SCS(SH:601555) Tai Ping Yang·2024-06-07 01:02Investment Rating - The report maintains a "Buy" rating for Dongwu Securities, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [1][5]. Core Views - Dongwu Securities reported a revenue of 11.28 billion yuan for 2023, a year-on-year increase of 7.58%, and a net profit of 2.00 billion yuan, up 15.38% year-on-year. The weighted average return on equity was 5.16%, an increase of 0.54 percentage points from 2022 [2][3]. - The company achieved significant growth in financial investments, with a total investment scale reaching 90.56 billion yuan at the end of 2023, a 27.02% increase from the beginning of the year. The trading financial assets reached 53.64 billion yuan, up 74.43% year-on-year [2][3]. - Despite challenges in brokerage and investment banking businesses, the bond underwriting performance was strong, with 385 bonds underwritten in 2023, totaling 151.8 billion yuan, representing increases of 28.76% and 23.91% year-on-year, respectively [2][3]. Financial Performance Summary - For 2023, the company reported operating revenue of 11.28 billion yuan and a net profit of 2.00 billion yuan. The projected revenues for 2024, 2025, and 2026 are 11.59 billion yuan, 12.53 billion yuan, and 13.97 billion yuan, respectively, with corresponding net profits of 2.10 billion yuan, 2.37 billion yuan, and 2.70 billion yuan [3][4]. - The diluted earnings per share are projected to be 0.40 yuan for 2023, increasing to 0.42 yuan in 2024, 0.48 yuan in 2025, and 0.54 yuan in 2026 [3][4].