SINOLINK SECURITIES(SH:600109) Guotai Junan Securities·2024-04-25 08:02Investment Rating - Maintains an "Overweight" rating with a target price of 12.21 yuan per share, corresponding to 25.98x PE and 1.34x PB for 2024 [1] Core Views - The company's investment income declined year-on-year in Q1 2024, putting pressure on performance [1] - The company is expected to optimize its investment banking business layout around new quality productivity, driving multiple businesses [1] - Under the new "National Nine Articles" policy, the company is likely to achieve comprehensive value realization for clients by enhancing professional service capabilities [1] Financial Performance - 2023 revenue reached 6.73 billion yuan, a year-on-year increase of 17.39%, with net profit attributable to shareholders of 1.718 billion yuan, up 43.41% [1] - Weighted average ROE increased by 1.22 percentage points to 5.39% in 2023 [1] - Q1 2024 revenue was 1.483 billion yuan, down 24.03% year-on-year, with net profit attributable to shareholders of 367 million yuan, down 38.6% [1] - Adjusted EPS forecasts for 2024-2025 to 0.47/0.52 yuan from previous 0.52/0.61 yuan, and added 2026 EPS forecast of 0.57 yuan [1] Business Highlights - Investment business net income surged 497.37% year-on-year to 1.688 billion yuan in 2023, contributing 141.02% to adjusted revenue growth [1] - Financial asset scale increased by 14.78% to 434.85 billion yuan by the end of 2023 [1] - Q1 2024 investment business net income fell 61.43% year-on-year due to a high base in 2022 [1] Strategic Outlook - The company will focus on optimizing its investment banking business around new quality productivity, driving multiple businesses [1] - The new "National Nine Articles" policy emphasizes professional service capabilities, which will help the company achieve deeper and more comprehensive value realization for clients [1] - The company will continue to strengthen its project pipeline, focusing on policy-encouraged industrial mergers and acquisitions, and improve the quality of its operations [1] Market Performance - Current stock price is 8.42 yuan, with a 52-week price range of 7.89-10.80 yuan [1] - Total market capitalization is 31.26 billion yuan, with a circulating A-share ratio of 86% [1] - Average daily trading volume is 31.48 million shares, with an average daily trading value of 275.45 million yuan [1]