CMS(600999) 海通证券·2024-04-01 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company's proprietary business has shown excellent performance, driving overall revenue growth, while brokerage, asset management, and investment banking businesses have experienced declines. The collaboration with China Merchants Group and China Merchants Bank is viewed positively, with a reasonable valuation range set at 15.76-17.07 yuan, maintaining the "Outperform the Market" rating [4][5]. Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 19.82 billion yuan, a year-on-year increase of 3.1%, and a net profit attributable to shareholders of 8.76 billion yuan, up 8.6%. The earnings per share (EPS) was 0.94 yuan, with a return on equity (ROE) of 7.9%. The fourth quarter saw operating revenue of 4.95 billion yuan, a year-on-year increase of 26.2% and a quarter-on-quarter increase of 21.4%, with a net profit of 2.36 billion yuan, up 31.8% year-on-year and 41.1% quarter-on-quarter [4][5]. Business Segment Performance - Brokerage business revenue declined by 14.2% year-on-year to 5.53 billion yuan, accounting for 27.9% of total revenue. The average daily trading volume in the market decreased by 4.0% year-on-year to 962.5 billion yuan. The investment banking revenue fell by 6.5% year-on-year to 1.3 billion yuan, with a significant drop in equity underwriting scale by 42.9% [4][5]. - Asset management revenue also saw a decline of 14.0% year-on-year to 710 million yuan, with total assets under management at 294.9 billion yuan, down 7.0% year-on-year [5]. Proprietary Business - The proprietary business performed exceptionally well, with investment income (including fair value) reaching 6.73 billion yuan, a year-on-year increase of 31.6%. The proprietary asset scale grew by 13% year-on-year to 310 billion yuan, with equity assets increasing by 31.4% to 26 billion yuan [5]. Future Earnings Forecast - The company is expected to have EPS of 1.15 yuan, 1.26 yuan, and 1.32 yuan for the years 2024, 2025, and 2026 respectively, with book value per share (BVPS) projected at 13.13 yuan, 14.16 yuan, and 15.08 yuan for the same years. A price-to-book (P/B) ratio of 1.2-1.3x is anticipated for 2023, corresponding to a reasonable valuation range of 15.76-17.07 yuan [5][10].