HTSC(601688) Caixin Securities·2024-11-12 02:44Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved operating revenue of 314.24 billion yuan in Q3 2024, a year-on-year increase of 15.4%, and a net profit attributable to shareholders of 125.21 billion yuan, up 30.6% year-on-year [4][5] - The sale of AssetMark is expected to enhance the company's financial position, with an estimated revenue of 56.43 billion yuan from the transaction [5][6] - The company is expanding its international business, particularly in Southeast Asia, which is anticipated to strengthen its competitive edge [6] Summary by Relevant Sections Financial Performance - For Q3 2024, the company reported a quarterly revenue of 139.83 billion yuan, with year-on-year and quarter-on-quarter growth rates of 57.8% and 23.4%, respectively [4] - The net profit for Q3 was 72.1 billion yuan, reflecting a significant year-on-year increase of 138.0% and a quarter-on-quarter increase of 138.7% [4] - The company's total assets and net assets as of Q3 2024 were 8,474.58 billion yuan and 1,855.55 billion yuan, showing a year-on-year decrease of 2.37% and an increase of 7.83%, respectively [4] Revenue Breakdown - The company's revenue from proprietary trading, brokerage, investment banking, capital intermediation, and asset management for the first three quarters was 120.39 billion yuan (+56.9%), 39.66 billion yuan (-14.3%), 13.57 billion yuan (-40.8%), 13.01 billion yuan (+52.0%), and 30.33 billion yuan (-3.7%), respectively [5] - The company’s other business revenue reached 73.42 billion yuan, a year-on-year increase of 142.5% [5] Profitability Forecast - The forecasted net profits for 2024, 2025, and 2026 are 155.86 billion yuan, 144.55 billion yuan, and 154.26 billion yuan, respectively, with growth rates of +22.24%, -7.26%, and +6.72% [6][7] - The report suggests a reasonable price range of 21.02 yuan to 24.52 yuan based on a projected price-to-book ratio of 1.2 to 1.4 for 2024 [6]