Orient Securities(600958) 开源证券·2025-03-31 11:48Investment Rating - The investment rating for Dongfang Securities is "Buy" (maintained) [1] Core Views - The company reported total operating revenue and net profit attributable to shareholders of 19.19 billion and 3.35 billion yuan for 2024, representing year-on-year growth of 12.3% and 21.7% respectively. The annualized weighted average ROE is 4.14%, up by 0.69 percentage points year-on-year. The forecast for net profit attributable to shareholders for 2025-2027 is adjusted to 5 billion, 6.4 billion, and 7.6 billion yuan, reflecting year-on-year growth of 51%, 27%, and 18% respectively, with corresponding EPS of 0.6, 0.8, and 0.9 yuan. The company has a competitive advantage with its asset management brands, Oriental Asset Management and Huatai-PineBridge, and is focusing on deepening wealth management transformation [4][6][7]. Summary by Sections Financial Performance - In 2024, Dongfang Securities' total revenue was 19.19 billion yuan, with a year-on-year increase of 12.3%. The net profit attributable to shareholders was 3.35 billion yuan, up 21.7% year-on-year. The gross margin improved to 18.4% and the net margin to 17.5% [4][7][10]. - The company’s self-operated investment income reached 4.9 billion yuan in 2024, a significant increase of 106% year-on-year, with a self-operated investment return rate of 4.41%, up by 2.1 percentage points year-on-year [6][7]. Asset Management and Market Position - Dongfang Securities' asset management revenue decreased to 1.44 billion yuan, down 30% year-on-year, while net profit fell by 32% to 330 million yuan. The market share for non-monetary and equity AUM was 0.73% and 1.15%, respectively [5]. - Huatai-PineBridge reported a revenue of 4.83 billion yuan, with a net profit of 1.55 billion yuan, reflecting a 9% increase year-on-year [5]. Brokerage and Investment Banking - The brokerage business net income decreased by 10% year-on-year, with the buy-side service model maturing and fund advisory business growing to 15.37 billion yuan, up 7.05% year-on-year [6]. - The investment banking segment saw a 23% decline in net income, primarily due to a sluggish IPO market, while the bond underwriting business increased by 36% year-on-year, ranking 6th in the market [6]. Valuation Metrics - The current stock price corresponds to a PB ratio of 1.04, 0.98, and 0.91 for 2025-2027, indicating a favorable valuation outlook [4][7].