Investment Rating - The report maintains a "Recommended" rating for the company with a target price of HKD 12.6 [1][3]. Core Views - The company's performance in 2023 met expectations, although both domestic and international market conditions have shown a decline in activity [1]. - The company's total revenue for 2023 was HKD 22.99 billion, a year-on-year decrease of 11.9%, while net profit attributable to shareholders was HKD 6.16 billion, down 19% year-on-year [1][4]. - The return on equity (ROE) was 6%, a decrease of 2.2 percentage points compared to the previous year [1]. Summary by Sections Revenue Composition - Light asset business contributed 52.6% of total revenue, down 8.5 percentage points year-on-year, while brokerage, investment banking, and asset management revenues fell by 13.4%, 47.2%, and 11.2% respectively [1]. - Heavy asset business accounted for 40.1% of total revenue, an increase of 3.4 percentage points year-on-year, with proprietary trading and credit business revenues decreasing by 0.5% and 30.5% respectively [1]. Brokerage Business - The average daily trading volume in the market was HKD 877.2 billion, a decline of 5.23% year-on-year, leading to a decrease in brokerage fee income to HKD 4.53 billion, down 13.4% [2]. - The company's A-share IPO underwriting amount was HKD 32.24 billion, a significant drop of 58.6% year-on-year, while refinancing underwriting fell by 34% to HKD 82.54 billion [2]. Asset Management - The asset management scale contracted to HKD 656.88 billion, a decrease of 19.5% year-on-year, with asset management fee income at HKD 1.21 billion, down 11.2% [2]. Heavy Asset Business - Proprietary trading assets slightly increased to HKD 350.3 billion, with a yield of 3.99%, while proprietary trading income remained stable at HKD 10.56 billion, down 0.5% [3]. - The company's margin financing balance grew to HKD 35.81 billion, an increase of 13.2% year-on-year, leading to a slight rise in market share to 2.17% [3]. Earnings Forecast - The report projects earnings per share (EPS) for 2024, 2025, and 2026 to be HKD 1.51, HKD 1.85, and HKD 2.16 respectively, with book value per share (BPS) expected to be HKD 19.33, HKD 20.76, and HKD 22.43 [3][4].
2023年报点评：业绩符合预期，境内外市场景气度有所下行