Beijing (SZ:300803) Guotai Junan Securities·2024-04-28 08:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 70.96 CNY, which corresponds to a P/E ratio of 61x for the year 2025 [1]. Core Views - The company's performance has declined due to adjustments in the marketing cycle and increased advertising expenses; however, the securities business continues to grow rapidly, indicating promising future growth potential [1]. - The report highlights that the decline in net profit is primarily due to two reasons: a delay in the marketing cycle of high-end products and an increase in sales expenses [1]. Summary by Sections Financial Performance - In Q1 2024, the adjusted revenue (including investment business income) was 3.24 billion CNY, with a net profit of 0.17 billion CNY, representing a year-on-year decline of 6.99% and 70.74% respectively [1]. - The expected EPS for 2024, 2025, and 2026 are projected to be 0.66 CNY, 1.16 CNY, and 1.61 CNY respectively [1]. Business Segments - The securities business has shown a significant increase, with net income from fees and commissions rising by 178.61% year-on-year, and net interest income increasing by 132.87% [1]. - The report anticipates that the rapid growth in the securities business will drive overall company performance in the future [1]. Market Position - The company is positioned as the first publicly traded enterprise in China focused on financial services for individual investors, offering advanced investment tools and solutions across four major areas: securities, futures, foreign exchange, and funds [2].