投资承压，海外整合

Investment Rating - The report maintains a "Buy" rating for Huatai Securities (601688 SH) [1][4][7] Core Views - Huatai Securities' Q1 2024 performance showed significant declines with revenue down 32% YoY to 6 105 billion yuan and net profit down 29% YoY to 2 291 billion yuan [1] - The company's investment income dropped sharply by 59% YoY to 1 881 billion yuan due to market volatility in equity derivatives and direct equity investments [1] - Huatai Securities is undergoing overseas asset restructuring having agreed to sell its entire stake in AssetMark for approximately 1 793 billion USD [1] - The company's asset management business showed growth with net income increasing 10% YoY to 1 106 billion yuan in Q1 2024 [1] Financial Performance - For 2024-2026 the report forecasts net profits of 13 927 billion yuan 14 604 billion yuan and 15 809 billion yuan respectively representing YoY growth rates of 9 2% 4 9% and 8 3% [1][7] - The company's ROE is expected to be 7 6% 7 5% and 7 7% for 2024-2026 respectively [2][8] - Huatai Securities' total assets are projected to grow from 905 508 billion yuan in 2023 to 1 095 665 billion yuan by 2026 [8] Business Segments - The brokerage business maintains a strong market position ranking second in the industry for stock+hybrid and non-monetary public fund custody [1] - Huatai Bairui's non-monetary fund scale exceeded 330 billion yuan in Q1 2024 a 47 12% YoY increase [1] - The company's international platform Huatai International has shown steady growth with total assets exceeding 200 billion HKD by end-2023 and a three-year CAGR of 8 8% [1] Valuation Metrics - The current PE ratios for 2024-2026 are projected at 10 8x 10 3x and 9 5x respectively [1][7] - PB ratios are expected to be 0 8x 0 8x and 0 7x for 2024-2026 respectively [1][7] - EPS is forecasted to grow from 1 53 yuan in 2024 to 1 74 yuan in 2026 [8]