Industrial Securities(601377) Changjiang Securities·2024-11-01 01:44Investment Rating - The investment rating for the company is maintained as "Buy" [7][8]. Core Views - The company's performance in the first three quarters of 2024 is under pressure, but its long-term wealth management advantages are highlighted, with robust growth in asset management and strong self-investment performance [5][6][7]. - Looking ahead, the company is expected to leverage business synergies in wealth management and accelerated institutionalization to drive growth as the market recovers [7]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved operating revenue and net profit attributable to shareholders of 8.81 billion and 1.32 billion yuan, respectively, representing year-on-year changes of -0.5% and -16.5% [3][7]. - The weighted average return on equity (ROE) decreased by 3.88 percentage points year-on-year to 2.31% [7]. - In Q3 alone, the company reported revenue and net profit of 3.419 billion and 380 million yuan, showing year-on-year increases of 78.3% and 276.0% [7]. Business Segments - Brokerage and investment banking businesses are under pressure due to market conditions, with brokerage revenue down 26.0% year-on-year to 1.31 billion yuan [5][7]. - The asset management business showed steady growth, with revenue of 12 million yuan, up 6.0% year-on-year [6][7]. - Self-investment income surged by 165.2% year-on-year to 2.22 billion yuan, with Q3 alone contributing 1.03 billion yuan, marking a return to profitability [6][7]. Market Outlook - The company anticipates a recovery in the market, which will enhance its growth potential through synergistic effects in wealth management and institutionalization [7]. - Projected net profits for 2024 and 2025 are 2.063 billion and 2.340 billion yuan, corresponding to price-to-earnings (PE) ratios of 27.09 and 23.88 times, and price-to-book (PB) ratios of 0.96 and 0.92 times, respectively [7].