Nanhua Futures(SH:603093) East Money Securities·2025-12-17 11:37Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [6] Core Insights - The company has established a diversified business model that is showing strong operational performance compared to industry averages, with a focus on overseas financial services driving growth [14][21] - The overseas business has become the primary revenue source, contributing approximately 55% of total revenue in the first half of 2025, with a significant increase in margin from 2% in 2021 to 90% in 2024 [4][44] - The company has a robust overseas licensing system, having obtained 16 memberships from major global exchanges, which provides a competitive edge in the market [36][38] Summary by Relevant Sections Business Overview - The company has developed a comprehensive derivatives service platform, leveraging its historical background and expanding into overseas markets since 2006 [14][17] - The company has achieved a compound annual growth rate (CAGR) of over 40% in net profit over the past five years, with a notable increase in profitability [4][21] Revenue Structure - In 2024, the company generated revenues of 1.32 billion yuan, with net profits of 458 million yuan, indicating a strong performance despite industry challenges [4][21] - The overseas financial services segment is the largest contributor to gross profit, accounting for approximately 90% in 2024, while domestic brokerage and risk management also play significant roles [22][44] Growth Drivers - The overseas business is expected to continue its rapid growth, driven by increasing demand for risk management and the expansion of customer deposits, which rose from 3.67 billion yuan in 2021 to 10.20 billion yuan in 2024 [4][44] - The company has successfully diversified its product offerings, including the development of innovative financial products and expanding its wealth management services, which saw significant growth in assets under management [5][42] Financial Projections - The company forecasts revenues of 1.47 billion yuan for 2025, with net profits expected to reach 493 million yuan, reflecting a growth trajectory despite a projected decline in revenue due to accounting changes [6][7] - The price-to-earnings (P/E) ratio is projected to decrease from 23.69 in 2025 to 17.38 by 2027, indicating potential for value appreciation [6][7]