Ping An Securities·2024-10-31 06:35Investment Rating - The report maintains a "Recommended" investment rating for the company [1] Core Views - The company's performance continues to be under pressure, but self-operated income has shown improvement, leading to a narrowing of the decline in overall performance [3][5] - The company has a competitive edge due to its institutional business strengths and high-net-worth client resources, which are expected to benefit from long-term capital market reforms focused on high-quality development [5] Financial Performance Summary - For Q3 2024, the company reported operating revenue of 13.449 billion yuan, a year-on-year decrease of 23.0%, and a net profit attributable to shareholders of 2.858 billion yuan, down 38.0% year-on-year [3] - The total assets reached 655.4 billion yuan, an increase of 5.0% compared to the end of the previous year, while the net assets attributable to shareholders rose by 4.0% to 108.8 billion yuan [3] - The earnings per share (EPS) for the quarter was 0.59 yuan, with a book value per share (BVPS) of 18.52 yuan [3] Revenue Breakdown - The net income from brokerage, investment banking, asset management, and proprietary trading for the first three quarters showed year-on-year changes of -27%, -21%, -12%, and +7% respectively [3] - The company’s interest income was reported at -1.19 billion yuan, compared to -0.83 billion yuan in the same period last year [3] - The management expenses for the first three quarters totaled 10.26 billion yuan, a decrease of 15% year-on-year, with a management expense ratio of 76.3%, up 7.0 percentage points year-on-year [3] Future Earnings Forecast - The forecast for net profit attributable to shareholders for 2024, 2025, and 2026 has been adjusted to 4.18 billion yuan, 4.53 billion yuan, and 4.97 billion yuan respectively, reflecting year-on-year changes of -32%, +8%, and +10% [5] - The projected operating revenue for 2024 is 19.052 billion yuan, with a year-on-year decline of 17.1% [6] Market Position and Strategy - The company is expected to maintain its competitive advantage in investment banking and trading, with a focus on enhancing its professional capabilities [5] - The report highlights the importance of the company's differentiated competitive strength in the context of ongoing market challenges [5]