Investment Rating - The report maintains a "Buy" rating for the company [9][12]. Core Views - The company's performance is recovering, with strong results in proprietary wealth management. The outlook is positive due to market recovery and the company's dual-driven growth strategy in wealth management and accelerated institutionalization [2][12]. Summary by Sections Financial Performance - In 2024, the company achieved operating revenue of 12.35 billion yuan and net profit attributable to shareholders of 2.16 billion yuan, representing year-on-year increases of 16.2% and 10.2% respectively. For Q1 2025, the figures were 2.79 billion yuan in revenue and 520 million yuan in net profit, with year-on-year increases of 17.5% and 57.3% respectively [7][12]. - The weighted average return on equity (ROE) increased by 0.11 percentage points to 3.81% in 2024 and by 0.34 percentage points to 0.90% in Q1 2025 [7][12]. Business Segments - In Q1 2025, revenue from brokerage, investment banking, asset management, interest, and proprietary trading were 660 million yuan, 130 million yuan, 40 million yuan, 320 million yuan, and 610 million yuan respectively, with year-on-year growth rates of 41.9%, 8.0%, 1.8%, 16.7%, and 82.2% [12]. - The company’s proprietary investment income for 2024 was 2.84 billion yuan, a significant year-on-year increase of 330.9%, with an estimated investment return rate of 3.01% [12]. Wealth Management and Asset Management - The company is deepening its wealth management efforts, with Q1 2025's average daily trading volume in the two markets reaching 1.52 trillion yuan, a year-on-year increase of 70.3%. The brokerage business revenue for Q1 2025 was 660 million yuan, up 41.9% year-on-year [12]. - The asset management business showed steady growth, with revenue of 160 million yuan in 2024, a year-on-year increase of 7.6%. The total asset management scale of the company reached 697.26 billion yuan by the end of 2024, with public fund scale growing by 16.0% [12]. Future Outlook - The report forecasts net profits of 2.367 billion yuan and 2.532 billion yuan for 2025 and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 21.38 and 19.98 [12].

Core Viewpoint - The company reported strong growth in Q1 2025, with total revenue reaching 34.9 billion yuan, a year-on-year increase of 41.9%, and net profit attributable to shareholders at 27.2 billion yuan, up 39.0% year-on-year [1][2]. Revenue and Profit Analysis - In Q1 2025, the company achieved total revenue (including investment income) of 41.9 billion yuan and net profit attributable to shareholders of 27.2 billion yuan, reflecting increases of 28.1% and 39.0% year-on-year, respectively [2]. - The weighted average return on equity (ROE) improved by 0.62 percentage points to 3.3% [1][2]. - Revenue from various business lines included e-commerce at 8.1 billion yuan (+8.0%), net interest income at 7.2 billion yuan (+37.3%), commission income at 19.6 billion yuan (+65.6%), and investment income at 7.0 billion yuan (-13.6%) [2]. Market and Business Performance - The fund distribution revenue stabilized and rebounded, primarily due to a recovery in the fund market, with new issuance of mixed and bond funds reaching 110.1 billion and 119.1 billion units, respectively, showing year-on-year increases of 101.8% and a decrease of 34.2% [2]. - The average daily trading volume in the market increased by 70.3% year-on-year to 1.52 trillion yuan, with the margin financing balance at 1.92 trillion yuan, up 24.8% year-on-year [3]. - The company maintained a stable market share in securities and credit business, with a financing balance of 61.03 billion yuan, holding a market share of 3.2% [3]. Cost Management and Profitability - The company demonstrated effective cost control, with sales, management, and R&D expenses at 0.7 billion, 5.9 billion, and 2.5 billion yuan, respectively, showing year-on-year changes of -16.1%, +5.6%, and -12.6% [4]. - The net profit margin improved by 5.1 percentage points to 64.8% due to better expense management [4]. - The company is viewed as a benchmark in the internet brokerage sector, with strong competitive advantages in customer acquisition and cost control, indicating robust growth potential in its securities business [4]. Future Outlook - The company is expected to achieve net profits attributable to shareholders of 11.36 billion yuan and 12.22 billion yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 28.8 and 26.7 times [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's wealth management transformation has shown significant results, although the self-operated investment has negatively impacted performance in the first quarter [4][5] - The total revenue and net profit for 2024 were 6.29 billion and 2.34 billion yuan, respectively, with a year-on-year change of -4% and +4%, aligning with expectations [4] - The first quarter of 2025 saw total revenue and net profit of 1.07 billion and 290 million yuan, respectively, reflecting a year-on-year decline of -24% and -37%, which was below expectations [4] - The company has adjusted its net profit forecasts for 2025 and 2026 to 2.4 billion and 3.2 billion yuan, respectively, down from previous estimates [4] Financial Performance Summary - The company reported a weighted average ROE of 6.59% for 2024, a slight decrease of 0.08 percentage points year-on-year [4] - The first quarter of 2025 showed an annualized weighted average ROE of 3.16%, down by 2.1 percentage points year-on-year [4] - The company's self-operated investment income decreased significantly, with a year-on-year drop of -95% in Q1 2025, attributed to a weakening bond market [6] - The company's total assets were projected to grow from 133.75 billion yuan in 2023 to 190.26 billion yuan by 2027 [9] Business Segment Performance - The brokerage net income for 2024 and Q1 2025 was 1.41 billion and 420 million yuan, respectively, with year-on-year increases of +18% and +41% [5] - Investment banking net income for 2024 and Q1 2025 was 520 million and 110 million yuan, respectively, reflecting declines of -31% and -24% due to a sluggish primary market [5] - Asset management net income for 2024 and Q1 2025 was 1.55 billion and 260 million yuan, with a slight decrease of -0.3% and a more significant drop of -18% [5] Valuation Metrics - The current stock price corresponds to a price-to-book ratio (PB) of 0.9 for 2025, 0.9 for 2026, and 0.8 for 2027 [4] - The earnings per share (EPS) estimates for 2025, 2026, and 2027 are 0.52, 0.68, and 0.78 yuan, respectively [9] - The company’s projected net profit margins are expected to improve from 37.2% in 2024 to 43.7% by 2027 [9]

