HTSC(601688) 东吴证券·2024-09-01 11:00Investment Rating - Buy (Maintained) [1] Core Views - Huatai Securities' asset management business performed well, while its proprietary trading business showed marginal improvement [1] - The company's 24H1 operating income decreased by 5.05% YoY to RMB 17.441 billion, and net profit attributable to the parent company decreased by 18.99% YoY to RMB 5.311 billion [2] - In 24Q2, operating income increased by 86% QoQ to RMB 11.336 billion, and net profit attributable to the parent company increased by 32% QoQ to RMB 3.020 billion [2] Heavy Asset Business - Proprietary trading business: In 24H1, the income from proprietary trading business decreased by 28% YoY to RMB 4.214 billion, which was the biggest drag on the company's performance [3] - In 24Q2, the income from proprietary trading business increased by 88% YoY and 24% QoQ to RMB 2.334 billion, showing significant improvement [3] - Net interest income: In 24H1, net interest income increased by 11% YoY to RMB 711 million, mainly due to a 61% YoY decrease in interest expenses on securities lending to RMB 243 million [3] Light Asset Business - Investment banking business: In 24H1, the income from investment banking business decreased by 42% YoY to RMB 930 million, in line with the industry's overall decline [3] - The company's IPO underwriting amount decreased by 58% YoY to RMB 5.033 billion, but its market share increased from 5.5% in 23H1 to 16.6% in 24H1 [3] - Brokerage business: In 24H1, the income from brokerage business decreased by 14% YoY to RMB 2.72 billion, while the total stock and fund trading volume in the market decreased by 6% YoY to RMB 9.896 trillion [3] - Asset management business: In 24H1, the income from asset management business increased by 6% YoY to RMB 2.22 billion, significantly outperforming the industry [3] - The scale of public funds, collective asset management, single asset management, and special asset management increased by 18%, 4%, 41%, and -9% YoY to RMB 110.8 billion, RMB 59.1 billion, RMB 160.3 billion, and RMB 175.7 billion, respectively [3] Profit Forecast and Valuation - The net profit attributable to the parent company for 2024-2026 is expected to be RMB 11.962 billion, RMB 12.928 billion, and RMB 13.821 billion, with growth rates of -6.18%, 8.08%, and 6.91%, respectively [3] - The EPS for 2024-2026 is expected to be RMB 1.32, RMB 1.43, and RMB 1.53, respectively [3] - The PB valuation for 2024-2026 is expected to be 0.70x, 0.66x, and 0.62x, respectively [3] Market Data - Closing price: RMB 12.58 [5] - One-year low/high price: RMB 11.83/RMB 17.03 [5] - PB ratio: 0.74x [5] - Market capitalization of tradable A shares: RMB 91.763 billion [5] - Total market capitalization: RMB 113.590 billion [5] Basic Data - Net asset per share: RMB 17.10 [6] - Asset-liability ratio: 78.02% [6] - Total share capital: 9.029 billion shares [6] - Tradable A shares: 7.294 billion shares [6]