2024-04-28 02:32Investment Rating - The report maintains an "Outperform" rating for the company [3] Core Views - The company's Q1 2024 performance showed a significant improvement in net profit on a quarter-over-quarter basis, driven by a normalization of asset impairment and a turnaround in investment income [3] - The report highlights that the company has implemented share buyback plans, reflecting confidence in its development [3] Summary by Relevant Sections Financial Performance - In Q1 2024, the company achieved revenue of 4.76 billion yuan, down 44% year-over-year but up 1156% quarter-over-quarter; net profit was 911 million yuan, down 63% year-over-year but up 127% quarter-over-quarter [3] - The weighted ROE for Q1 2024 was 0.56%, a decrease of 0.91 percentage points year-over-year [3] - The company reported a significant reduction in asset impairment, with a single-quarter provision of 260 million yuan, down 87% quarter-over-quarter [3] Revenue Breakdown - Main revenue sources for Q1 2024 included brokerage (850 million yuan, -7% YoY), investment banking (410 million yuan, -54% YoY), asset management (400 million yuan, -15% YoY), net interest (870 million yuan, -19% YoY), and net investment (1.15 billion yuan, -38% YoY) [3] - The net investment segment saw a quarter-over-quarter increase of 135% [3] Future Projections - The report forecasts net profits for 2024-2026 to be 4.15 billion, 5.33 billion, and 7.23 billion yuan, representing year-over-year growth rates of 311.5%, 28.5%, and 35.6% respectively [3][4] - The company aims to enhance quality and efficiency through its 2024 action plan [3] Market Position - The company ranked fourth in the industry for IPO underwriting in Q1 2024, with a market share of 6.8% [3] - The company maintained a stable market share in bond underwriting at 3.2%, ranking eighth in the industry [3] Asset Management - The company's asset management subsidiary, Hai Fu Tong Fund, reported a non-money market fund AUM of 111.3 billion yuan, up 28% year-over-year [3] - Fu Guo Fund, another subsidiary, had a non-money market fund AUM of 571 billion yuan, down 5% year-over-year, outperforming the industry average decline of 6% [3]