Huaan Securities(SH:600909) Zhongyuan Securities·2024-04-13 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][24]. Core Views - The company achieved a revenue of 3.652 billion yuan in 2023, representing a year-on-year increase of 15.60%, and a net profit attributable to shareholders of 1.274 billion yuan, up 7.78% year-on-year [5][7]. - The report highlights a significant growth in institutional client engagement and a record high in asset management business revenue, despite a decline in brokerage and investment banking revenues [5][19]. - The company is transitioning its proprietary trading from directional to diversified and strategic approaches, maintaining a high yield in fixed-income investments [19]. Summary by Sections Financial Performance - In 2023, the company reported a basic earnings per share (EPS) of 0.27 yuan, an increase of 8.00% year-on-year, with a return on equity (ROE) of 6.20%, up 0.22 percentage points [5][22]. - The company plans to distribute a dividend of 1.00 yuan per share (before tax), which accounts for 36.86% of the net profit attributable to shareholders [7][19]. Revenue Composition - The revenue composition for 2023 showed an increase in investment income (including fair value changes) and other income, while brokerage, investment banking, asset management, and interest income proportions decreased [8][11]. - The net income from brokerage services decreased by 5.94% year-on-year, while the asset management business saw a slight increase of 0.83%, achieving a historical high in fee income [11][15]. Investment Banking and Asset Management - The investment banking segment experienced a significant decline, with net income from investment banking fees down 28.48% year-on-year, primarily due to a sharp drop in equity financing [12][19]. - Conversely, the asset management business continued to grow, with a management scale of 60.683 billion yuan, up 10.55% year-on-year, and a record high in fee income [15][19]. Future Projections - The company forecasts EPS of 0.24 yuan and 0.27 yuan for 2024 and 2025, respectively, with book value per share (BVPS) projected at 4.57 yuan and 4.76 yuan [19][22]. - Based on the closing price of 4.57 yuan on April 11, 2024, the projected price-to-book (P/B) ratios are 1.00 and 0.96 for 2024 and 2025, respectively [19][22].