EBSCN·2024-10-31 07:00Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company has shown a recovery in performance with significant contributions from proprietary trading, achieving a revenue of 29 billion yuan in the first three quarters of 2024, a year-on-year increase of 7.3% [4][5] - The net profit attributable to shareholders for the same period reached 9.52 billion yuan, up 10.4% year-on-year, with a notable increase in Q3 [5] - The revenue structure has shifted significantly, with proprietary trading accounting for 37.7% of total revenue, reflecting an 8.0% increase year-on-year [5] Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 290 billion yuan, with Q3 alone contributing 119.3 billion yuan, marking a 37.2% year-on-year increase [5] - The net profit for Q3 was 4.51 billion yuan, showing a 56.2% increase year-on-year [5] - The weighted average ROE for the first three quarters was 5.97%, an increase of 0.35 percentage points from the previous year [4] Revenue Breakdown - Revenue contributions from various segments for the first three quarters of 2024 were as follows: proprietary trading (37.7%), brokerage (15.4%), investment banking (6.2%), asset management (9.9%), and credit business (5.4%) [5] - The brokerage business faced challenges, with net income declining by 12.7% year-on-year due to a decrease in trading volume in the A-share market [5] - Investment banking revenue dropped significantly by 32.3% year-on-year, impacted by a slowdown in IPOs and refinancing activities [5] Future Outlook - The company is expected to benefit from capital market reforms, with projected net profits for 2024, 2025, and 2026 estimated at 13.92 billion, 15.53 billion, and 17.02 billion yuan respectively, reflecting substantial upward revisions [5] - The report anticipates an increase in earnings per share (EPS) to 1.56 yuan in 2024, with a corresponding price-to-earnings (P/E) ratio of 11.94 [5][9]