Caitong Securities(SH:601108) Haitong Securities·2024-05-05 02:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1][3]. Core Views - The company's wealth management transformation has shown significant results, with a high proportion of income from selling financial products. The asset management business has distinct characteristics, and the transition to active management and public offering has advantages. The reasonable value range is set at 8.57-9.35 yuan, maintaining the "Outperform the Market" rating [3][4]. Summary by Relevant Sections Financial Performance - In 2023, the company achieved operating income of 6.52 billion yuan, a year-on-year increase of 35.0%. The net profit attributable to the parent company was 2.25 billion yuan, up 48.4% year-on-year, with an EPS of 0.48 yuan and ROE of 6.67%, an increase of 1.71 percentage points year-on-year [3][4]. - The fourth quarter of 2023 saw operating income of 1.56 billion yuan, a year-on-year increase of 21.9% and a quarter-on-quarter increase of 5.6%. The net profit for the fourth quarter was 750 million yuan, up 71.4% year-on-year and 61.7% quarter-on-quarter [3][4]. Business Segments - The brokerage business income slightly increased to 1.20 billion yuan in 2023, accounting for 18.4% of total operating income. The average daily trading volume in the market was 962.5 billion yuan, down 4.0% year-on-year. The income from selling financial products was 192 million yuan, up 7.7% year-on-year, accounting for 16.0% of brokerage income [3][4]. - The investment banking business performed well, with income of 760 million yuan in 2023, a year-on-year increase of 68.4%. The underwriting scale for equity business increased by 142.7% year-on-year, while the bond underwriting scale rose by 80.4% [3][4]. Asset Management - The asset management business generated income of 1.55 billion yuan in 2023, a year-on-year increase of 6.4%. The total asset management scale at the end of 2023 was 276.5 billion yuan, up 12.4% year-on-year [3][4]. Future Projections - The company is expected to have EPS of 0.48, 0.54, and 0.60 yuan for the years 2024-2026, respectively. The BVPS is projected to be 7.79, 8.18, and 8.63 yuan for the same period. The company is given a P/B ratio of 1.1-1.2x for 2023, corresponding to a reasonable value range of 8.57-9.35 yuan [3][4].