GF SECURITIES·2024-04-29 02:33Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company, with a target price of CNY 19.31 per share and HKD 8.40 per share [4]. Core Views - The company's performance in Q1 2024 showed a revenue of CNY 4.299 billion, down 9.7% year-on-year, and a net profit attributable to shareholders of CNY 2.157 billion, down 4.5% year-on-year, primarily due to a recovery in proprietary trading [1][2]. - The proprietary trading segment has shown a stable recovery, with net investment income and fair value changes amounting to CNY 2.399 billion in Q1, an increase of 13.5% year-on-year [1]. - The investment banking business experienced a decline, but at a rate better than the market average, while the wealth management segment faced pressure from market conditions [1]. Financial Summary - For 2024-2025, the company is projected to have earnings per share (EPS) of CNY 1.01 and CNY 1.21 respectively, with a price-to-earnings (P/E) ratio of 15.08 and 12.64 [3]. - The company's total assets reached CNY 642.6 billion, a year-on-year increase of 7.0%, with a leverage ratio (excluding client margin) of 4.42, up 0.25 year-on-year [1]. - The forecasted net profit for 2024 is CNY 8.790 billion, reflecting a slight increase of 0.3% year-on-year, while the revenue is expected to grow by 6.7% to CNY 21.156 billion [3].