Guolian Minsheng Sec(SH:601456) HUAXI Securities·2024-05-15 02:02Investment Rating - The report assigns an "Accumulate" rating to the company [2][3]. Core Views - The company plans to acquire 100% of Minsheng Securities, which is expected to facilitate future integration and development [2]. - The acquisition will enhance the company's platform for coordinated development in Wuxi and Shanghai, aligning with the Yangtze River Delta integration strategy [2]. - The deal is anticipated to leverage the strengths of both companies, with Minsheng Securities excelling in investment banking and research, while the company has advantages in wealth management and asset securitization [2]. Financial Projections - Revenue projections for 2024 are adjusted to 36.94 billion, with subsequent years forecasted at 42.70 billion for 2025 and 52.87 billion for 2026, reflecting a year-on-year growth of 24.98% and 15.60% respectively [5]. - Earnings per share (EPS) estimates are revised to 0.28 for 2024, 0.34 for 2025, and 0.41 for 2026, with corresponding price-to-book (PB) ratios of 1.64, 1.59, and 1.56 [3][5]. - The total assets are projected to reach 1,087.40 billion by 2026, with total liabilities expected to be 1,010.66 billion [6]. Market Context - The company's stock price closed at 10.46 on May 14, 2024, with a target price yet to be established [2]. - The stock has shown a significant increase of 51% during the suspension period, indicating strong market interest [2].