CGS(SH:601881) Xinda Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for China Galaxy Securities (601881) [1] Core Views - China Galaxy Securities achieved revenue of RMB 336.44 billion and net profit of RMB 78.79 billion in 2023, with year-on-year growth of 0.01% and 1.43% respectively [2] - The company's weighted average ROE was 7.52%, a decrease of 0.70 percentage points year-on-year [2] - Proprietary trading and asset management businesses showed strong growth, while brokerage and investment banking revenues declined [2] Business Performance Wealth Management - Wealth management client base exceeded 15.5 million, with North Exchange qualified investors ranking first in the industry [3] - High-net-worth client brand "Galaxy Jinyi" signed 5,456 clients, a 156% increase from 2022 [3] - Financial product sales reached RMB 949.88 billion, with average monthly custody scale growing 6.15% to RMB 2036.26 billion [3] Investment Banking - Equity underwriting amounted to RMB 3.765 billion, while debt underwriting reached RMB 357.954 billion, a 41.75% year-on-year increase [3] - Ranked 12th in the industry for debt underwriting [3] Institutional Business - Established new institutional business line and launched "Galaxy Tian Gong" one-stop institutional service platform [3] - Provided market-making services for 12 North Exchange listed companies [3] International Business - Completed 15 Hong Kong IPO projects and 133 bond underwriting deals in 2023 [3] - Achieved 100% ownership of Galaxy-CIMB Securities and Galaxy-CIMB Holdings, strengthening Southeast Asia market position [3] Investment Trading - Fixed income investment business showed steady growth [4] - Financial investment assets reached RMB 3081.37 billion, a 7.5% increase from the beginning of the year [5] Financial Projections - Forecasted net profits for 2024-2026 are RMB 8.453 billion, RMB 9.732 billion, and RMB 10.738 billion respectively [6] - Projected PB ratios for 2024-2026 are 0.98X, 0.96X, and 0.93X [5] - Expected EPS for 2024-2026 are RMB 0.77, RMB 0.89, and RMB 0.98 [6]