One thing:

On August 29, 2023, Sino-Thai Securities announced its semi-annual report of 2023: the company's operating income in the first half of 2023 was 6.624 billion yuan, and its net profit was 1.639 billion yuan.

Main points of investment:

In the first half of the year, revenue improved significantly compared with the same period last year, and many business sectors of the company increased significantly.

In the first half of 2023, the company's operating income finally recorded 6.624 billion yuan, an increase of 32.11% over the same period last year. The growth rate of operating income became positive over the same period last year, and the overall business income of the company rebounded significantly compared with the same period last year. The operating income of the company's securities and alternative investment business sector recorded 848 million yuan, a year-on-year increase of 1.343 billion yuan. The operating income of the company's investment banking business recorded 706 million yuan, a substantial increase of 63.55% over the same period last year, while the operating income of asset management business and other businesses recorded 914 million yuan and 950 million yuan respectively, a rapid increase of 179.90% and 117.38% over the same period last year. The operating conditions of many business sectors of the company have grown significantly, leading to a significant rebound in revenue.

Gross profit margin, return to the mother of the net profit level rebounded sharply.

In the first half of 2023, the company's gross profit margin was 32.11%, an increase of 9.07 percentage points over the same period last year. With the obvious increase in operating income and a small increase in operating costs, the company's overall gross profit increased significantly by 84.11% compared with the same period last year. The company's net profit belonging to the parent company in the first half of the year was 1.639 billion yuan, a substantial increase of 79.79% compared with the same period last year. Mainly due to the increase in the company's gross profit, the company's net profit rebounded significantly compared with the same period last year.

The company's business operation is obviously improving, and the rating is expected to remain stable.

In the first half of 2023, in terms of investment banking business, the company completed 17 main underwriting projects, with the amount of main underwriting reaching 11.966 billion yuan, a sharp increase of 40.81% over the same period last year, including 7 IPO projects. In terms of wealth management business, the company opened 321100 new accounts, the trading volume of stocks and funds reached 5.42 trillion yuan, and the number of financial products sold on consignment increased by 1.8% over the end of last year. In terms of institutional business, the company's institutional customers increased by 5.17% at the end of the first half of the year compared with the beginning of the year, and the size of assets increased by 7.23%. According to the good operating condition of the company in the first half of the year and the overall situation of the recovery of China's economy, we continue to maintain the company's "overweight" rating.

Key issues of concern

Stock price catalyst (positive): China's economic recovery is good; the company's overall business is in good condition; the company's comprehensive financial service capacity and so on.

Risk tips (negative): uncertain expectations for the recovery of the world economy; shrinking business sectors such as corporate wealth management and futures; credit risk, etc.