Huachuang Securities·2024-04-28 01:01Investment Rating - The report maintains a "Recommended" rating for Huatai Securities, with a target price of 18.1 CNY, compared to the current price of 14.24 CNY [5][6]. Core Views - Huatai Securities plans to sell its entire stake in AssetMark for approximately 1.793 billion USD, which is expected to yield a net investment income of 795.73 million USD [2]. - The strategic goal of the acquisition of AssetMark has been largely achieved, with limited further synergy expected due to challenges in integrating domestic and international operations [2]. - The sale is seen as a profit-taking move, as AssetMark's stock price has risen significantly in recent years, allowing Huatai to realize investment gains [2]. - The transaction is anticipated to enhance Huatai's overseas business scale, particularly in the dollar funding needs for cross-border revenue swap operations, thereby reducing overall financing costs for international operations [2]. Financial Projections - The report forecasts the following earnings per share (EPS) for Huatai Securities: 1.48 CNY in 2024, 1.70 CNY in 2025, and 2.08 CNY in 2026 [2][9]. - The projected book value per share (BPS) is expected to be 18.06 CNY in 2024, 19.23 CNY in 2025, and 20.66 CNY in 2026 [2]. - The price-to-book (PB) ratios are projected to be 0.79 in 2024, 0.74 in 2025, and 0.69 in 2026 [2]. - Return on equity (ROE) is expected to be 8.20% in 2024, 8.82% in 2025, and 10.08% in 2026 [2]. Revenue and Profit Growth - Total revenue is projected to grow from 36,578 million CNY in 2025 to 52,355 million CNY in 2026, reflecting a year-on-year growth rate of 18.2% [3][9]. - Net profit attributable to shareholders is expected to increase from 12,751 million CNY in 2025 to 18,811 million CNY in 2026, with a growth rate of 22.8% [3][9].