Soochow Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for Huatai Securities [1] Core Views - Huatai Securities reported a total revenue of 36.578 billion yuan in 2023, representing a year-on-year growth of 14.19%, and a net profit attributable to shareholders of 12.751 billion yuan, up 15.35% year-on-year, which aligns with expectations [2][3] Summary by Sections Revenue and Profitability - In 2023, Huatai Securities achieved a revenue of 36.578 billion yuan and a net profit of 12.751 billion yuan, with respective year-on-year growth rates of 14% and 15% [3] - The company's self-operated business revenue saw a significant increase of 94% year-on-year, reaching 11.7 billion yuan, primarily driven by the recovery in valuations of private equity funds and alternative investment projects [3] Business Segments Performance - The brokerage business faced challenges with net commission income declining by 10% to 14.613 billion yuan, attributed to decreased market activity [3] - Investment banking revenue dropped significantly by 25% to 3 billion yuan due to regulatory tightening affecting IPOs and refinancing [3] - Asset management revenue, however, grew by 13% to 4.256 billion yuan, indicating a positive trend in this segment [3] Interest Income and Expenses - Interest income decreased by 64% to 0.952 billion yuan, primarily due to a substantial increase in interest expenses, which rose by 23% to 13.7 billion yuan [4] Earnings Forecast - The report revises the earnings forecast for Huatai Securities, projecting net profits of 13.110 billion yuan for 2024 and 14.182 billion yuan for 2025, with growth rates of 2.82% and 8.18% respectively [4] - For 2026, the expected net profit is 15.102 billion yuan, reflecting a growth rate of 6.49% [4] Valuation Metrics - The current market capitalization corresponds to a price-to-book (PB) ratio of 0.76 for 2024, 0.71 for 2025, and 0.67 for 2026, indicating a favorable valuation outlook [4]