CGS(601881) 中原证券·2024-09-25 09:00Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2][18]. Core Views - The company has experienced a slight decline in revenue and net profit in the first half of 2024, with operating income at 17.086 billion yuan, down 1.88% year-on-year, and net profit attributable to shareholders at 4.388 billion yuan, down 11.16% year-on-year [4][6]. - Despite market pressures, the company maintains a leading position in the brokerage industry, with a focus on debt financing and a strategic emphasis on serving national priorities and the real economy [18]. - The company is expected to benefit from policy directions aimed at fostering high-quality development in the investment banking sector [18]. Summary by Sections Financial Performance - In H1 2024, the company achieved operating income of 17.086 billion yuan, a decrease of 1.88% year-on-year, and a net profit of 4.388 billion yuan, down 11.16% year-on-year [4][6]. - Basic earnings per share (EPS) were 0.35 yuan, reflecting a decline of 22.22% year-on-year [4][6]. - The weighted average return on equity (ROE) was 3.63%, down 1.47 percentage points year-on-year [4][6]. Business Segments - Investment income (including fair value changes) increased, accounting for 28.8% of total net income, while brokerage and investment banking revenues saw declines [7][15]. - The brokerage business faced slight pressure, with net income from brokerage fees down 12.97% year-on-year [8][9]. - Debt financing maintained rapid growth, with investment banking fees up 42.25% year-on-year, benefiting from a low base [10][18]. - Asset management revenues stabilized, with net income from asset management fees increasing by 2.24% year-on-year [12][18]. - Fixed income investments are being driven by customer demand, with investment income (including fair value changes) up 5.52% year-on-year [15][18]. Market Position and Future Outlook - The company has a strong market position, with international business revenues showing resilience despite a slight decline of 1.08% year-on-year [17][18]. - The company is expected to achieve EPS of 0.56 yuan and 0.60 yuan for 2024 and 2025, respectively, with corresponding book value per share (BVPS) of 9.62 yuan and 10.08 yuan [18][19]. - The price-to-book (P/B) ratios are projected to be 1.25 and 1.19 for 2024 and 2025, respectively, based on the closing price of 12.04 yuan on September 24, 2024 [18][21].