CMS(600999) 华泰证券·2025-03-28 06:52Investment Rating - The investment rating for the company is "Buy" for both A and H shares, maintaining the previous rating [8]. Core Views - The company's 2024 performance shows a revenue of 20.891 billion RMB, a year-on-year increase of 5.40%, and a net profit attributable to shareholders of 10.386 billion RMB, up 18.51% year-on-year. The fourth quarter alone saw a revenue of 6.612 billion RMB, a significant increase of 33% year-on-year and 41% quarter-on-quarter [1][2]. - Investment business is identified as the core driver of growth, with annual investment income reaching a record high of 9.5 billion RMB, a 42% increase year-on-year, accounting for 46% of total revenue [2][3]. - The brokerage and asset management businesses continue to show growth, benefiting from market recovery, with net income from brokerage services increasing by 12% year-on-year [3]. - The investment banking and credit business saw a decline, with net income from investment banking down 34% year-on-year due to a significant drop in IPO and refinancing activities [4]. Summary by Sections Financial Performance - The company reported a total revenue of 20.891 billion RMB for 2024, with a year-on-year growth of 5.40%. The net profit attributable to shareholders was 10.386 billion RMB, reflecting an 18.51% increase [1][7]. - The investment business generated 9.5 billion RMB in revenue, marking a 42% increase year-on-year and contributing 46% to total revenue [2]. Business Segments - Brokerage business net income reached 6.2 billion RMB, up 12% year-on-year, while asset management business net income was stable at 700 million RMB, a 1% increase [3]. - The investment banking segment faced challenges, with net income dropping to 860 million RMB, a 34% decline year-on-year due to reduced market activity [4]. Profit Forecast and Valuation - The earnings per share (EPS) forecast for 2025 is set at 1.36 RMB, with a projected book value per share (BPS) of 15.78 RMB. The target price is set at 23.91 RMB for A shares and 17.27 HKD for H shares, reflecting a premium to the expected price-to-book (PB) ratio [5][8].