Huachuang Securities·2024-03-28 16:00Investment Rating - The report maintains a "Recommendation" rating for Dongfang Securities (600958) with a target price of 11.0 CNY, while the current price is 8.24 CNY [1]. Core Insights - The company's performance for the year met expectations, with a total revenue of 27.5 billion CNY, reflecting a year-on-year decrease of 8.7%. The net profit attributable to shareholders was 2.754 billion CNY, down 8.5% year-on-year [2][5]. - The return on equity (ROE) for the year was 3.5%, showing a slight decline of 0.7 percentage points year-on-year. The financial leverage ratio improved, with total leverage rising to 273 billion CNY [2][5]. - The report highlights a transformation in wealth management as a long-term focus for the company, despite the current market conditions being less favorable than expected [1][5]. Financial Performance Summary - Total revenue for 2023 was 17,090 million CNY, with a year-on-year growth rate of -8.7%. Projections for 2024, 2025, and 2026 are 20,493 million CNY, 24,359 million CNY, and 27,469 million CNY, respectively, with expected growth rates of 19.9%, 18.9%, and 12.8% [2][19]. - The net profit attributable to shareholders for 2023 was 2,754 million CNY, with projected figures of 2,943 million CNY, 3,234 million CNY, and 3,593 million CNY for the following years, reflecting growth rates of 6.9%, 9.9%, and 11.1% [2][19]. - Earnings per share (EPS) for 2023 was 0.32 CNY, with forecasts of 0.35 CNY, 0.38 CNY, and 0.42 CNY for the next three years [2][19]. Business Segment Performance - The report indicates a decline in light capital business revenue, with brokerage business revenue down 9.8% and asset management revenue down 9.0%. However, self-operated business revenue increased by 25.7% due to favorable market conditions [2][5]. - The investment banking segment saw a significant decrease in revenue, with underwriting revenue down 39.2% year-on-year. Despite this, the company’s investment banking revenue growth may exceed industry averages [2][5]. - Interest income from self-operated business increased by 7.6%, benefiting from a decline in bond financing costs [2][5].