CGS(SH:601881) Soochow Securities·2025-03-29 13:19Investment Rating - The report assigns a "Buy" rating for the company, indicating a strong expectation for future stock performance [1]. Core Insights - The company achieved a total revenue of 35.471 billion yuan in 2024, representing a year-on-year growth of 5.4%. The net profit attributable to shareholders reached 10.031 billion yuan, a significant increase of 27.3% compared to the previous year [8]. - The brokerage and margin trading businesses benefited from an active market, with brokerage revenue increasing by 12.5% year-on-year, accounting for 27.2% of total revenue. The average daily trading volume in the market rose by 23.1% [8]. - The investment banking segment showed resilience, with total investment banking revenue increasing by 10.6% year-on-year, despite a decline in equity underwriting [8]. - The asset management business also saw revenue growth of 6.1%, although the total asset management scale decreased by 9.9% [8]. - The company's proprietary trading segment performed exceptionally well, with net investment income increasing by 50.2% year-on-year [8]. - The report forecasts net profits for 2025-2027 to be 12.639 billion yuan, 13.513 billion yuan, and 14.217 billion yuan, respectively, with corresponding year-on-year growth rates of 26%, 7%, and 5% [8]. Financial Summary - Total revenue for 2023 was 33.646 billion yuan, with a projected increase to 39.653 billion yuan by 2025, reflecting a compound annual growth rate [15]. - The earnings per share (EPS) for 2024 is estimated at 0.81 yuan, with projections of 1.16 yuan and 1.24 yuan for 2025 and 2026, respectively [1]. - The price-to-earnings (P/E) ratio is expected to decrease from 18.18 in 2023 to 10.23 by 2025, indicating a potentially undervalued stock [1].