2024-03-04 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6][19] Core Views - The company reported a revenue of HKD 20.516 billion for 2023, representing a year-on-year increase of 11%, and a net profit attributable to shareholders of HKD 11.862 billion, up 18% year-on-year [6][8] - The growth in performance is attributed to record net investment income from margin and clearing funds, as well as increased trading and settlement fees from LME [6] - The average daily trading volume in the cash market decreased by 16% year-on-year to HKD 1,050 billion, with a decline in IPOs and trading fee income affected by reduced A-share trading fees and RMB depreciation [6][7] - The derivatives segment achieved a record average daily trading volume, with revenue from the securities and financial derivatives segment increasing by 23% year-on-year [6][7] - The reasonable valuation range for the company is estimated to be between HKD 320.00 and HKD 333.40, corresponding to a 2024E PE of 30.7-31.9 times [7][19] Summary by Sections Financial Performance - In 2023, the company achieved total revenue of HKD 20,516 million, with a year-on-year growth of 11% [8] - The net profit for 2023 was HKD 11,862 million, reflecting an 18% increase compared to the previous year [8] - The earnings per share (EPS) for 2023 was HKD 9.36, with projections for 2024E at HKD 10.44 [8][16] Revenue Breakdown - Revenue from the cash market segment was HKD 8,164 million, down 9.6% year-on-year, accounting for 40% of total revenue [6] - The derivatives segment generated revenue of HKD 6,502 million, up 23% year-on-year, representing 32% of total revenue [6] - The commodities segment reported revenue of HKD 2,188 million, an increase of 6.7% year-on-year [6] Future Projections - Estimated total revenue for 2024, 2025, and 2026 is projected to be HKD 22,874 million, HKD 24,639 million, and HKD 26,160 million respectively, with year-on-year growth rates of 11%, 8%, and 6% [16][19] - Net profit projections for the same years are HKD 13,231 million, HKD 14,246 million, and HKD 14,894 million, with corresponding growth rates of 12%, 7%, and 5% [16][19]