Haitong Securities·2024-03-30 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Views - The company has successfully gained control and consolidated Hu'an Fund, with a smooth start in public fund product layout. The brokerage business has seen a decline in market activity, while the equity investment banking business is under pressure due to high base effects. The reasonable value range is set between 17.24 and 18.96 CNY, maintaining the "Outperform the Market" rating [6][7]. Financial Performance Summary - In 2023, the company achieved operating revenue of 36.14 billion CNY, a year-on-year increase of 1.9%. However, the net profit attributable to the parent company was 9.37 billion CNY, a decrease of 18.5% year-on-year. The earnings per share (EPS) was 0.98 CNY, with a return on equity (ROE) of 6.0%, down by 1.9 percentage points [7][8]. - The fourth quarter saw operating revenue of 9.11 billion CNY, up 4.1% year-on-year and 4.8% quarter-on-quarter, but the net profit attributable to the parent company plummeted by 75.8% year-on-year and 74.1% quarter-on-quarter [7][8]. Business Segment Performance - Brokerage business revenue in 2023 was 6.79 billion CNY, down 11.2% year-on-year, accounting for 18.8% of total revenue. The average daily trading volume in the market was 962.5 billion CNY, a decrease of 4.0% year-on-year [7][8]. - Investment banking revenue was 3.69 billion CNY, down 14.5% year-on-year, with equity underwriting volume decreasing by 41.9% while bond underwriting volume increased by 30.6% [7][8]. - Asset management revenue surged to 4.10 billion CNY, a year-on-year increase of 148.5%, with total assets under management reaching 543.1 billion CNY, up 25.3% year-on-year [7][8]. Future Earnings Forecast - The company expects EPS for 2024, 2025, and 2026 to be 1.20 CNY, 1.32 CNY, and 1.48 CNY respectively. The book value per share (BVPS) is projected to be 17.24 CNY, 17.96 CNY, and 18.75 CNY for the same years [7][8][12].