Haitong Securities·2024-09-05 06:41Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The report highlights that the company's brokerage business is under pressure due to market sentiment, while proprietary trading has driven revenue growth. The investment banking segment has shown significant improvement in bond underwriting, and the asset management business has completed its public offering transformation, resulting in a slight year-on-year revenue increase. The reasonable value range is set at 13.62-14.60 CNY, maintaining the "Outperform the Market" rating [5][6] Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 17.09 billion CNY, a year-on-year decrease of 1.9%, and a net profit attributable to shareholders of 4.39 billion CNY, down 11.2%. The second quarter saw operating revenue of 9.87 billion CNY, up 13.3% year-on-year and 36.8% quarter-on-quarter, with a net profit of 2.76 billion CNY, an increase of 2.5% year-on-year and 69.0% quarter-on-quarter [5][6] Brokerage Business - The brokerage business experienced a slight decline, with the average daily trading volume in the market at 961.6 billion CNY, down 6.4% year-on-year. The company's brokerage revenue was 2.51 billion CNY, a decrease of 13.0% year-on-year, accounting for 15% of total revenue. The margin financing balance was 74 billion CNY, down 12% from the beginning of the year, with a market share of 5.0%, a decrease of 0.1 percentage points [5][6] Investment Banking - The investment banking segment reported revenue of 270 million CNY, an increase of 42.2% year-on-year. The equity underwriting scale increased by 147.9% year-on-year, while bond underwriting grew by 17.5%. The company ranked 18th in equity underwriting and 9th in bond underwriting, with a total bond underwriting scale of 191.4 billion CNY [5][6] Asset Management - Asset management revenue rose to 230 million CNY, a year-on-year increase of 2.1%. The asset management scale reached 101.7 billion CNY, up 7.6% year-on-year, with various asset management plans showing growth [6] Proprietary Trading - The proprietary trading segment performed well, with investment income (including fair value) reaching 4.92 billion CNY, a year-on-year increase of 5.6%. In the second quarter, investment income was 3.30 billion CNY, up 46.3% year-on-year. The company maintained a low-risk, absolute return strategy, achieving good investment results [6] Future Earnings Estimates - The company is expected to have EPS of 0.65 CNY, 0.69 CNY, and 0.77 CNY for the years 2024-2026, with BVPS of 9.73 CNY, 10.19 CNY, and 10.72 CNY respectively. The report assigns a P/B ratio of 1.4-1.5x for 2023, corresponding to a reasonable value range of 13.62-14.60 CNY [6][11]