CGS(SH:601881) Zhongyuan Securities·2024-04-09 16:00Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [2][32]. Core Views - The company achieved a revenue of 33.644 billion yuan in 2023, a slight increase of 0.01% year-on-year, and a net profit attributable to shareholders of 7.879 billion yuan, up 1.43% year-on-year [4][7]. - The company is focusing on high-net-worth clients, enhancing its investment advisory capabilities, and driving improvements in investment business quality and efficiency [4][26]. - The international business has shown robust growth, with a revenue increase of 11.28% year-on-year, maintaining a leading position in Southeast Asia [4][25]. Summary by Sections Financial Performance - In 2023, the company reported a basic earnings per share (EPS) of 0.67 yuan, down 4.29% year-on-year, and a return on equity (ROE) of 7.52%, a decrease of 0.70 percentage points year-on-year [4][7]. - The company plans to distribute a dividend of 2.20 yuan per share (before tax), representing 30.53% of the net profit attributable to shareholders [4][7]. Business Segments - The asset management business's net income and investment income (including fair value changes) have increased, while the proportions of brokerage, investment banking, interest, and other income have decreased [4][8]. - The brokerage business's net income from fees decreased by 13.56% year-on-year, while the investment banking business's net income from fees fell by 19.77% [4][11][12]. - The company achieved a record high in bond underwriting, with a total of 357.954 billion yuan, up 41.75% year-on-year [4][12]. Investment Strategy - The company is focusing on innovative investment trading based on client needs, leading to a significant year-on-year increase of 36.93% in investment income [4][19]. - The company is enhancing its fixed income investment strategy and expanding its alternative investment business, which has shown promising returns [4][19]. Future Outlook - The company expects EPS of 0.63 yuan and 0.72 yuan for 2024 and 2025, respectively, with corresponding book value per share (BVPS) of 9.58 yuan and 10.06 yuan [4][26]. - The report suggests that the company will benefit from regulatory support aimed at fostering strong firms and building a first-class investment bank [4][26].