INDUSTRIAL SECURITIES·2024-03-31 16:00Investment Rating - The investment rating for the company is "Add" [2][3]. Core Views - The company reported a revenue of 23.3 billion and a net profit attributable to shareholders of 6.978 billion for 2023, representing a year-on-year decrease of 7.3% and 12.0% respectively. In Q4 alone, the revenue and net profit were 5.286 billion and 1.168 billion, showing a quarter-on-quarter increase of 10.7% and a decrease of 8.2% [3]. - The company's fee-based businesses faced pressure, while investment income saw significant growth, stabilizing overall performance. The revenue from fee-based and capital-based businesses was 14.512 billion and 7.415 billion, with year-on-year changes of -11.3% and +18.6% respectively [3]. - The brokerage business is adapting to market conditions, and the public fund business remains resilient. The net income from brokerage, investment banking, and asset management was 5.810 billion, 566 million, and 7.728 billion, with year-on-year changes of -9.0%, -7.2%, and -13.6% respectively [3]. - The company experienced a remarkable increase in investment income, primarily driven by the expansion of financial assets. The net interest income and investment income were 3.136 billion and 4.279 billion, with year-on-year changes of -23.5% and +98.7% respectively [3]. - The asset management business shows strong resilience, and the acquisition of a stake in Huiri Group is expected to enhance comprehensive asset management capabilities. The forecasted net profit attributable to shareholders for 2024 and 2025 is 8.546 billion and 9.279 billion, representing year-on-year growth of 22.5% and 8.6% respectively [3]. Summary by Sections Financial Performance - The company achieved a total revenue of 23.3 billion in 2023, down from 25.132 billion in 2022. The net profit attributable to shareholders decreased to 6.978 billion from 7.929 billion in 2022 [4]. - The company's operating expenses included management fees of 13.885 billion, which increased by 0.5% year-on-year [3][4]. Business Segments - The net income from brokerage services was 5.810 billion, while investment banking and asset management generated 566 million and 7.728 billion respectively [3]. - The company’s investment income surged to 5.301 billion, reflecting a strong performance in fixed-income assets [3]. Future Outlook - The company is expected to see a recovery in public fund performance, with projected net profits of 8.546 billion and 9.279 billion for 2024 and 2025 [3].