EBSCN·2024-03-27 16:00Investment Rating - The report maintains an "Accumulate" rating for A-shares and a "Buy" rating for H-shares of CITIC Securities [1][7]. Core Views - CITIC Securities reported a revenue of 60.07 billion RMB in 2023, a year-on-year decrease of 7.74%, and a net profit attributable to shareholders of 19.72 billion RMB, down 7.49% year-on-year [2][5]. - The company’s weighted average ROE for 2023 was 7.81%, a decrease of 0.86 percentage points compared to the previous year [2]. - The brokerage business saw a net income decline of 8.5%, primarily due to a decrease in market trading volume [5]. - Investment income increased by 22.8% year-on-year, reaching 22.49 billion RMB, driven by fair value changes in trading financial assets [5][6]. Summary by Sections Financial Performance - In 2023, CITIC Securities achieved a revenue of 60.07 billion RMB, with a net profit of 19.72 billion RMB and basic earnings per share of 1.30 RMB [2][5]. - The revenue structure showed slight changes, with brokerage, asset management, investment, underwriting, and other businesses contributing 25%, 18%, 33%, 10%, and 14% respectively to total revenue [5]. Brokerage and Investment Banking - The brokerage business's net income was 10.22 billion RMB, down 8.5% year-on-year, with a significant drop in interest income by 30.6% [5]. - CITIC Securities maintained the top market share in investment banking, with a fundraising amount of 50.03 billion RMB in 2023, representing a 14% market share [5]. Asset Management - The asset management scale reached 1.39 trillion RMB, with a market share of 13.7%, leading the industry [5]. - The net income from asset management was 9.85 billion RMB, a decrease of 10% year-on-year [5]. Future Outlook - The report adjusts the net profit forecasts for 2024-2026 to 22.18 billion RMB, 22.65 billion RMB, and 24.23 billion RMB respectively, with corresponding EPS estimates of 1.50 RMB, 1.53 RMB, and 1.64 RMB [6][8].