Founder Securities(SH:601901) Zhongyuan Securities·2024-09-19 03:30Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating an expected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [22]. Core Views - The company achieved a revenue of 3.722 billion yuan in the first half of 2024, a year-on-year decrease of 8.18%, and a net profit attributable to shareholders of 1.351 billion yuan, down 6.15% year-on-year [4][6]. - The company has seen an increase in the proportion of investment income (including fair value changes) and asset management business net income, while brokerage, investment banking, interest, and other income have all decreased [7][11]. - The company has successfully countered the downward pressure on investment banking by focusing on debt financing, with a significant increase in bond underwriting income [11][12]. - The company's proprietary equity investments have yielded good returns, with a year-on-year increase of 13.53% in total investment income [13]. - The company is actively managing low-efficiency assets, including the sale of its stake in Credit Suisse Securities, which has improved operational efficiency [17]. Summary by Sections Financial Performance - For the first half of 2024, the company reported a basic earnings per share (EPS) of 0.16 yuan, down 5.88% year-on-year, and a return on equity (ROE) of 2.93%, a decrease of 0.35 percentage points year-on-year [4][6]. - The company plans to distribute a dividend of 0.48 yuan per share (before tax), which represents 29.25% of the net profit attributable to shareholders for the first half of the year [6]. Business Segments - The brokerage business net income decreased by 6.51% year-on-year, while the company maintained a stable market share in institutional brokerage [9][10]. - The asset management business saw a net income increase of 32.61% year-on-year, despite a decrease in the total entrusted asset scale [12]. - The company’s proprietary fixed income business continued to grow, with a year-on-year increase of 166.55% in income [13]. Future Projections - The company expects EPS of 0.23 yuan and 0.25 yuan for 2024 and 2025, respectively, with book value per share (BVPS) projected at 5.70 yuan and 5.90 yuan [17]. - The report anticipates a price-to-book (P/B) ratio of 1.20 and 1.16 for 2024 and 2025, respectively, based on the closing price of 6.83 yuan on September 18 [17].