Huaan Securities(600909) Zhongyuan Securities·2024-10-14 09:51Investment Rating - The investment rating for the company is "Accumulate" [2][19]. Core Views - The company has shown stable growth in asset management and achieved high investment returns through self-operated strategies. The asset management business has seen a significant increase in net income and investment income, while brokerage and investment banking revenues have declined [5][19]. - The company is expected to maintain its relative advantage in the market, with projected earnings per share (EPS) of 0.29 yuan and 0.31 yuan for 2023 and 2024, respectively, and a book value per share (BVPS) of 4.57 yuan and 4.76 yuan for the same years [5][19]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved operating revenue of 1.962 billion yuan, a year-on-year increase of 2.95%, and a net profit attributable to shareholders of 714 million yuan, up 8.65% year-on-year. The basic earnings per share were 0.15 yuan, reflecting a 7.14% increase [5][7]. - The weighted average return on equity (ROE) was 3.33%, an increase of 0.12 percentage points year-on-year [5][7]. Revenue Composition - The revenue composition for 2024H shows an increase in the proportion of asset management, investment income (including fair value changes), and other income, while brokerage, investment banking, and interest income proportions have decreased [8][10]. - The asset management business net income and investment income (including fair value changes) have increased significantly, with asset management fees rising by 25.22% year-on-year [5][14]. Brokerage and Investment Banking - The brokerage business saw a decline in net income from brokerage fees by 13.29% year-on-year, while institutional brokerage business continued to grow [5][11]. - The investment banking business experienced a significant decline, with net income from investment banking fees down 15.38% year-on-year [5][12]. Asset Management Growth - The company’s asset management business has maintained rapid growth, with the total scale of managed products exceeding 80 billion yuan, an increase of 20 billion yuan from the end of 2023 [5][14]. - The private fund business also saw growth, with managed scale reaching nearly 30 billion yuan, up 7% from the end of 2023 [5][14]. Self-Operated Investment Returns - The company achieved a self-operated investment income (including fair value changes) of 669 million yuan, a year-on-year increase of 20.98% [5][15]. - The company has implemented a multi-strategy and multi-asset allocation approach to achieve high investment returns [5][15]. Margin Financing and Stock Pledge - The margin financing balance decreased slightly to 9.205 billion yuan, with a year-on-year market share increase [5][16]. - The stock pledge balance also decreased to 689 million yuan, down 27.01% from the end of 2023 [5][16].