EASTMONEY(300059) CAITONG SECURITIES·2024-10-26 08:23Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported better-than-expected performance, benefiting significantly from the recovery in A-share trading activity [1] - For the first three quarters of 2024, the company achieved total operating revenue and net profit attributable to shareholders of 7.304 billion and 6.042 billion yuan, respectively, representing year-on-year changes of -14.0% and -2.7% [2][3] - The decline in fund distribution revenue is attributed to a prolonged downturn in the fund sales market, which has dropped to 30% of total revenue [2] - The company's brokerage business market share continues to improve, contributing positively to performance despite a 11.1% year-on-year decline in market stock trading volume [3] Summary by Sections Financial Performance - For Q3 2024, the company’s operating revenue was 7.304 billion yuan, with a net profit of 6.042 billion yuan, showing a decline of 14.0% and 2.7% year-on-year respectively [2] - The revenue breakdown includes fund distribution revenue of 2.243 billion yuan, net interest income of 1.506 billion yuan, and net commission income of 3.555 billion yuan, with year-on-year changes of -26.8%, -9.7%, and -5.3% respectively [2] - The company’s operating costs and various expenses showed mixed results, with significant reductions in sales expenses by 38.5% [2] Market Position and Outlook - The company’s market share in brokerage services has increased, with a notable rise in trading volume in the Tibet region, reaching 3.93% by the end of September [3] - Investment income and fair value changes increased by 49.3% to 2.406 billion yuan, driven by a 19.7% increase in financial asset positions [3] - The company is expected to benefit from the overall recovery of the A-share market, with projected net profits for 2024-2026 of 8.996 billion, 12.649 billion, and 15.256 billion yuan, reflecting year-on-year growth rates of 9.8%, 40.6%, and 20.6% respectively [3]