Huachuang Securities·2025-05-02 05:14Investment Rating - The report maintains a "Recommendation" rating for Dongfang Securities (600958) with a target price of 11.87 CNY [1]. Core Views - The performance of Dongfang Securities slightly exceeded expectations, with total operating revenue (excluding other business income) reaching 3.9 billion CNY, a year-on-year increase of 57.3%. The net profit attributable to the parent company was 1.44 billion CNY, up 62% year-on-year [1]. Financial Summary - Main revenue (million CNY) for 2024A is projected at 19,190, with a year-on-year growth rate of 12%. For 2025E, it is expected to be 21,109 million CNY, with a growth rate of 10%. The net profit attributable to the parent company is forecasted to be 3,350 million CNY for 2024A, increasing to 3,827 million CNY in 2025E, reflecting a growth rate of 22% and 14% respectively [4]. - Earnings per share (EPS) is projected to be 0.37 CNY for 2024A, increasing to 0.45 CNY in 2025E, and further to 0.50 CNY in 2026E [4]. - The price-to-earnings ratio (P/E) is expected to decrease from 24.8 in 2024A to 20.3 in 2025E, and further down to 18.2 in 2026E [4]. - The price-to-book ratio (P/B) is projected to be 1.02 in 2024A, decreasing to 1.00 in 2025E, and further to 0.98 in 2026E [4]. Business Performance - The report highlights that the company's self-operated business income reached 2.11 billion CNY, with a quarterly self-operated return rate of 2.2%, showing a significant increase compared to previous periods [8]. - The brokerage business revenue was reported at 700 million CNY, with a year-on-year increase of 44.6% [8]. - Investment banking revenue was 320 million CNY, showing a year-on-year increase of 0.5 billion CNY [8]. Market Outlook - The report expresses optimism regarding the company's growth opportunities in the context of industry supply-side reforms and the anticipated market recovery [8]. - The expected EPS for 2025, 2026, and 2027 is projected to be 0.45 CNY, 0.50 CNY, and 0.58 CNY respectively, with corresponding BPS of 9.13 CNY, 9.34 CNY, and 9.53 CNY [8].