FCSC(SZ:002797) Haitong Securities·2024-05-05 02:02Investment Rating - The investment rating for the company is "Neutral" and is maintained [1]. Core Insights - The company focuses on fixed income, positioning itself as a unique player among listed securities firms. The reasonable value range is set between 5.46 and 6.19 yuan, maintaining a "Neutral" rating [3]. - In 2023, the company achieved operating revenue of 2.49 billion yuan, a year-on-year decrease of 4.7%, and a net profit attributable to shareholders of 330 million yuan, down 17.5% year-on-year [3]. - The company is actively transforming its brokerage business towards wealth management, with a focus on providing comprehensive product services throughout the customer lifecycle [3]. - The company has strengthened its business layout in the Beijing Stock Exchange, ranking first in the quality evaluation of brokerage practices in the first quarter of 2024 [3]. - The fixed income sales and trading business continues to gain recognition from clients and the market, with total fixed income sales amounting to 1.772 trillion yuan, an increase of 2.26% year-on-year [3]. - The asset management business has shown resilience, with total entrusted funds under management reaching 61.188 billion yuan by the end of 2023, an increase of 11.25% year-on-year [3]. Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 2.49 billion yuan, a decrease of 4.7% year-on-year, and a net profit of 330 million yuan, down 17.5% year-on-year. The earnings per share (EPS) was 0.09 yuan, with a return on equity (ROE) of 2.7% [3][4]. - For the first quarter of 2024, the company achieved operating revenue of 670 million yuan, a year-on-year decrease of 2.7%, and a net profit of 140 million yuan, an increase of 1.6% year-on-year [3]. Business Segments - Brokerage business revenue in 2023 was 350 million yuan, a decrease of 8.6% year-on-year, accounting for 14.1% of total operating revenue [3]. - Investment banking revenue in 2023 was 190 million yuan, a decrease of 31.8% year-on-year, while the first quarter of 2024 saw a revenue increase of 41.6% year-on-year [3]. - The asset management business generated revenue of 900 million yuan in 2023, down 12.1% year-on-year, with a slight decrease of 1.8% in the first quarter of 2024 [3]. Future Projections - The company expects net profits for 2024E-2026E to be 365 million yuan, 409 million yuan, and 459 million yuan, representing year-on-year growth of 10%, 12%, and 12% respectively [3][4]. - The projected EPS for the same period is 0.09 yuan, 0.10 yuan, and 0.11 yuan, with projected net assets per share of 3.64 yuan, 3.74 yuan, and 3.85 yuan [4].