HTSC(601688) Guolian Securities·2024-11-01 13:37Investment Rating - The investment rating for Huatai Securities is "Buy" (maintained) [3]. Core Views - Huatai Securities reported a significant increase in revenue and net profit for the third quarter of 2024, driven by the sale of AssetMark, which contributed 5.649 billion yuan to the company's earnings [6][5]. - The company achieved a total revenue of 31.4 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 15%, and a net profit of 12.5 billion yuan, up 31% year-on-year [2][5]. - The report indicates that the company's financial performance is expected to improve as market conditions recover, maintaining its leading position in wealth management [6]. Summary by Sections Financial Performance - For Q3 2024, Huatai Securities achieved revenue of 14 billion yuan, a year-on-year increase of 58% and a quarter-on-quarter increase of 23%. The net profit for the same period was 7.2 billion yuan, reflecting a year-on-year increase of 138% and a quarter-on-quarter increase of 139% [5][6]. - Excluding the gains from the sale of AssetMark, the company's revenue for Q3 2024 would have decreased by 5.9% year-on-year, and net profit would have dropped by 48.5% year-on-year [6]. Business Segments - The brokerage business generated revenue of 3.97 billion yuan in the first three quarters of 2024, down 14.3% year-on-year, while asset management revenue was 3.03 billion yuan, down 3.7% year-on-year [6]. - Investment income for the first three quarters of 2024 was 11.86 billion yuan, up 19.7% year-on-year, with a significant increase in Q3 due to the sale of AssetMark [6]. Future Outlook - Revenue projections for Huatai Securities for 2024-2026 are estimated at 37.14 billion yuan, 36.68 billion yuan, and 37.77 billion yuan, respectively, with expected net profits of 14.13 billion yuan, 11.49 billion yuan, and 13.48 billion yuan [7]. - The company is expected to maintain its competitive edge in the wealth management sector, with performance anticipated to improve as market conditions stabilize [6].