Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 19.85, corresponding to a 2024 PE of 13.51x and a PB of 0.93x [3][5]. Core Views - The company's performance is under pressure due to a slowdown in IPO and refinancing activities, but it is enhancing its professional capabilities across various business lines and has a leading risk control and compliance system, which may benefit from supply-side reforms in the industry [3][4]. - The report slightly lowers the earnings forecast for 2024-2025, projecting EPS of RMB 1.33 and RMB 1.50, down from RMB 1.55 and RMB 1.89, respectively, while estimating 2026 EPS at RMB 1.63 [3][4]. Financial Summary - In 2023, the company reported revenue of RMB 22.99 billion and a net profit of RMB 6.16 billion, reflecting a year-on-year change of -11.87% and -18.97%, respectively [3][4]. - The investment banking business saw a significant decline in net income, down 47.16% to RMB 3.70 billion, primarily due to a 31.27% drop in A-share IPO financing to RMB 359 billion and a 37.56% decrease in refinancing to RMB 527.5 billion [3][4]. - The company experienced a 300.01% increase in foreign exchange gains to RMB 1.36 billion, which helped mitigate the overall performance decline [3][4]. Business Development - The company is focused on enhancing its professional capabilities across various business lines, including innovation in fixed-income products and improving merger and acquisition services [3][4]. - The ongoing supply-side reforms in the securities industry are expected to favor leading brokerages, with the company positioned to capitalize on policy opportunities [3][4].
中金公司2023年报点评：发行放缓业绩承压，专业性提升强化优势