Changjiang Securities·2024-11-04 02:44Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company's Q3 2024 profit saw a significant year-on-year increase, primarily driven by proprietary trading. The long-term outlook remains positive as the company continues to expand in institutional brokerage and trading services, leveraging its resource advantages to develop derivative and supporting businesses [3][5]. Summary by Relevant Sections Financial Performance - In Q3 2024, the company achieved operating revenue of 29.001 billion yuan, a year-on-year increase of 7.3%, and a net profit attributable to shareholders of 9.523 billion yuan, up 10.4%. The weighted average return on equity (ROE) increased by 0.35 percentage points to 5.97% [3][4]. - For the first three quarters of 2024, the company's revenue and net profit were 29.001 billion yuan and 9.523 billion yuan, respectively, with year-on-year growth rates of 7.3% and 10.4%. The Q3 2024 single-quarter revenue and net profit were 11.931 billion yuan and 4.507 billion yuan, reflecting increases of 37.2% and 56.2% year-on-year [3][4]. Business Segments - The brokerage business maintained a stable market share, while the credit business saw a slight decline. The average daily trading volume for the market in the first three quarters was 797.3 billion yuan, down 10.6% year-on-year, and the company's brokerage revenue for the same period decreased by 12.7% [4]. - The company's proprietary trading revenue in Q3 2024 surged by 123.0% to 5.862 billion yuan, marking it as the main driver of profit growth [3][5]. - The asset management business faced some pressure, with net income for Q3 2024 at 0.941 billion yuan, down 9.1% year-on-year, primarily due to high base effects [5]. Market Outlook - The company is expected to achieve net profits of 9.844 billion yuan and 11.913 billion yuan for 2024 and 2025, respectively, with corresponding price-to-earnings (PE) ratios of 16.88 and 13.95, and price-to-book (PB) ratios of 1.06 and 0.98 [5].