CMS(SH:600999) Zhongyuan Securities·2025-04-10 09:20Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected increase in stock price relative to the market index [6][26][33]. Core Views - The company achieved a revenue of 20.891 billion yuan in 2024, representing a year-on-year increase of 5.40%, and a net profit attributable to shareholders of 10.386 billion yuan, up 18.51% year-on-year [5][8]. - The report highlights that while the overall market share in equity trading has slightly declined, the brokerage business remains among the top five in the industry [6][26]. - The company is expected to benefit from government policies aimed at fostering strong firms and limiting weaker ones, positioning it well for future growth [6][26]. Summary by Sections Financial Performance - In 2024, the company reported a basic earnings per share (EPS) of 1.13 yuan, a 20.21% increase year-on-year, and a return on equity (ROE) of 8.82%, up 0.91 percentage points [5][8][31]. - The proposed dividend for 2024 is 3.77 yuan per share (before tax), with a total dividend payout ratio of 40.02% of the net profit attributable to shareholders, an increase of 15 percentage points year-on-year [8][31]. Business Segments - The brokerage and investment income (including fair value changes) have increased in proportion, while the investment banking and asset management segments have seen a decline in their revenue contributions [5][9]. - The company’s brokerage business net income increased by 11.79% year-on-year, despite a slight decrease in market share to 4.51% [11][12]. - The investment banking segment experienced a significant decline in revenue, with a 34.25% drop in net income from fees, attributed to a decrease in equity financing activities [13][26]. Investment Strategy - The company has successfully enhanced its investment strategies, focusing on high-dividend investments and diversified approaches, leading to a 33.23% increase in investment income [22][26]. - The report anticipates EPS of 1.16 yuan and 1.22 yuan for 2025 and 2026, respectively, with corresponding book value per share (BVPS) of 14.00 yuan and 14.79 yuan [6][26][31].