2024-05-06 07:30Investment Rating - The report assigns an "Outperform" rating to Orient Securities with a target price of RMB 11.58 [1][11]. Core Views - The bond underwriting volume for Orient Securities in Q1 2024 increased year-on-year, indicating positive long-term growth potential in wealth management transformation and fund management [11]. - The company's Q1 2024 results showed a revenue of RMB 3.61 billion, down 18.6% year-on-year, and a net profit attributable to shareholders of RMB 0.89 billion, down 37.9% year-on-year [11]. - The report highlights a significant increase in bond underwriting volume by 53% year-on-year, ranking the company 6th in the market [11]. Financial Performance Summary - For Q1 2024, the company achieved a brokerage income of RMB 0.49 billion, down 30.1% year-on-year, which accounted for 13.5% of total revenue [11]. - The investment banking income for Q1 2024 was RMB 0.27 billion, down 1.2% year-on-year, while the bond underwriting volume was RMB 0.1026 trillion, up 52.9% year-on-year [11]. - The asset management income decreased to RMB 0.36 billion, down 38.5% year-on-year, with total asset management scale at RMB 0.2358 trillion, down 17.2% year-on-year [11]. Earnings Forecast - The forecasted EPS for Orient Securities for 2024, 2025, and 2026 is RMB 0.32, RMB 0.35, and RMB 0.43 respectively, with BVPS projected at RMB 8.91, RMB 9.18, and RMB 9.51 [12].