HTSC(601688) Guotai Junan Securities·2024-10-31 17:07Investment Rating - The report maintains an "Accumulate" rating for the company [4][10]. Core Views - The sale of Assetmark significantly boosts earnings, and the company is expected to benefit from improving capital market policies and ongoing supply-side reforms in the industry [2][10]. - The company's investment business net income increased by 39.24% year-on-year to 136.5 billion yuan, contributing significantly to revenue growth [10]. - The report highlights the company's strong financial technology capabilities, enhancing its service offerings and competitive advantages in wealth management and institutional client services [10]. Financial Summary - The target price is set at 20.86 yuan, corresponding to a 2024 PE of 12.09x and a PB of 1.03x [4][10]. - For the first three quarters of 2024, the company reported revenue and net profit attributable to shareholders of 314.24 billion yuan and 125.21 billion yuan, respectively, representing year-on-year growth of 15.41% and 30.63% [10]. - The report adjusts the 2024 earnings per share (EPS) forecast to 1.73 yuan, up from 1.23 yuan, while lowering the 2025-2026 EPS forecasts to 1.33 yuan and 1.43 yuan, respectively [10]. - The company’s net asset value per share is reported at 19.95 yuan, with a current price of 17.41 yuan, indicating a price-to-book ratio of 0.9 [6][10]. Market Data - The total market capitalization is 157,165 million yuan, with a 52-week stock price range of 11.88 to 19.36 yuan [5]. - The company’s average return on equity (ROE) for 2024 is projected to be 8.0%, up from 7.0% in 2023 [13].