[Event] Zheshang Securities announced 2023 interim results: in the first half of 2023, the company achieved operating income of 8.46 billion yuan, +13.3%; net profit of 91 billion yuan, +25.3%; corresponding EPS of 0.24 yuan, ROE of 3.4%. The second quarter achieved revenue of 3.53 billion yuan, -18.6% year on year and -28.5% month on month. Net profit for the return mother was 4.2 billion yuan, +4.8% year on year and -13.2% month on month.
Wealth management's characteristic brand advantages were initially formed, and the business model was transformed from product sales to asset allocation. The brokerage business revenue of Zheshang Securities in the first half of 2023 was 1.25 billion yuan, +28.6% year-on-year, accounting for 14.8% of revenue. The average daily stock trading volume of the entire market was 1027.1 billion yuan, -2.0%; the company's revenue from brokerage financial products was 121 million yuan, -28.2%, accounting for 9.70% of brokerage revenue, and 19.9 billion yuan, +22.8%. In the first half of the year, the company strategically integrated top-level design, wealth management business and research business, explored research+new wealth development models, and built new core competitiveness for wealth management business. In the first half of the year, the company insisted on being guided by customer needs in terms of business model and focused on promoting FOF product transformation and layout. In the first half of 2023, the company's two finance balance was 18.8 billion yuan, +9.3% from the beginning of the year, and the total market balance of two loans was 1588.5 billion yuan, +3.1% from the beginning of the year.
Strengthen project reserves and comprehensive service capabilities, and make every effort to expand investment business. The company's investment banking revenue for the first half of 2023 was 480 million yuan, +81.4% year-on-year. The underwriting scale of the equity business was +85.4%, and the underwriting scale of the bond business was +174.9%. 3) Shareholder underwriting scale of 6.32 billion yuan, ranking 23rd; including 2 IPOs with a capital raising scale of 3 billion yuan; 3 refinancing companies, with an underwriting scale of 3.3 billion yuan. The underwriting scale of bonds was 77.6 billion yuan, ranking 22nd; of these, the underwriting scale of corporate bonds, corporate bonds, and financial bonds was 69.4 billion yuan, 4.9 billion yuan, and 2 billion yuan respectively. There are 13 IPO reserve projects, ranking 18th, including 5 on the main boards of the two markets, 5 in the Beijing Stock Exchange, and 3 in the GEM.
Out of trouble, the size of assets showed an upward trend. In the first half of 2023, the company's asset management business revenue was 180 million yuan, -20.3% year-on-year, and the asset management scale was 96.9 billion yuan, -7.4% year-on-year, and +5.7% from the beginning of the year. After overcoming the double suppression of the decline in business scale brought about by the new asset management regulations and the drastic adjustment of the bond market at the end of last year, the company's overall scale began to show a continuous upward trend.
Self-employment declined year-on-year in the second quarter. The company's investment income (including fair value) for the first half of 2023 was 890 million yuan, +139.0% year-on-year; investment income (including fair value) for the second quarter was 280 million yuan, -27.2% year-on-year.
Investment suggestions: We estimate that the company's 2023-25E EPS will be 0.51, 0.59, and 0.69 yuan respectively, and BVPS will be 7.08, 7.51, and 8.01 yuan respectively. Using the comparable company valuation method, we gave it 1.7-1.8XPb in 2023, corresponding to a reasonable value range of 12.04-12.74 yuan/share, maintaining a “superior to market” rating.
Risk warning: The company's various businesses are highly correlated with the macroeconomic environment and capital market trends. In the event of regulatory changes, it will have a major impact on the company.