Soochow Securities·2024-11-01 04:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a total revenue of 19.1 billion yuan for Q3 2024, a year-on-year increase of 6%, and a net profit attributable to shareholders of 6.8 billion yuan, up 16% year-on-year [1] - The self-operated business showed strong performance, with self-operated income increasing significantly due to favorable market conditions [1] - The investment banking segment, particularly in debt underwriting, performed well despite a challenging market environment [1] Summary by Sections Revenue and Profitability - Total revenue for 2022 was 25.132 billion yuan, with a decline of 26.62% year-on-year, while 2023 revenue is projected at 23.3 billion yuan, a further decline of 7.29% [1] - Net profit attributable to shareholders was 7.929 billion yuan in 2022, down 26.95%, with a projected recovery to 8.137 billion yuan in 2024, reflecting a growth of 16.61% [1] - The latest diluted EPS for 2023 is 0.92 yuan, with projections of 1.07 yuan for 2024 and 1.29 yuan for 2025 [1] Business Segments - The self-operated business revenue for Q1-Q3 2024 increased by 113% year-on-year to 5.9 billion yuan, contributing 31% to total revenue [1] - Interest income from capital intermediary services declined significantly, with a 45% drop in Q1 and a 36% drop in Q3 compared to the previous year [1] - Brokerage income showed a slight decline, with net income from brokerage fees down 11% year-on-year in Q1 and 15% in Q3 [1] - The investment banking segment saw a 46% increase in debt underwriting revenue, outperforming the market [1] Market Position and Future Outlook - The company has been approved to participate in the first batch of swap convenience operations, enhancing its market capabilities [1] - The report projects net profits for 2024, 2025, and 2026 to be 81 billion yuan, 98 billion yuan, and 118 billion yuan respectively, indicating a positive growth trajectory [1] - The current market capitalization corresponds to a price-to-book ratio of 0.83 for 2024, suggesting potential undervaluation [1]