2024-05-27 09:30Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 14.56 [2][3][13] Core Insights - The company's brokerage services are under pressure due to market volatility, leading to a decline in proprietary trading income. However, bond underwriting in investment banking has performed well, and the asset management business has completed its public transformation, resulting in a slight revenue decrease but an increase in actively managed AUM [2][3][15] Financial Performance Summary - For Q1 2024, the company reported revenue of RMB 7.21 billion, a decrease of 17.1% year-on-year, and a net profit attributable to shareholders of RMB 1.63 billion, down 27.5% year-on-year. The EPS was RMB 0.12, with an ROE of 1.3%, down 1.1 percentage points year-on-year [2][13][14] Brokerage Business - The brokerage revenue for Q1 2024 was RMB 1.26 billion, down 9.8% year-on-year, accounting for 17.4% of total revenue. The average daily trading volume in the market was RMB 1.0002 trillion, up 4.8% year-on-year, while the margin financing balance was RMB 1.5379 trillion, down 4.3% since the beginning of the year [2][14] Investment Banking Performance - The investment banking income surged to RMB 0.09 billion, an increase of 65.1% year-on-year. The bond underwriting volume reached RMB 84.4 billion, up 16.9% year-on-year, ranking 9th in the market [2][14][15] Asset Management Business - The asset management income for Q1 2024 was RMB 0.11 billion, up 7.3% year-on-year. The total asset management scale at the end of 2023 was RMB 94.6 billion, down 17.8% year-on-year. The company is actively developing unique products and enhancing its product spectrum [2][15] Proprietary Trading - The proprietary trading segment reported an investment profit of RMB 1.63 billion, down 32.5% year-on-year. The company adheres to a "low risk + absolute return" strategy, with a focus on dividend strategies for stable performance [3][15] Earnings Forecast - Projected EPS for 2024-2026 is RMB 0.81, 0.87, and 0.91 respectively, with BVPS of RMB 9.70, 10.27, and 10.87. The report assigns a P/B ratio of 1.5x for 2023 [3][10][16]