| | | 主营业务分行业情况 | | | | | | --- | --- | --- | --- | --- | --- | --- | | 分行业 | 营业收入 | 营业成本 毛利率(%) | | 营业收入比 | 营业成本比 | 毛利率比上年 | | | | | | 上年增减(%) 上年增减(%) | | 增减(%) | | 财富及资产管理 | 12,340,525,278.02 11,470,020,909.62 | | 7.05 | 7.84 | 5.27 | 增加 2.26 个 | | | | | | | | 百分点 | | 投行及另类投资 | 1.360.111.124.16 904.636.311.54 | | 33.49 | -33.66 | -22.88 | 减少9.29个 | | | | | | | | 百分点 | | 机构及销售交易 | 3,613,241,291.25 736,746,529.55 | | 79.61 | 9337 | 1.40 | 增加 1849个 | | | | | | | | 百分点 | | 国际及其他业务 | 3,050,443,157.92 2,563,338 ...

Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company reported a revenue of 20.89 billion yuan for 2024, a year-on-year increase of 5.4%, and a net profit attributable to shareholders of 10.39 billion yuan, up 18.5% year-on-year [5] - The company's brokerage business revenue reached 6.18 billion yuan, growing 11.8% year-on-year, with a significant increase in the number of normal trading clients [7] - The investment banking business showed resilience, with a focus on enhancing its service capabilities and expanding its market presence [7] - The asset management business remained stable, with contributions from joint ventures like Bosera and China Merchants Fund [7] - The self-operated investment net income increased by 42.15% year-on-year, reflecting a stable growth strategy [7] - The company is expected to benefit from a recovering capital market, with adjusted profit forecasts for 2025-2027 showing net profits of 11.68 billion yuan, 13.45 billion yuan, and 15.19 billion yuan respectively [7] Financial Data and Profit Forecast - The company’s projected revenues for 2025, 2026, and 2027 are 24.01 billion yuan, 27.09 billion yuan, and 29.89 billion yuan respectively, with corresponding net profits of 11.68 billion yuan, 13.45 billion yuan, and 15.19 billion yuan [6][8] - The return on equity (ROE) is expected to improve from 8.84% in 2024 to 10.47% by 2027 [6] - The price-to-earnings (P/E) ratio is projected to decrease from 15.83 in 2024 to 10.63 in 2027, indicating potential value appreciation [6]

Core Insights - The company reported a revenue of 63.789 billion yuan for 2024, representing a year-on-year increase of 6.20%, and a net profit attributable to shareholders of 21.704 billion yuan, up 10.06% year-on-year [1] - The fourth quarter saw a revenue of 17.648 billion yuan, a year-on-year increase of 23.75%, and a net profit of 4.905 billion yuan, which is up 48.32% year-on-year [1] - The company experienced significant growth in its brokerage and investment banking segments in Q4, with brokerage revenue increasing by 56.40% quarter-on-quarter [1] Financial Performance - The weighted average ROE for the year was 8.09%, an increase of 0.28 percentage points year-on-year [1] - In Q4, the revenue breakdown was as follows: brokerage 22.13%, investment banking 8.34%, asset management 18.83%, interest income 1.02%, and investment 29.12% [1] Investment Strategy - The company increased its bond allocation significantly in its TPL account, with bonds totaling 339 billion yuan, accounting for 49.07% of the portfolio by year-end [2] - The OCI equity account saw substantial growth, with holdings reaching 90.668 billion yuan, a year-on-year increase of 853% [2] International Business - The company's overseas business revenue reached 10.948 billion yuan, accounting for 17.16% of total revenue, driven by business expansion and high foreign exchange gains [2] - The company ranked second in Hong Kong stock underwriting with a total of 2.717 billion USD completed, and first in underwriting offshore bond projects with a scale of 5.048 billion USD [2] Capital Management - The company reported a significant increase in wealth management and asset management scale, with over 15.8 million wealth management clients, a year-on-year increase of 12% [3] - The effective leverage ratio increased to 4.72 times by year-end, up 0.25 times from the beginning of the year, primarily due to financial asset investments [3]