Beijing (SZ:300803) Guolian Securities·2024-05-08 01:32Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 57.95 yuan, based on a 95 times PE for 2024 [5][7][8]. Core Views - The company's financial information service business is expected to recover as market conditions improve, despite a significant decline in revenue due to seasonal factors [2]. - The securities business, particularly through Mai Gao Securities, continues to be profitable, with substantial year-on-year growth in various income streams [3]. - The company is investing in brand promotion and customer expansion, which has led to a notable increase in paid users [4]. Financial Performance Summary - In Q1 2024, the company reported revenue of 294 million yuan, a year-on-year decrease of 13.17%, and a net profit of 17 million yuan, down 70.74% year-on-year [1]. - The revenue forecast for 2024-2026 is projected at 1.344 billion, 1.587 billion, and 1.879 billion yuan, with growth rates of 36%, 18%, and 18% respectively [5][6]. - The net profit forecast for the same period is expected to be 251 million, 283 million, and 324 million yuan, with growth rates of 245%, 13%, and 14% respectively [5][6]. Business Segments - The financial information service segment is highly correlated with capital market conditions, and while it faced challenges in Q1 2024, recovery is anticipated [2]. - Mai Gao Securities has shown strong performance with brokerage income, net interest income, and net investment income increasing by 179%, 133%, and 192% year-on-year respectively [3]. - The company’s cost structure has been impacted by increased expenses related to the expansion of its securities business, with sales, management, and R&D expense ratios rising [4].