2024-04-30 03:02Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's Q1 2024 performance met expectations, with total revenue of 3.61 billion yuan, a year-over-year decrease of 19%, but a quarter-over-quarter increase of 6%. The net profit attributable to shareholders was 886 million yuan, down 38% year-over-year but a significant recovery from a loss in the previous quarter [2][3] - The report highlights that the company's investment income significantly improved, contributing to a substantial quarter-over-quarter profit recovery, driven by a net investment income of 810 million yuan in Q1 2024, compared to a loss in the previous quarter [2][3] - The report notes a significant reduction in stock pledge risks, with the net value of stock pledges dropping by 69% year-over-year, indicating a major risk clearance [2][3] - The asset management business is under pressure due to changes in public fund fees, with the company's public non-monetary AUM down 21% year-over-year [2][3] Summary by Sections Financial Performance - Q1 2024 total revenue was 3.61 billion yuan, down 19% year-over-year, but up 6% quarter-over-quarter. The net profit was 886 million yuan, down 38% year-over-year but up significantly from the previous quarter's loss [2][3] - The company expects net profits for 2024 to be 3.07 billion yuan, reflecting an 11.5% year-over-year increase [3][9] Revenue Breakdown - In Q1 2024, the main revenue sources included 2.46 billion yuan from securities, with a year-over-year decline of 29% but a quarter-over-quarter increase of 21%. Investment income was the largest contributor to the revenue recovery [2][3] Market Position - The company's brokerage income underperformed compared to the industry, with a 30% year-over-year decline in brokerage revenue. However, the fund advisory business showed stable growth [2][3] Future Outlook - The report anticipates a recovery in the company's performance as stock quality risks are cleared, and it expects improvements in brokerage and fund advisory businesses due to ongoing policy support [2][3]