Beijing (SZ:300803) Huachuang Securities·2024-04-30 15:02Investment Rating - The report maintains a "Recommended" investment rating for the company with a target price of 61.75 CNY, compared to the current price of 47.37 CNY [1]. Core Views - The traditional business faces pressure, but the securities segment is entering a positive development track. The company is increasing its investment in research and development while expanding brand promotion and customer acquisition efforts [3]. - Despite a decline in financial information service revenue, the company has successfully achieved operational profitability in its securities business, with significant growth in commission income and investment returns [3]. - The first quarter of 2024 shows a notable increase in new paying users, and the securities business continues to be profitable, although overall revenue is down due to timing effects related to the Chinese New Year [3]. Financial Performance Summary - In 2023, the company reported revenue of 1.113 billion CNY, a year-on-year decline of 11.33%. The net profit attributable to shareholders was 73 million CNY, down 78.54% [2]. - For Q1 2024, revenue was 294 million CNY, a decrease of 13.17%, with a net profit of 17 million CNY, down 70.74% [2]. - The company expects revenue growth in the coming years, projecting 1.477 billion CNY in 2024, 1.900 billion CNY in 2025, and 2.188 billion CNY in 2026, with corresponding net profits of 256 million CNY, 391 million CNY, and 502 million CNY respectively [4]. Business Segment Insights - The traditional financial information service business has seen a decline in performance, while the securities business, particularly through the acquisition of Maigao Securities, has achieved operational profitability for the first time [3]. - In 2023, Maigao Securities reported a net profit of 5.93 million CNY, with significant increases in commission income and net interest income [3]. - The first quarter of 2024 saw a 178.61% increase in commission income and a 132.87% increase in net interest income for Maigao Securities, indicating strong growth in its brokerage and proprietary trading operations [3].