Haitong Securities·2024-05-07 01:32Investment Rating - The investment rating for the company is "Outperform the Market" [2] Core Views - The company successfully took control of and consolidated Huashan Fund, with a smooth start in public fund product layout. The brokerage business has seen a decline in market activity, while the equity investment banking business is under pressure due to high base effects. The reasonable value range is set at 17.24-18.96 CNY, maintaining the "Outperform the Market" rating [4][5] Summary by Sections Financial Performance - In Q1 2024, the company achieved operating revenue of 7.98 billion CNY, down 14.0% year-on-year, and a net profit attributable to shareholders of 2.49 billion CNY, down 18.1% year-on-year, with an EPS of 0.26 CNY and ROE of 1.6%, a decrease of 0.5 percentage points year-on-year [4][5] - The revenue breakdown includes brokerage (19%), investment banking (8%), asset management (11%), interest income (4%), and proprietary trading (30%) [4] Business Segments - The wealth management business is accelerating the construction of a "consultant-driven, technology-enabled" model. Q1 2024 brokerage revenue was 1.5 billion CNY, down 6.8% year-on-year, accounting for 18.8% of total revenue [5] - The investment banking segment reported revenue of 640 million CNY in Q1 2024, down 2.7% year-on-year, with equity underwriting down 33.9% and bond underwriting up 30.4% [5] - Asset management revenue was 920 million CNY in Q1 2024, down 13.3% year-on-year, with Huashan Fund's managed assets growing to 675.29 billion CNY, up 8.8% year-on-year [5] Earnings Forecast - The company expects EPS for 2024-2026 to be 1.20, 1.32, and 1.48 CNY respectively, with BVPS of 17.24, 17.96, and 18.75 CNY respectively. A P/B ratio of 1.0-1.1x is applied for 2024, corresponding to a reasonable value range of 17.24-18.96 CNY [5][10]