2023 Annual Report Overview: CITIC Securities achieved operating income of 60.68 billion yuan, -7.74% year over year; realized net profit to mother of 19.721 billion yuan, -7.49% year over year; basic earnings per share of 1.30 yuan, -8.45% year on year; weighted average return on net assets of 7.81%, -0.86 percentage points year on year. It is proposed to pay 4.75 yuan (tax included) in 2023.
Comment: 1. In 2023, the share of the company's investment income (including changes in fair value) increased, and the share of brokerage, investment banking, asset management, interest, and other revenue declined. 2. The wealth management business and institutional brokerage business remained industry-leading, and the net income from the consolidated brokerage business was -8.47% compared to the same period. 3. The decline in the lead underwriting scale of IPOs was significant, which in turn dragged down the overall performance of the investment banking business. Net income from processing fees for consolidated investment banking operations was -27.28% compared to the same period last year. 4. The scale of brokers' asset management and management fee revenue both declined, and the public fund business was relatively stable. Net revenue from processing fees from consolidated asset management business was -9.97% year-on-year. 5. Proprietary business establishes a diversified business framework, maintains a business pattern with relatively stable returns, and consolidated investment income (including changes in fair value) was +22.82% compared to the same period last year. 6. The total scale of the credit business continued to grow, and the net income from consolidated caliber interest was -30.61% year-on-year. 7. Overseas business maintained industry leadership, with revenue +14.78% year-on-year.
Investment advice: Although the company's brokerage, investment banking, and asset management business declined to varying degrees during the reporting period due to the market environment, the industry position was stable; the proprietary business established a diversified business framework, increased non-directional layout, and investment income (including changes in fair value) remained relatively stable; overseas business operated steadily, and revenue continued to increase. As an industry leader, the company's performance fluctuations have subsided markedly in recent years, and total profit has remained at a high level. The company's 2024 and 2025 EPS is expected to be 1.25 yuan and 1.37 yuan, respectively, and the BVPS will be 18.00 yuan and 19.08 yuan respectively. Based on the closing price of 19.16 yuan on April 3, the corresponding P/B will be 1.06 times and 1.00 times, respectively, maintaining an investment rating of “increase in holdings”.
Risk warning: 1. The weakening equity and fixed income market environment has led to a decline in the company's performance; 2. Risk of market fluctuations; 3. The policy effects of investment-side reforms fall short of expectations