Ping An Securities·2024-03-26 16:00Investment Rating - The report maintains a "Recommendation" rating for CITIC Securities, with a current stock price of 19.60 CNY [2][8]. Core Views - The company's performance is resilient despite a challenging investment environment, with a year-on-year decline in net profit of 7.5% [4][8]. - The company continues to hold a leading position in various business segments, including investment banking and asset management, despite facing pressures in the IPO market [8]. - The report anticipates a long-term growth potential for the company, supported by regulatory encouragement for leading financial institutions [8]. Financial Performance Summary - In 2023, CITIC Securities achieved operating revenue of 600.68 billion CNY, down 7.7% year-on-year, and a net profit attributable to shareholders of 197.21 billion CNY, also down 7.5% year-on-year [4][5]. - The company's total assets reached 14,534 billion CNY, with a net asset attributable to shareholders of 2,688 billion CNY [4]. - The earnings per share (EPS) was reported at 1.33 CNY, with a book value per share (BVPS) of 17.01 CNY [4][5]. Business Segment Performance - The self-operated business showed strong growth, with a year-on-year increase of 18% in scale, contributing positively to revenue stability [5]. - The investment banking segment faced challenges, with a 27% decline in revenue, but still maintained the highest underwriting scale in the industry [8]. - The brokerage and product distribution segments remained stable, with net income from agency trading at 5.9 billion CNY, despite a 17% year-on-year decline [5][8]. Future Projections - The report projects a slight recovery in revenue for 2024, with expected operating revenue of 60,068 million CNY, reflecting a year-on-year increase of 0.7% [10]. - The net profit forecast for 2024 is adjusted to 20,310 million CNY, indicating a growth of 3% compared to 2023 [8][10]. - The report anticipates a gradual improvement in the company's financial metrics, including a projected return on equity (ROE) of 7.5% for 2024 [11].