SINOLINK SECURITIES(SH:600109)2024-05-05 02:00Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 11.03 [3][5][17] Core Insights - The company is enhancing its research capabilities and driving business synergy through investment banking, achieving high investment returns with a robust strategy. In 2023, proprietary business rebounded significantly from a low base, contributing to performance improvement [3][13][16] Financial Performance Summary - In 2023, the company achieved a revenue of RMB 6.73 billion, a year-on-year increase of 17.4%, and a net profit of RMB 1.72 billion, up 43.4% year-on-year. The earnings per share (EPS) was RMB 0.46, with a return on equity (ROE) of 5.4%, an increase of 1.2 percentage points year-on-year [4][13] - For Q4 2023, revenue was RMB 1.70 billion, up 2.6% year-on-year, and net profit was RMB 0.48 billion, up 28.4% year-on-year [4][13] - In Q1 2024, revenue decreased to RMB 1.48 billion, down 24.0% year-on-year, and net profit was RMB 0.37 billion, down 38.6% year-on-year [4][13] Business Segment Performance - Wealth management brand was upgraded, with brokerage revenue in 2023 at RMB 1.65 billion, nearly flat year-on-year, accounting for 24.5% of total revenue. The trading volume of stocks was RMB 61 trillion, up 7.4% year-on-year [4][14] - Investment banking revenue in 2023 was RMB 1.34 billion, down 21.3% year-on-year, with equity underwriting volume decreasing by 21.5% year-on-year, while bond underwriting volume increased by 31.5% year-on-year [4][15] - Asset management revenue was RMB 0.09 billion in 2023, down 32.1% year-on-year, with total assets under management (AUM) at RMB 123.5 billion, down 30.7% year-on-year [4][16] Investment Strategy and Outlook - The company is expected to achieve EPS of RMB 0.45, 0.47, and 0.50 for 2024, 2025, and 2026 respectively, with book value per share (BVPS) projected at RMB 9.19, 9.62, and 10.07 for the same years [5][17]