HTSC(601688) Ping An Securities·2024-10-31 06:00Investment Rating - The investment rating for the company is "Recommended (Maintain)" [1] Core Views - The company's Q3 performance was significantly boosted by the sale of its subsidiary AssetMark, leading to a substantial increase in revenue and net profit [4][7] - The company reported total revenue of 314.24 billion yuan for Q3, a year-on-year increase of 15.41%, and a net profit of 125.21 billion yuan, up 30.63% year-on-year [1] - The sale of AssetMark contributed 62.26 billion yuan to the net profit, while excluding this non-recurring gain, the revenue for Q3 would have been 77 billion yuan, reflecting a year-on-year decrease of 12% [4] Financial Summary - For Q3 2024, the company achieved a single-quarter revenue of 140 billion yuan, representing a year-on-year increase of 58% and a quarter-on-quarter increase of 23% [4] - The company's total assets stood at 847.5 billion yuan, with a total equity of 185.6 billion yuan, reflecting a 4% increase from the end of the previous year [1] - The annualized ROE for the first three quarters of 2024 was 9.16%, an increase of 1.6 percentage points year-on-year [4] Business Segment Performance - The company's brokerage, investment banking, asset management, proprietary trading, and other income segments reported year-on-year changes of -14%, -41%, -4%, +52%, and +57% respectively [4] - The asset management business showed resilience, with the company's public fund subsidiary ranking fifth in the industry with a management scale of 663.1 billion yuan, a 36% increase from the end of the previous year [4][7] Future Outlook - The company has raised its net profit forecasts for 2024, 2025, and 2026 to 157 billion yuan, 120 billion yuan, and 129 billion yuan respectively, reflecting year-on-year changes of +23%, -23%, and +7% [7] - The current stock price corresponds to a 2024 PB of 1.01 times, indicating a favorable valuation relative to its performance [7]