GF SECURITIES(000776) 国泰君安·2024-04-30 14:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.94 CNY per share, corresponding to a 20.63x PE and 1.17x PB for 2024 [3][5]. Core Insights - The company's investment performance has declined, leading to pressure on overall performance. The State Council has indicated a push for leading securities firms to strengthen and improve, with the company enhancing its asset management and institutional service capabilities to build a top-tier investment bank and investment institution [3]. - The company's Q1 2024 revenue and net profit attributable to shareholders were 4.949 billion CNY and 1.538 billion CNY, respectively, showing a year-on-year change of -23.59% and -28.67% [3]. - The report highlights a significant drop in net income from investment business, down 35.72% to 1.104 billion CNY, which negatively impacted overall performance [3]. - The company’s net interest income also fell by 53.22% to 438 million CNY, further dragging down performance due to the expansion of interest-bearing liabilities [3]. Financial Summary - The company reported a total revenue of 23.3 billion CNY in 2023, down 7.3% from 2022, with a projected revenue of 22.378 billion CNY for 2024, indicating a further decline of 4.0% [4]. - The net profit attributable to shareholders for 2023 was 6.978 billion CNY, a decrease of 12.0% from 2022, with an expected net profit of 6.627 billion CNY for 2024, reflecting a further decline of 5.0% [4]. - The earnings per share (EPS) for 2023 was 0.92 CNY, with projections of 0.87 CNY for 2024, 0.96 CNY for 2025, and 1.05 CNY for 2026 [4][13]. Market Position and Outlook - The company is positioned as one of the first comprehensive securities firms in China, with a strong brand in public funds and leading research capabilities [10]. - The report anticipates that the acceleration of supply-side reforms in the industry will benefit the company, particularly in its asset management and institutional service sectors [3].