SHANXI SECURITIES(002500) 中原证券·2024-10-15 09:30Investment Rating - The report maintains a "Buy" rating for Shanxi Securities (002500) [2][3] Core Views - Shanxi Securities achieved revenue of 1.4 billion yuan in H1 2024, a year-on-year decrease of 26%, with net profit attributable to shareholders of 319 million yuan, down 17.96% year-on-year [5] - The company's brokerage, asset management, and investment income (including fair value changes) accounted for a higher proportion of revenue, while investment banking, interest, and other income saw a decline [6] - Brokerage business net revenue increased by 13.96% year-on-year, driven by growth in commission, seat, and distribution net income [7] - Asset management business net revenue grew by 31.97% year-on-year, with a focus on fixed income products [11] - Investment banking business net revenue decreased by 25.16% year-on-year, mainly due to a significant drop in equity financing, while debt financing remained relatively stable [9] - The company's investment income (including fair value changes) decreased by 25.90% year-on-year, as it reduced directional exposure and adopted a low-volatility, low-drawdown strategy [12] - The company's margin financing balance decreased by 11.79% compared to the end of 2023, while stock pledge scale increased by 5.38% [13] Business Performance Summary Brokerage Business - Brokerage business net revenue increased by 13.96% year-on-year to 253 million yuan [7] - The number of investment advisory clients increased by 11.02%, and product AUM grew by 35.4% year-on-year [7] - Commission, seat, and distribution net income increased by 8.50%, 19.44%, and 51.91% year-on-year, respectively [8] Investment Banking Business - Investment banking business net revenue decreased by 25.16% year-on-year to 116 million yuan [9] - Equity financing underwriting amount dropped by 72.33% year-on-year to 280 million yuan [9] - Debt financing underwriting amount decreased by 6.02% year-on-year to 31.032 billion yuan, with the company maintaining a leading position in Shanxi province [9] Asset Management Business - Asset management business net revenue increased by 31.97% year-on-year to 161 million yuan [11] - The company's asset management subsidiary, Shanxi Securities Asset Management, managed a total of 65.93 billion yuan, with private asset management and public fund sizes of 34 billion yuan and 31.9 billion yuan, respectively [11] Investment Business - Investment income (including fair value changes) decreased by 25.90% year-on-year to 738 million yuan [12] - The company reduced directional exposure and adopted a low-volatility, low-drawdown strategy [12] - The company's private equity subsidiary, Shanxi Securities Investment, achieved revenue of 3 million yuan, up 3.64% year-on-year [12] Margin Financing and Stock Pledge - The company's margin financing balance decreased by 11.79% compared to the end of 2023 to 5.976 billion yuan [13] - Stock pledge scale increased by 5.38% compared to the end of 2023 to 1.213 billion yuan [13] Financial Forecast - The company is expected to achieve EPS of 0.16 yuan and 0.18 yuan in 2024 and 2025, respectively, with BVPS of 5.04 yuan and 5.18 yuan [15] - The P/B ratio is expected to be 1.21x and 1.18x in 2024 and 2025, respectively [15]