HTSC(601688) 民生证券·2025-04-01 10:23Investment Rating - The report maintains a "Recommended" rating for Huatai Securities [10] Core Views - In 2024, Huatai Securities achieved a record high in both operating revenue and net profit attributable to shareholders, with revenues of 41.5 billion yuan, up 13.4% year-on-year, and net profit of 15.4 billion yuan, up 20.4% year-on-year [1][10] - The growth in credit net income significantly improved, with a year-on-year increase of 184%, while brokerage income turned positive with an 8% increase [2][10] - The company is expected to continue benefiting from a recovering capital market, with projected revenues of 45 billion yuan in 2025 and net profits of 16.6 billion yuan [10] Summary by Sections Financial Performance - In 2024, Huatai Securities reported total operating revenue of 41.5 billion yuan, a 13.4% increase year-on-year, and a net profit of 15.4 billion yuan, a 20.4% increase year-on-year, both setting historical records [1] - The fourth quarter of 2024 saw a revenue of 10 billion yuan, a 28.2% decrease quarter-on-quarter but a 7.4% increase year-on-year [1] Business Segments - The revenue breakdown for 2024 was as follows: proprietary trading 14.5 billion yuan (+24%), brokerage 6.4 billion yuan (+8%), asset management 4.1 billion yuan (-3%), credit 2.7 billion yuan (+184%), and investment banking 2.1 billion yuan (-31%) [2] - The brokerage business saw a significant increase in net income, with a 99.7% increase quarter-on-quarter and an 86.1% increase year-on-year in Q4 2024 [4] Asset Management - The asset management business net income in Q4 2024 was 1.1 billion yuan, a 36.9% increase quarter-on-quarter and a 0.5% increase year-on-year [5] - The total asset management scale reached 556.3 billion yuan by the end of 2024, a 17% year-on-year increase [6] Credit Business - The net interest income for Q4 2024 was 1.4 billion yuan, marking a 13.55-fold increase year-on-year [7] - The financing and securities lending balance reached 130.1 billion yuan, the highest since 2021, with a year-on-year increase of 6.2% [7] Investment Banking - The investment banking revenue for Q4 2024 was 0.7 billion yuan, a 73.5% increase quarter-on-quarter but a slight decrease of 0.8% year-on-year [8] - The total bond underwriting amount for 2024 was 680.3 billion yuan, maintaining growth [8] Profitability Metrics - The return on equity (ROE) increased to 9.2%, and the net profit margin reached 37%, the highest since 2017 [9] - The company expects to achieve revenues of 45 billion yuan in 2025, with a projected PE ratio of 9 [10]