Beijing (SZ:300803) Haitong Securities·2024-05-27 00:02Investment Rating - The report assigns an "Outperform" rating to the company [2]. Core Insights - The company has entered a growth phase, with a compound annual growth rate (CAGR) of 21.4% in revenue and 27.6% in net profit from 2018 to 2022. However, in 2023, revenue decreased by 11.3% to 1.11 billion yuan, and net profit fell by 78.5% to 73 million yuan due to a downturn in the capital market and increased management expenses [5][17]. - The company focuses on financial information services, maintaining a high gross margin above 80% from 2013 to 2023, which is among the leading levels in comparable companies [5][23]. - The acquisition of a 34.2% stake in Vanguard Fund enhances the company's wealth management capabilities, positioning it to develop a business model centered on financial information services, with securities and funds as complementary wings [6][11]. Summary by Sections 1. Company Overview - The company has been dedicated to financial information services since its establishment in 2001, becoming a comprehensive large-scale financial information service enterprise over 25 years [11]. 2. Financial Performance - The company has shown a good growth trend, with significant revenue and profit recovery since 2019. However, 2023 saw a decline in both revenue and net profit due to market conditions [17]. - Revenue for 2023 was 1.11 billion yuan, down 11.3% year-on-year, while net profit was 73 million yuan, down 78.5% [7]. 3. Financial Information Services - The financial information service business is the largest source of revenue and profit, consistently accounting for around 90% of total revenue from 2017 to 2023 [23]. - The company has maintained a gross margin above 80% from 2013 to 2023, indicating strong profitability compared to peers [23]. 4. Future Growth Potential - The integration of Maigao Securities is expected to create a second growth curve for the company, with significant revenue growth projected for 2024-2026 [6][7]. - The company anticipates net profits of 328 million yuan, 495 million yuan, and 629 million yuan for 2024E, 2025E, and 2026E, respectively, reflecting substantial growth rates [6][7]. 5. Cost Management - The company has maintained stable expense ratios, with sales expenses around 50% of revenue due to a direct sales model targeting high-net-worth individuals [35][41]. - Management expenses have increased due to investments in Maigao Securities, but the overall management expense ratio remains controlled [41].