Soochow Securities·2024-09-01 08:17Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's semi-annual report for 2024 shows a decline in total revenue by 11% year-on-year to 11.8 billion yuan, while net profit attributable to shareholders decreased by 3.9% to 4.4 billion yuan [2][8] - The proprietary trading business has seen revenue growth of 43.15% year-on-year, reaching 3.655 billion yuan, accounting for 31% of total revenue, driven by effective risk management and market opportunities [2][8] - The wealth management business has been negatively impacted by market volatility, leading to a decline in overall income, while the investment banking segment has performed well, with a 13% increase in revenue to 336 million yuan [2][8] Summary by Sections Revenue and Profit Forecast - Total revenue is projected to decline from 23.3 billion yuan in 2023 to 21.865 billion yuan in 2024, with a further increase to 25.634 billion yuan in 2025 and 30.388 billion yuan in 2026 [2][8] - Net profit attributable to shareholders is expected to decrease slightly to 6.816 billion yuan in 2024, before rising to 8.074 billion yuan in 2025 and 9.691 billion yuan in 2026 [2][8] Business Performance - The proprietary trading business has shown resilience with a significant increase in revenue, while the brokerage and asset management segments have faced challenges due to market conditions [2][8] - The investment banking business has outperformed the market, with the company achieving growth in IPO and bond underwriting activities despite a general market downturn [2][8] Strategic Developments - The company has increased its capital in its Hong Kong subsidiary by 1.1 billion HKD, enhancing its international presence and competitiveness in global financial markets [2][8] - The long-term outlook remains positive, with expectations of policy support driving growth in the securities industry, positioning the company to capitalize on future opportunities [2][8]