Guotai Junan Securities·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for CITIC Securities with a target price of 35.04 CNY per share, corresponding to a PE ratio of 26.55x and a PB ratio of 1.84x [3][5]. Core Insights - The decline in investment banking revenue has led to a decrease in overall performance; however, the company's leading position continues to strengthen, and its professional capabilities are expected to improve, benefiting from supply-side reforms in the industry aimed at enhancing functionality [3][4]. - In 2023, the company's revenue and net profit attributable to shareholders were 60.068 billion CNY and 19.721 billion CNY, respectively, reflecting a year-on-year decline of 7.74% and 7.49% [3][4]. - The investment business saw a significant increase in net income, up 22.82% year-on-year to 22.487 billion CNY, contributing 163.86% to the adjusted revenue growth [3][4]. Financial Summary - Revenue for 2023 was 60,068 million CNY, down 7.7% from 2022, with an expected revenue of 58,974 million CNY for 2024 [4][18]. - The net profit attributable to shareholders for 2023 was 19,721 million CNY, a decrease of 7.5% compared to 2022, with projections of 19,596 million CNY for 2024 [4][18]. - The company's return on equity (ROE) for 2023 was 7.2%, down from 8.3% in 2022, with expectations of 6.8% for 2024 [4][18]. Business Outlook - The report anticipates that the company will benefit from ongoing supply-side reforms in the securities industry, which will enhance functionality and professional capabilities [3][4]. - The company is expected to strengthen its investment banking capabilities through mergers and acquisitions and organizational innovation, positioning itself for potential outperformance in the market [3][4].