Changjiang Securities·2024-09-04 02:13Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company experienced a decline in profitability due to market fluctuations in the first half of the year, but there was a significant recovery in Q2 driven by improvements in proprietary trading and interest income [6][7]. - The wealth management business faced overall pressure, but the company leveraged its platform advantages to continue deepening its transformation [6]. - The large asset management scale expanded rapidly, with notable growth in bond underwriting for investment banking [6][7]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 17.44 billion yuan, a year-on-year decrease of 5.1%, and a net profit attributable to shareholders of 5.31 billion yuan, down 19.0% year-on-year [6]. - The return on equity (ROE) was 3.18%, a decrease of 1.05 percentage points year-on-year [6]. - In Q2 alone, the net profit attributable to shareholders was 3.02 billion yuan, with a year-on-year decrease of 8.8% but a quarter-on-quarter increase of 31.8% [6]. Business Segments - Revenue from brokerage, investment banking, asset management, interest, and proprietary trading was 2.72 billion, 930 million, 2.22 billion, 710 million, and 4.84 billion yuan respectively, with year-on-year changes of -13.6%, -42.2%, +6.5%, +10.8%, and -31.5% [6]. - The retail segment's income decreased due to market downturns, but the company’s technological platform advantages were significant, with product distribution scale growing by 9.3% year-on-year to 227.7 billion yuan [6][7]. Asset Management and Investment Banking - The company’s asset management (AUM) figures showed significant growth, with AUM for Huatai Asset Management, Southern Fund, and Huatai Bairui reaching 506 billion, 550.6 billion, and 376.4 billion yuan respectively, representing year-on-year increases of 10.7%, 4.4%, and 57.6% [7]. - The investment banking segment saw a notable increase in bond underwriting, with bond financing reaching 288.03 billion yuan, a year-on-year increase of 25.9% [7]. Future Outlook - The company is expected to generate net profits of 12.97 billion and 13.56 billion yuan for 2024 and 2025 respectively, with corresponding price-to-book ratios of 0.69 and 0.63 [7].