SINOLINK SECURITIES(SH:600109) Haitong Securities·2024-05-05 02:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][8]. Core Views - The company is enhancing its research capabilities and driving business synergy through investment banking and research. The investment strategy is stable, achieving high investment returns. In 2023, the company's proprietary business saw a significant rebound from a low base, contributing to performance improvement. The reasonable value range is set at 10.11-11.03 yuan, maintaining the "Outperform the Market" rating [6][8]. Financial Performance Summary - In 2023, the company achieved an operating income of 6.73 billion yuan, a year-on-year increase of 17.4%, and a net profit attributable to shareholders of 1.72 billion yuan, up 43.4% year-on-year. The corresponding EPS is 0.46 yuan, with an ROE of 5.4%, an increase of 1.2 percentage points year-on-year [7][9]. - For Q4 2023, the company reported an operating income of 1.70 billion yuan, a year-on-year increase of 2.6%, and a net profit of 480 million yuan, up 28.4% year-on-year [7]. - In Q1 2024, the company expects an operating income of 1.48 billion yuan, a year-on-year decrease of 24.0%, and a net profit of 370 million yuan, down 38.6% year-on-year [7]. Business Segment Performance - The wealth management brand has been fully upgraded, optimizing the client structure. In 2023, brokerage business income was 1.65 billion yuan, a slight decrease of 0.1% year-on-year, accounting for 24.5% of total operating income [7]. - The investment banking business reported income of 1.34 billion yuan in 2023, a year-on-year decrease of 21.3%, with a significant drop in Q1 2024 income by 43.3% year-on-year [7]. - The asset management business saw a decline in income to 90 million yuan in 2023, down 32.1% year-on-year [7]. Investment Strategy and Projections - The company is expected to achieve EPS of 0.45, 0.47, and 0.50 yuan for 2024, 2025, and 2026 respectively, with BVPS projected at 9.19, 9.62, and 10.07 yuan for the same years [8][9]. - The company maintains a reasonable valuation based on comparable company levels, with a P/B ratio of 1.1-1.2x for 2023 [8].