Zhongyuan Securities·2024-09-27 13:00Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a projected increase of 5% to 15% relative to the CSI 300 index over the next six months [2][28]. Core Views - The company has shown significant growth in proprietary trading and investment income, while public fund income has slightly decreased. The overall performance is expected to improve due to favorable market reforms [5][23]. - The company achieved a total operating income of 11.778 billion yuan in the first half of 2024, a year-on-year decrease of 11.02%, and a net profit attributable to shareholders of 4.362 billion yuan, down 3.88% year-on-year [5][8]. Summary by Sections Financial Performance - In H1 2024, the company reported operating income of 11.778 billion yuan, a decrease of 11.02% year-on-year, and a net profit of 4.362 billion yuan, down 3.88% year-on-year. Basic earnings per share were 0.52 yuan, a decline of 7.14% [5][8]. - The weighted average return on equity was 3.39%, a decrease of 0.45 percentage points year-on-year [5][8]. Business Segments - The proportion of net income from investment banking and investment income (including fair value changes) has increased, while the shares of brokerage, asset management, interest, and other income have decreased [9][23]. - The company’s brokerage business net income was 2.762 billion yuan, down 8.60% year-on-year, but the market share of stock trading volume has increased [11][23]. - The company completed equity financing of 6.945 billion yuan, a decrease of 15.08% year-on-year, while debt financing increased significantly by 64.63% to 152.428 billion yuan [13][23]. - The asset management business saw a slight decline in public fund income contribution, with net income from asset management down 19.22% year-on-year [17][23]. Investment Performance - The company achieved a significant increase in investment income (including fair value changes) of 3.778 billion yuan, up 28.59% year-on-year, driven by strong performance in both equity and fixed income proprietary trading [20][23]. - The company’s total assets as of June 30, 2024, were 6893.28 billion yuan, with total equity of 1407.03 billion yuan [2][5]. Future Outlook - The company is expected to benefit from capital market reforms aimed at increasing the development of equity funds and enhancing long-term capital inflows, which may drive overall performance back into an upward trajectory [5][23]. - EPS is projected to be 0.77 yuan for 2024 and 0.84 yuan for 2025, with corresponding P/B ratios of 0.90 and 0.85 based on the closing price of 13.92 yuan on September 26, 2024 [5][23].