Investment Rating - The investment rating for the company is "Outperform the Market" [3] Core Views - The company maintains a solid leadership position in the investment banking sector, with wealth management rapidly expanding through product, service, and model innovation, supported by financial technology [3] - The reasonable value range for the company's stock is estimated to be between 14.25 and 16.29 HKD, maintaining the "Outperform the Market" rating [3] Financial Performance Summary - In Q1 2024, the company reported operating revenue of 3.87 billion CNY, a year-on-year decrease of 37.6%, and a net profit attributable to shareholders of 1.24 billion CNY, down 45.1% [3] - The earnings per share (EPS) for Q1 2024 is 0.22 CNY, with a return on equity (ROE) of 1.2%, a decline of 1.3 percentage points year-on-year [3] - The brokerage business faced pressure, with revenue of 830 million CNY in Q1 2024, down 32.8% year-on-year, accounting for 21.4% of total revenue [3] - The investment banking business remains strong, with a bond underwriting scale that continues to rise and a rich IPO pipeline [3] Business Segment Performance - The investment banking revenue in Q1 2024 was 450 million CNY, a decrease of 25.0% year-on-year, with equity underwriting down 81.5% and bond underwriting down 5.6% [3] - The company has a strong position in the equity underwriting market, ranking second with a total equity underwriting scale of 9.48 billion CNY, including 3 IPOs raising 1.2 billion CNY [3] - The asset management business saw a revenue decline of 17.9% year-on-year in Q1 2024, with total assets under management at 552.6 billion CNY [3][8] Future Earnings Projections - The projected net profit for 2024 is 5.716 billion CNY, with expected earnings per share of 1.18 CNY [8] - The company anticipates a gradual recovery in revenue, with estimates of 34.91 billion CNY for 2024, 37.14 billion CNY for 2025, and 38.50 billion CNY for 2026 [8] Valuation Comparison - The company's stock is currently valued at 33.74 HKD, with a projected PE ratio of 26.5 for 2023 and a PB ratio of 1.8 for 2024 [10]
中金公司：公司季报点评：业务全线承压，投行保持优势