Haitong Securities·2024-09-03 00:40Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][21]. Core Views - The company maintains its business advantages and is expected to continue its leading position, benefiting from regulatory policies that favor strong performers [6][25]. - The reasonable price range for the company's stock is estimated to be between 21.46 and 23.41 CNY per share [6][25]. Financial Performance Summary - For the first half of 2024, the company reported operating revenue of 30.18 billion CNY, a year-on-year decrease of 4.2%, and a net profit attributable to shareholders of 10.57 billion CNY, down 6.5% year-on-year [6][25]. - The second quarter saw operating revenue of 16.43 billion CNY, an increase of 1.7% year-on-year and 19.4% quarter-on-quarter, with a net profit of 5.61 billion CNY, down 4.7% year-on-year but up 13.2% quarter-on-quarter [6][25]. Business Segment Analysis - Brokerage business experienced a slight decline, with brokerage revenue of 4.88 billion CNY, down 7.8% year-on-year, and net interest income of 1.14 billion CNY, down 47.4% year-on-year due to increased interest expenses [6][25]. - The investment banking segment faced pressure, with investment banking revenue of 1.74 billion CNY, down 54.6% year-on-year, and equity underwriting volume down 80% year-on-year [6][25][26]. - Asset management revenue slightly decreased to 4.91 billion CNY, down 1.1% year-on-year, while the company’s asset management scale reached 1.4564 trillion CNY [7][26]. Investment Recommendations - The company is expected to have EPS of 1.20, 1.27, and 1.53 CNY for the years 2024, 2025, and 2026 respectively, with BVPS of 19.75, 20.77, and 21.86 CNY [7][26]. - The company is given a P/B ratio of 1.1-1.2x for 2024, corresponding to a reasonable value range of 21.73-23.70 CNY [7][26].