FCSC(SZ:002797) Guoxin Securities·2024-03-02 16:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking the first coverage of this rating [4]. Core Views - The company is positioned to leverage its diversified ownership structure and the strategic support from its largest shareholder, Beijing State Capital Operation Management Co., to enhance its business capabilities and market flexibility [11][12]. - The dual-driven strategy of "Fixed Income + Asset Management" is expected to strengthen the company's service capabilities for institutional clients, capitalizing on the growth of the bond market in China [11][18]. - The company anticipates a second growth phase in its North Exchange business, focusing on project reserves and issuance for various hard technology and innovative growth enterprises [11][19]. Summary by Sections Company Overview - The company has a diversified ownership structure, with Beijing State Capital becoming the largest shareholder in May 2023, which is expected to enhance strategic collaboration and business advantages [11][12]. - As of September 2023, the company had total assets of 513.02 billion and net assets of 154.63 billion, showing a continuous growth trend [9]. Business Analysis - The company has established a solid foundation for business development, with steady growth in asset management, fixed income, investment banking, and brokerage services [25]. - In the first three quarters of 2023, the company achieved operating income of 1.913 billion, a slight increase of 0.05% year-on-year, while net profit attributable to shareholders was 328 million, a decrease of 3.67% [25][27]. Financial Forecast - The company forecasts earnings per share of 0.11, 0.14, and 0.15 yuan for 2023, 2024, and 2025, respectively, with net profits attributable to shareholders expected to be 459 million, 591 million, and 645 million yuan [2][4]. - The projected net profit growth rates are 14.6%, 28.6%, and 9.2% for the respective years [2]. Industry Analysis - The report highlights a shift in the securities industry towards capital intermediation and investment, with a competitive landscape characterized by leading comprehensive brokers and differentiated development among smaller brokers [17]. - The fixed income sector is identified as a new growth area, with increasing demand for stable investment products amid ongoing financial reforms in China [18].