Caitong Securities(SH:601108) AVIC Securities·2024-05-14 07:30Investment Rating - The investment rating for the company is "Buy" [1][5][17] Core Views - The company is steadily advancing its wealth management business and leveraging its regional advantages [1] - In 2023, the company achieved operating revenue of 6.517 billion yuan (+35.03%) and a net profit attributable to shareholders of 2.252 billion yuan (+48.43%) [1][6] - The company has seen significant growth in client assets, reaching a total of 779.5 billion yuan (+23.03%) [1][3] - The company successfully sponsored 6 IPO projects in the first quarter of 2024, ranking first in the number of IPOs in Zhejiang province [1][5] Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 6.517 billion yuan and a net profit of 2.252 billion yuan, with a basic earnings per share of 0.48 yuan [1][6] - For Q1 2024, the company achieved operating revenue of 1.41 billion yuan (-21.03%) and a net profit of 456 million yuan (-7.68%) [1] - The company's return on equity (ROE) for 2023 was 6.67%, an increase of 1.71 percentage points from the previous year [1] Wealth Management - The company has made significant strides in wealth management, with a client asset scale of 779.5 billion yuan, reflecting a growth of 23.03% [1][3] - The number of clients increased by 14%, reaching over 326,000 by the end of the year [1] - The company’s brokerage business net income for Q1 2024 was 297 million yuan (+8.24%) [1] Investment Banking - The company achieved investment banking net income of 1.41 billion yuan in Q1 2024, a decrease of 8.01% [1][5] - In 2023, the investment banking net income was 7.61 billion yuan, an increase of 68.36% [1][5] Asset Management - The asset management business generated net income of 3.19 billion yuan in Q1 2024 (+2.00%), with total assets under management reaching 276.5 billion yuan (+12%) [3] - The company’s asset management subsidiary reported revenue of 1.6 billion yuan, maintaining a position in the top five of the industry [3] Proprietary Trading - The proprietary trading income for Q1 2024 was 431 million yuan (-56.03%), while in 2023, it was 1.758 billion yuan (+1064.2%) [4] - The company increased its public fund investments, which reached 18.489 billion yuan (+55.37%) [4]