Investment Rating - The investment rating for the company is "Accumulate (Maintain)" [1] Core Views - The company achieved an operating income of 20.891 billion yuan in 2024, a year-on-year increase of 5.40%, and a net profit attributable to shareholders of 10.386 billion yuan, up 18.51% year-on-year [5][8] - The company’s investment income (including fair value changes) significantly increased, contributing to a solid foundation for net profit recovery [6][22] - Despite a decline in market share for brokerage services, the company remains among the top five in key brokerage metrics [6][11] - The company is expected to benefit from government policies aimed at fostering strong firms and building a first-class investment bank [6][26] Summary by Sections Financial Performance - In 2024, the company reported a basic earnings per share (EPS) of 1.13 yuan, a 20.21% increase year-on-year, and a return on equity (ROE) of 8.82%, up 0.91 percentage points [5][8] - The proposed dividend for 2024 is 3.77 yuan per share (including tax), with a total dividend payout ratio of 40.02% of the net profit attributable to shareholders, an increase of 15 percentage points year-on-year [8] Business Segments - The proportion of brokerage and investment income increased, while the net income from investment banking and asset management decreased [5][9] - The company’s brokerage business net income increased by 11.79% year-on-year, despite a slight decline in market share [11][12] - The investment banking segment saw a significant decline in net income, down 34.25% year-on-year, due to a drop in equity financing [13] Investment Strategy - The company’s investment strategy focuses on high-dividend investments and diversified investment strategies, achieving a 33.23% year-on-year increase in investment income [22] - The company is actively developing capital intermediary transactions and quantitative strategies in its equity derivatives business [22] Future Projections - The company expects EPS of 1.16 yuan and 1.22 yuan for 2025 and 2026, respectively, with corresponding book value per share (BVPS) of 14.00 yuan and 14.79 yuan [6][26] - The price-to-book (P/B) ratios are projected to be 1.22 and 1.15 for 2025 and 2026, respectively, based on the closing price of 17.07 yuan on April 9 [6][26]

Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected increase in stock price relative to the market index [6][26][33]. Core Views - The company achieved a revenue of 20.891 billion yuan in 2024, representing a year-on-year increase of 5.40%, and a net profit attributable to shareholders of 10.386 billion yuan, up 18.51% year-on-year [5][8]. - The report highlights that while the overall market share in equity trading has slightly declined, the brokerage business remains among the top five in the industry [6][26]. - The company is expected to benefit from government policies aimed at fostering strong firms and limiting weaker ones, positioning it well for future growth [6][26]. Summary by Sections Financial Performance - In 2024, the company reported a basic earnings per share (EPS) of 1.13 yuan, a 20.21% increase year-on-year, and a return on equity (ROE) of 8.82%, up 0.91 percentage points [5][8][31]. - The proposed dividend for 2024 is 3.77 yuan per share (before tax), with a total dividend payout ratio of 40.02% of the net profit attributable to shareholders, an increase of 15 percentage points year-on-year [8][31]. Business Segments - The brokerage and investment income (including fair value changes) have increased in proportion, while the investment banking and asset management segments have seen a decline in their revenue contributions [5][9]. - The company’s brokerage business net income increased by 11.79% year-on-year, despite a slight decrease in market share to 4.51% [11][12]. - The investment banking segment experienced a significant decline in revenue, with a 34.25% drop in net income from fees, attributed to a decrease in equity financing activities [13][26]. Investment Strategy - The company has successfully enhanced its investment strategies, focusing on high-dividend investments and diversified approaches, leading to a 33.23% increase in investment income [22][26]. - The report anticipates EPS of 1.16 yuan and 1.22 yuan for 2025 and 2026, respectively, with corresponding book value per share (BVPS) of 14.00 yuan and 14.79 yuan [6][26][31].

Core Viewpoint - The company has demonstrated resilience and growth in various business segments despite a challenging market environment, with significant increases in revenue and market share in key areas such as wealth management, investment banking, and asset management [5][19][30]. Group 1: Company Overview - The company is focused on providing a wide range of financial products and services to individual, institutional, and corporate clients, with major business segments including wealth management, investment banking, investment management, and trading [7][28]. - The company has appointed a new securities affairs representative effective February 21, 2025 [4]. Group 2: Financial Performance - In 2024, the company reported a total revenue distribution across its business segments: wealth management and institutional business (102.33 billion RMB), investment banking (8.58 billion RMB), investment management (9.24 billion RMB), trading (63.34 billion RMB), and other businesses (25.43 billion RMB) [7]. - The company plans to distribute a cash dividend of 3.77 RMB per 10 shares to shareholders, totaling approximately 3.28 billion RMB based on the total share count as of December 31, 2024 [3]. Group 3: Market Environment - The overall economic environment in China remained stable in 2024, with a focus on high-quality development and increased support for capital markets [5]. - The total market size of ETFs reached 3.78 trillion RMB by the end of 2024, reflecting an 85.05% year-on-year increase [5]. - A-share listed companies distributed dividends totaling 2.39 trillion RMB, marking a 7.15% increase year-on-year, the highest in history [5]. Group 4: Wealth Management and Institutional Business - The A-share market saw a significant increase in trading volume, with stock fund trading volume reaching 29.58 trillion RMB, a 22.90% increase year-on-year [8]. - The company has enhanced its wealth management services by focusing on digital transformation and improving customer experience through various initiatives [9][10]. Group 5: Investment Banking - The A-share equity financing market experienced a significant decline, with total equity financing down 72.76% year-on-year, while the Hong Kong IPO market saw a substantial increase of 89.47% [21][22]. - The company ranked 7th in A-share equity underwriting and 8th in IPO underwriting, showing resilience in a challenging market [24]. Group 6: Investment Management - The asset management sector is growing, with the company’s total asset management scale reaching 2.67 trillion RMB by the end of 2024 [30]. - The company has successfully launched new public fund products and is expanding its cross-border business [30]. Group 7: Trading and Investment - The company has actively developed its trading strategies, focusing on high-dividend investments and utilizing advanced technologies for market analysis [39][41]. - The company’s foreign exchange business has expanded significantly, maintaining a strong market presence [42]. Group 8: Future Outlook - The company aims to strengthen its wealth management and investment banking capabilities while enhancing digital services and risk management practices [19][27][36].