HTSC(601688) Ping An Securities·2024-10-31 06:35Investment Rating - The investment rating for the company is "Recommended (Maintain)" [2][8] Core Views - The company's Q3 performance was significantly boosted by the sale of its subsidiary AssetMark, resulting in a substantial increase in revenue and net profit [3][8] - The company reported total revenue of 314.24 billion yuan for Q3 2024, a year-on-year increase of 15.41%, and a net profit of 125.21 billion yuan, up 30.63% year-on-year [3] - The sale of AssetMark contributed 62.26 billion yuan to the net profit, while the adjusted revenue excluding non-recurring gains was 77 billion yuan, reflecting a year-on-year decrease of 12% [3][8] Financial Performance Summary - For Q3 2024, the company achieved a single-quarter revenue of 140 billion yuan (YoY +58%, QoQ +23%) and a net profit of 72 billion yuan (YoY +138%, QoQ +139%) [3] - The company's total assets were reported at 847.5 billion yuan, a decrease of 6% from the end of the previous year, while the net assets increased by 4% to 185.6 billion yuan [3] - The annualized ROE for Q1-Q3 2024 was 9.16%, an increase of 1.6 percentage points year-on-year [3] Business Segment Performance - The revenue contributions from various segments for Q1-Q3 2024 were as follows: brokerage -14%, investment banking -41%, asset management -4%, credit +52%, proprietary trading +57%, and others +13% [3] - The company’s asset management business showed resilience, with its public fund subsidiary ranking fifth in the industry by non-money market fund management scale, which increased by 36% year-on-year [6][8] Market Outlook - The report indicates that the A-share market has shown signs of recovery since late September, which is expected to benefit the company's valuation and performance [8] - The forecast for the company's net profit for 2024, 2025, and 2026 has been revised upwards to 157 billion yuan, 120 billion yuan, and 129 billion yuan respectively, reflecting year-on-year changes of +23%, -23%, and +7% [8]