[Investing in TAR requires _ S points um: m from ar to y] Self-operating performance was good, with net profit returning to mother +34% year-on-year in 2023. The company's capital-light business consolidates the foundation, optimizes the layout of its capital-heavy business, and continuously enhances its ability to serve the real economy. The reasonable value range is 18.26-19.79 yuan/share, maintaining the “superior to the market” rating.
[Incident] Everbright Securities released its 2023 annual report, achieving operating income of 10.03 billion yuan, -6.9% year on year; net profit to mother of 4.27 billion yuan, +33.9% year over year; corresponding EPS of 0.93 yuan, ROE 6.9%, +1.6 pct year on year. The share of corporate broker/investment banking/asset management/interest/proprietary income was 28%/10%/18%/25%, respectively. The fourth quarter of 2023 achieved revenue of 2.28 billion yuan, +22.6% year over year and +44.5% month over month. Net profit attributable to mother was 90 million yuan, with a year-on-year average profit to loss. Losses for the fourth quarter of 2023 are expected to be mainly due to impairment charges.
Wealth transformation is deepening and practical, and business results are progressing steadily. In 2023, the company's brokerage revenue was 2.77 billion yuan, -16.0% year-on-year, accounting for 27.6% of revenue. The average daily share-based trading volume of the entire market was 962.5 billion yuan, -4.0% year-on-year. The company's revenue from selling financial products on consignment was 344 million yuan, -8.8% year-on-year, accounting for 12.4% of brokerage business revenue. The company's two financing balance was 34.3 billion yuan, +1% compared to the beginning of the year, 2.08% market share, -0.14pct year on year. In 2023, the company sold a total of 33.385 billion yuan of financial products, an increase of 26% over the previous year. Continue to build a buyer's investment business to achieve good customer experience and service value. By the end of 2023, the assets of clients signed up for the securities investment business were RMB 50.4 billion, an increase of 35% over the beginning of the year.
The investment banking business carries out the responsibilities of central enterprises and serves the real economy. The company's investment banking business revenue was 1.03 billion yuan, -19.6% year-on-year.
The underwriting scale of the equity business was -74.0% year-on-year, and the underwriting scale of the bond business was +24.9% year-on-year. Shareholders' underwriting scale was 5.33 billion yuan, ranking 28th; of these, there were 7 IPOs, raising 4.4 billion yuan; and 10 refinancing companies, with an underwriting scale of 1 billion yuan. The principal underwriting scale of bonds was 444 billion yuan, ranking 7th; of these, the underwriting scale of local government bonds, financial bonds, and medium-term notes was 1994 billion yuan, 66.8 billion yuan, and 51.5 billion yuan, respectively. There are 4 IPO reserve projects, ranking 30th, including 3 main boards in 2 cities and 1 GEM.
Guangzheng Asset Management continues to maintain product advantages in the “fixed income +” field. In 2023, the company's asset management business revenue was 1.01 billion yuan, -33.0% year-on-year. Asset management revenue for the fourth quarter was 315 million yuan, +11.7% year-on-year. Guang Securities Asset Management actively promotes public fund manager qualification applications, and promotes preparations for various public equity transformation in an orderly manner. At the end of 2023, Guangzheng's asset management scale was 30.3 billion yuan, -17.8% year-on-year; Everbright Prudential's management scale was 999 billion yuan, +22% year over year.
Fixed-income proprietary investment performance improved markedly year over year. In 2023, the company's investment income (including fair value) was 2.52 billion yuan, +129.4% year on year; fourth quarter investment income (including fair value) was 580 million yuan, +785.7% year over year. The company's equity investment business is based on absolute profit target orientation. Under a complex and difficult market environment, the overall asset portfolio achieved positive returns.
The company's fixed income proprietary investment business has further consolidated the investment and research foundation, improved the investment framework, enriched investment strategies, and steadily increased the allocation of high-quality bonds, and continued to increase in scale.
Investment advice: We expect the company's net profit per share for 2024-2026E to be 0.85, 0.92, and 1.02 yuan, respectively, and the net assets per share will be 15.22, 15.95, and 16.92 yuan, respectively. We gave it 1.2-1.3xp/B in 2024, with a corresponding reasonable value range of 18.26-19.79 yuan, maintaining the “better than the market” rating.
Risk warning: Trading volume continues to decline, and investment returns continue to decline due to increased equity market fluctuations.