insights - The company reported total operating revenue of 12.11 billion CNY for H1 2024, a year-on-year increase of 1.2%. However, net revenue calculated on a net basis was 1.03 billion CNY, a decrease of 3.2% year-on-year. The net profit attributable to shareholders was 310 million CNY, reflecting a year-on-year increase of 25.4% [2]. - In Q2 2024, total operating revenue reached 7.77 billion CNY, a quarter-on-quarter increase of 79.2%, with net revenue of 590 million CNY, up 32.7% quarter-on-quarter. The net profit attributable to shareholders was 230 million CNY, a significant quarter-on-quarter increase of 194.6% [2]. - The report highlights a decline in the futures brokerage business, while the risk management business showed strong performance, benefiting from increased demand for hedging amid geopolitical tensions and insufficient internal demand [2]. Revenue Breakdown - For H1 2024, the breakdown of revenue sources includes: - Commission and fee income: 230 million CNY (down 34.8% year-on-year) - Interest income: 250 million CNY (down 23.4% year-on-year) - Risk management business income: 120 million CNY (down 8.8% year-on-year) - Investment income: 400 million CNY (up 102.4% year-on-year) [2]. - In Q2 2024, the revenue sources were: - Commission and fee income: 120 million CNY (up 4% quarter-on-quarter) - Interest income: 120 million CNY (down 6.8% quarter-on-quarter) - Risk management business income: 100 million CNY (up 824.4% quarter-on-quarter) - Investment income: 220 million CNY (up 31.1% quarter-on-quarter) [2]. Market Trends - The report notes a decrease in trading volume in the futures market, with the company achieving 90 million contracts in domestic futures trading, a year-on-year decrease of 13.5%. The total transaction amount was 6.79 trillion CNY, an increase of 11.5% year-on-year [2]. - The overall futures market showed a trend of "volume decrease and value increase," with a total trading volume of 6.9 billion contracts nationwide, down 12.4% year-on-year, while the transaction amount reached 56.3 trillion CNY, up 7.4% year-on-year [2]. Investment Recommendations - The company is positioned as a leader in the futures industry, with innovative risk management services expected to benefit from the expansion of the futures market. The report anticipates a recovery in market activity in the second half of the year, driven by ongoing geopolitical conflicts and regulatory improvements [2]. - The earnings per share (EPS) forecasts for 2024, 2025, and 2026 are adjusted to 0.50 CNY, 0.59 CNY, and 0.65 CNY respectively, with corresponding price-to-earnings (PE) ratios of 21.33, 18.00, and 16.22 [2][3].