EBSCN·2024-09-02 14:08Investment Rating - The investment rating for the company's A-shares is "Neutral" and for H-shares is "Accumulate" [1][6]. Core Views - The company reported a significant decline in revenue and net profit for the first half of 2024, with revenue at 9.53 billion yuan, down 29.2% year-on-year, and net profit at 2.86 billion yuan, down 33.7% year-on-year [5][6]. - The company's self-operated business remains the primary revenue contributor, while the investment banking sector continues to face pressure due to market conditions [6]. - The report highlights a potential recovery in the brokerage and institutional client service businesses as the company advances its wealth management strategy [6]. Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 95.3 billion yuan, a year-on-year decrease of 29.2%, with Q2 revenue showing a quarter-on-quarter increase of 21.9% to 52.3 billion yuan [5][6]. - The net profit for H1 2024 was 28.6 billion yuan, down 33.7% year-on-year, with Q2 net profit increasing by 32.7% quarter-on-quarter to 16.3 billion yuan [6]. - The weighted average ROE for H1 2024 was 3.1%, a decrease of 2.3 percentage points from the previous year [5]. Revenue Breakdown - The revenue contribution from various business segments in H1 2024 was as follows: self-operated business (36.8%), brokerage (26.4%), investment banking (10.5%), asset management (6.7%), and credit business (4.0%) [6]. - The brokerage business faced challenges with net income of 2.52 billion yuan, down 9.7% year-on-year, primarily due to reduced market trading volume [6]. - Investment banking revenue saw a significant decline of 61.8% year-on-year to 1 billion yuan, attributed to stricter regulations affecting IPO and refinancing activities [6]. Future Outlook - The company is expected to benefit from capital market reforms and marginal improvements in the market, although performance recovery remains uncertain in the near term [6]. - Profit forecasts for the company are adjusted to 6.06 billion yuan for 2024, 6.71 billion yuan for 2025, and 7.06 billion yuan for 2026, with corresponding EPS estimates of 0.78, 0.87, and 0.91 yuan [6][8].