CICC(601995) 华泰证券·2025-03-30 04:00Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company [8] Core Views - The company reported a revenue of 21.33 billion RMB for 2024, a year-on-year decrease of 7.21%, and a net profit attributable to the parent company of 5.694 billion RMB, down 7.50% year-on-year, which exceeded expectations [1] - The fourth quarter showed a significant recovery with a revenue of 7.884 billion RMB, up 42.71% year-on-year and 73.71% quarter-on-quarter, and a net profit of 2.836 billion RMB, up 83.16% year-on-year and 350.11% quarter-on-quarter [1] - The company expects continued operational recovery in the future [1] Summary by Sections Financial Performance - The investment business generated 10.121 billion RMB in revenue, down 4% year-on-year, accounting for 47% of total revenue [2] - Brokerage business net income was 4.263 billion RMB, down 6% year-on-year, while the investment banking business saw a 16% decline to 3.095 billion RMB [2] - Asset management net income remained relatively stable at 1.209 billion RMB, down 0.3% year-on-year [2] Q4 Performance - In Q4 2024, the light capital business showed a significant recovery, with brokerage business net income reaching 1.702 billion RMB, up 68% year-on-year and 115% quarter-on-quarter [3] - Investment banking net income was 1.032 billion RMB, down 4% year-on-year but up 32% quarter-on-quarter [3] - Asset management net income increased by 41% year-on-year to 371 million RMB [3] Asset Allocation - The company's total assets increased by 8% year-on-year, with financial investments up 6% [4] - The leverage ratio remained stable at 4.98x as of Q4 2024, down 0.2x year-on-year [4] - Equity investments decreased by 23% to 108 billion RMB, while fixed income investments surged by 45% to 225.4 billion RMB [4] Earnings Forecast and Valuation - The report projects EPS for 2025, 2026, and 2027 to be 1.40, 1.62, and 1.79 RMB respectively, with a BPS of 25.05 RMB for 2025 [5] - The target price for A and H shares is set at 47.60 RMB and 24.43 HKD respectively, reflecting a premium PB of 1.9 and 0.9 times [5]