Guotou Securities·2024-04-02 16:00Investment Rating - The investment rating for the company is maintained at "Buy - A" [3][7]. Core Views - The company reported a total revenue of 23 billion yuan in 2023, representing a year-on-year increase of 11.87%, while the net profit attributable to shareholders was 6.2 billion yuan, down 18.97% year-on-year [1]. - The wealth management segment has shown resilience, with a total client base of 6.8 million, an increase of 17% year-on-year, and total client account assets reaching 2.88 trillion yuan, up 4% year-on-year [2]. - The company is expected to benefit as a leading brokerage amid tightening regulations and increasing industry competition [7]. Summary by Sections Financial Performance - In 2023, the company achieved a weighted average ROE of 6.43%, down 2.45 percentage points year-on-year, with an EPS of 1.138 yuan, a decrease of 21.99% year-on-year [1]. - The brokerage, investment banking, asset management, credit, and proprietary trading segments generated net revenues of 4.5 billion yuan, 3.7 billion yuan, 1.2 billion yuan, -1.3 billion yuan, and 10.6 billion yuan respectively, with declines in investment banking and credit segments [1]. Business Segments - The stock business revenue fell by 12% to 5.3 billion yuan, while fixed income revenue decreased by 19% to 2.5 billion yuan, primarily due to reduced commission income and increased interest expenses [1]. - The asset management division saw a contraction in scale, with total assets under management at 552.6 billion yuan, down 21% year-on-year, while the mutual fund segment grew by 25% to 138.5 billion yuan [1][2]. Wealth Management - The wealth management business has continued to grow, with a product holding scale of approximately 350 billion yuan, marking four consecutive years of positive growth [2]. - The company has established a strong international presence, with significant cross-border settlement volumes and a leading position in the Hong Kong IPO market [2]. Market Position - The company ranked fourth in the domestic IPO underwriting market with a scale of 32.2 billion yuan, down 39% year-on-year, and third in refinancing with 49.3 billion yuan, down 61% year-on-year [2]. - In the offshore market, the company led the market as a sponsor and global coordinator for Hong Kong IPOs, with a scale of 1.2 billion USD [2].