EASTMONEY(300059) 长江证券·2024-10-29 06:43Investment Rating - Buy rating maintained for Oriental Wealth (300059 SZ) [7] Core Views - Oriental Wealth demonstrated stable operations in the first three quarters of 2024, with self-operated investment income significantly contributing to performance [1] - Despite market volatility and fee reductions impacting fund distribution and securities business revenues, the company's securities business market share continued to grow, and platform activity significantly rebounded [1] - As a benchmark internet brokerage, Oriental Wealth maintains significant competitive advantages in customer acquisition and cost control, with strong growth certainty and ecosystem advantages in the medium to long term [1] Financial Performance - In Q3 2024, Oriental Wealth achieved operating revenue of RMB 7 3 billion, a year-on-year decrease of 14 0%, and net profit attributable to shareholders of RMB 6 04 billion, a year-on-year decrease of 2 7% [3] - Q3 single-quarter profit growth turned positive, with self-operated investments contributing to performance support [4] - Total operating revenue (including investment income) and net profit attributable to shareholders for the first three quarters were RMB 9 71 billion and RMB 6 04 billion, respectively, with weighted ROE at 8 1% [4] Business Segment Analysis - Securities business market share continued to rise, with platform activity significantly rebounding [5] - Q3 single-quarter market average daily turnover was RMB 677 6 billion, a year-on-year decrease of 15 1%, while Oriental Wealth's securities brokerage business outperformed the market [5] - By the end of Q3, the company's financing balance market share was 3 1%, a year-on-year increase of 0 2 percentage points [5] Investment Performance - The company's financial assets totaled RMB 108 74 billion by the end of Q3 2024, a year-on-year increase of 32 5%, with rapid balance sheet expansion [5] - Investment income for the first three quarters was RMB 2 41 billion, a year-on-year increase of 49 3%, with a static investment return rate of 2 21%, up 0 25 percentage points year-on-year [5] Cost Control - R&D, management, and sales expenses for the first three quarters were RMB 850 million, RMB 1 71 billion, and RMB 220 million, respectively, with sales expenses significantly reduced due to reduced market promotion [6] - The corresponding expense ratios were 8 7%, 17 6%, and 2 2%, respectively, with overall cost control performing well [6] Future Projections - Expected net profits for 2024 and 2025 are RMB 8 79 billion and RMB 11 12 billion, respectively, representing year-on-year growth of 7 2% and 26 6% [6] - Corresponding P/E ratios are 40 8x and 32 2x for 2024 and 2025, respectively [6]