Zheshang Securities(601878) Soochow Securities·2025-04-11 12:23Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock's performance in the near term [8]. Core Insights - The company's performance in 2024 was driven by proprietary trading, with total revenue of 15.82 billion yuan, a year-on-year decrease of 10.3%, while net profit attributable to shareholders increased by 10.2% to 1.93 billion yuan [8]. - The report highlights significant growth in agency trading income, with a net income of 1.20 billion yuan, reflecting a year-on-year increase of 22% [8]. - The investment banking segment faced challenges, with revenues declining by 17.9% to 720 million yuan, primarily due to a tightening equity financing market [8]. - Asset management revenue saw a slight decline of 6.2%, but the total asset management scale increased by 4.6% to 953 billion yuan [8]. - The company achieved substantial growth in investment income, which rose by 69.3% to 1.74 billion yuan, benefiting from effective asset allocation strategies [8]. Financial Forecast - The report projects net profits for 2025, 2026, and 2027 to be 2.17 billion yuan, 2.30 billion yuan, and 2.54 billion yuan respectively, with corresponding year-on-year growth rates of 12.05%, 6.16%, and 10.56% [8]. - Earnings per share (EPS) are expected to be 0.47 yuan, 0.59 yuan, and 0.66 yuan for the years 2025, 2026, and 2027 respectively [8]. - The current market capitalization corresponds to a price-to-book (PB) ratio of approximately 1.11x, 1.07x, and 1.02x for the years 2025, 2026, and 2027 [8].