Beijing (SZ:300803) Changjiang Securities·2024-11-19 02:28Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company reported a total revenue of 231 million yuan for Q3 2024, representing a year-over-year increase of 34.50%. However, the net profit attributable to shareholders was -61 million yuan, a decrease of 3.53% year-over-year. For the first three quarters of 2024, total revenue reached 776 million yuan, up 13.61% year-over-year, while the net profit attributable to shareholders was -110 million yuan, a significant decline of 171.18% year-over-year [5][6]. - The growth in revenue for the first three quarters of 2024 was primarily driven by the performance of Maigao Securities. The company's financial information services are highly correlated with the capital market's performance, particularly the total trading volume in the securities market, which has seen a decline compared to the previous year, negatively impacting the financial information services business [5][7]. - Maigao Securities continued to experience rapid growth in its brokerage and proprietary trading businesses, with net commission income of 135 million yuan, a year-over-year increase of 125.92%, and net interest income of 46 million yuan, up 92.70% year-over-year. As of the end of the reporting period, the amount of securities bought and sold on behalf of clients reached 5.22 billion yuan, an increase of 116.60% compared to the end of the previous year [5][6]. - The increase in expenses, particularly in sales and marketing, along with a decline in financial information service revenue, were the main reasons for the drop in profits. The company has focused on expanding brand promotion and customer acquisition, which has led to increased advertising and personnel costs [7][8]. - The market environment has impacted the company's performance, but the company is leveraging its business synergies to enhance its core competitiveness, particularly through Maigao Securities, which is seen as a second growth driver. Revenue projections for 2024-2026 are 1.367 billion yuan, 1.775 billion yuan, and 2.081 billion yuan, respectively, with net profits of 122 million yuan, 292 million yuan, and 455 million yuan, corresponding to PE ratios of 312.49, 131.21, and 84.07 [8][10]. Financial Summary - For 2024E, the company is projected to achieve total revenue of 1.367 billion yuan, with a gross profit margin of 89%. The operating expenses are expected to be 725 million yuan, representing 53% of total revenue [19]. - The net profit for 2024E is forecasted to be 122 million yuan, with an EPS of 0.30 yuan. The company’s total assets are projected to reach 5.623 billion yuan by 2024E [19].