Changjiang Securities·2025-04-01 08:12Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company's brokerage and proprietary trading businesses performed exceptionally well in 2024, driving significant profit growth. The long-term outlook remains positive as the company, as an industry leader, continues to expand in institutional brokerage and trading, leveraging its resource advantages to gradually develop derivatives and related businesses [2][11]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 43.397 billion yuan, a year-on-year increase of 20.1%, and a net profit attributable to shareholders of 13.024 billion yuan, up 38.9%. The weighted average return on equity (ROE) increased by 2.12 percentage points to 8.1% [6][11]. - The company's brokerage, investment banking, asset management, interest income, and proprietary trading revenues were 7.843 billion, 2.922 billion, 3.893 billion, 2.357 billion, and 15.075 billion yuan, respectively, with year-on-year changes of +15.5%, -20.8%, -5.0%, -15.9%, and +58.6% [11]. Market Position - The company’s market share in brokerage services improved, with a daily average trading volume of 1,210.187 billion yuan in stock-based transactions, reflecting a 22.0% year-on-year increase. The brokerage business revenue growth was in line with market growth, maintaining a stable market share and commission rate [11]. - The company ranked fourth in the industry for IPOs, with an equity financing scale of 16.327 billion yuan, down 71.2% year-on-year, while its bond financing scale reached 980.386 billion yuan, up 23.2% year-on-year, securing a solid third place in market share [11]. Asset Management - As of the end of 2024, the company’s total asset management scale was 588.430 billion yuan, a year-on-year increase of 6.5%. The public fund management scale of Huazhong Fund was 772.405 billion yuan, up 14.4% year-on-year, contributing 3.43% to the group's net profit [11]. Investment Strategy - The company is expected to achieve net profits attributable to shareholders of 13.293 billion and 14.410 billion yuan in 2025 and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 21.34 and 19.69, and price-to-book (PB) ratios of 1.57 and 1.46 [11].