Zhongyuan Securities·2024-09-24 08:30Investment Rating - The report maintains an "Accumulate" investment rating for Huatai Securities, indicating an expected relative price increase of 5% to 15% compared to the CSI 300 index over the next six months [27]. Core Views - The report highlights that despite a slight decline in retail brokerage business due to market conditions, the company's investment banking business remains competitive, and its asset management scale continues to grow. The sale of AssetMark is expected to significantly enhance the company's performance in 2024, leading to anticipated revenue and net profit growth [21][5]. Summary by Sections Financial Performance - In the first half of 2024, Huatai Securities achieved operating revenue of 17.441 billion yuan, a year-on-year decrease of 5.05%. The net profit attributable to shareholders was 5.311 billion yuan, down 18.99% year-on-year, with basic earnings per share of 0.55 yuan, a decline of 21.43% [5][7]. Business Segments - The report indicates an increase in the proportion of asset management, net interest income, and other income, while brokerage, investment banking net income, and investment income (including fair value changes) saw a decline. Specifically, the net income from brokerage business decreased by 13.64% year-on-year, while investment banking fees dropped by 42.17% [8][12]. - The asset management business showed resilience, with net income from asset management fees increasing by 6.47% year-on-year, and the total scale of asset management reaching 505.983 billion yuan, up 6.41% from the end of 2023 [14][5]. International Business - The international business revenue grew significantly by 67.50% year-on-year, reaching 6.491 billion yuan, with strong performance from Huatai International, maintaining a leading position among Chinese brokers in Hong Kong [20][5]. Future Projections - The report projects earnings per share (EPS) of 1.48 yuan for 2024 and 1.30 yuan for 2025, with book value per share (BVPS) expected to be 18.14 yuan and 18.75 yuan respectively. The price-to-book (P/B) ratios are forecasted at 0.72 and 0.70 based on the closing price of 13.08 yuan on September 23 [21][5].