CMS(600999) 华西证券·2024-09-01 08:03Investment Rating - The report maintains an "Accumulate" rating for the company, with a target price set at 14.63 CNY per share, reflecting a market capitalization of 127.23 billion CNY [2][6]. Core Insights - The company reported a total operating revenue of 9.59 billion CNY, a year-on-year decrease of 3%, while the net profit attributable to shareholders remained stable at 4.75 billion CNY, with a return on equity (ROE) of 4.08%, down by 0.25 percentage points year-on-year [2][3]. - The second quarter of 2024 saw operating revenue of 5.30 billion CNY, with no year-on-year change and a quarter-on-quarter increase of 23%. The net profit for the same period was 2.59 billion CNY, reflecting a year-on-year increase of 5% and a quarter-on-quarter increase of 20% [2][3]. Revenue Breakdown - The report highlights a significant increase in securities proprietary income, which rose by 21% year-on-year. However, interest, investment banking, and brokerage revenues saw the largest declines, dropping by 50%, 36%, and 12% respectively, contributing to the overall revenue decline [3][4]. - The income structure indicates that securities investment and brokerage business revenues accounted for the highest proportions at 50% and 27% respectively, while equity investment, interest, asset management, and investment banking contributed 8%, 5%, 4%, and 3% respectively [3][4]. Fee-based Business Performance - The brokerage business net income was reported at 2.58 billion CNY, down 12% year-on-year. The retail brokerage, institutional brokerage, and financial product distribution revenues were 1.83 billion CNY, 322 million CNY, and 227 million CNY respectively, with year-on-year changes of -10%, -31%, and +6% [4]. - The investment banking revenue was 280 million CNY, a decrease of 36% year-on-year, although the company improved its market share in various segments [4]. Asset Management and Fund Performance - The entrusted asset management business generated 340 million CNY in revenue, down 9% year-on-year, with total asset management scale reaching 302.2 billion CNY, a 2% increase year-on-year [4]. - The report notes that the company's affiliated funds, including Bosera Fund and China Merchants Fund, ranked highly in the bond fund industry, with net profits of 756 million CNY and 847 million CNY respectively [4]. Financial Metrics - The company’s financial assets investment scale was 359.8 billion CNY, up 9% year-on-year, with an investment return rate of 1.31%, an increase of 0.06 percentage points year-on-year [5]. - The report projects a downward adjustment in revenue forecasts for 2024 and 2025 to 17.82 billion CNY and 21.17 billion CNY respectively, while increasing the 2026 forecast to 27.00 billion CNY [6][8].