Event: The company released its 2023 annual report. During the reporting period, the company achieved revenue (net amount method) of 1,927 billion yuan, +21.33% year-on-year. Achieved net profit of 701 million yuan to mother, +26.33% year-on-year.

As of the end of the reporting period, the total assets of the company were 43.201 billion yuan, +8.49% year on year; owners' equity attributable to the parent company was 12.347 billion yuan, +2.08% year over year. The weighted average return on net assets was 5.74%, +0.19pct year over year.

Excellent fixed income performance has driven a significant increase in investment business performance. During the reporting period, the company's investment business revenue was 100 million yuan, accounting for 46.74% of the company's revenue, or +94.03% over the same period last year. Among them, the fixed income business achieved operating income of 855 million yuan, +20.76% over the same period last year, while income from equity securities investment business and alternative investment business turned a loss into a profit. Under the favorable environment of the bond market (China Bond Comprehensive Wealth (Total Value) Index rose 4.78%), the company continued to optimize its position structure, reduce risk through diversification of investment, use hedging tools to defend well, and maintain portfolio stability. The fixed income investment business performed well, driving a sharp increase in investment business performance.

The scale of the asset management business has increased. The company's asset management business achieved revenue of 559 million yuan, accounting for 29.01% of the company's revenue. The net product value was $13.336 billion, +21.52% YoY. The company gives full play to the advantages of fixed income products, extends to equity asset management business, and promotes business model optimization. The scale of the company's active management products increased significantly. The number of assets managed during the lifetime was only 630, an increase of 101 over the end of the previous year. The average monthly scale of private equity asset management ranked 15th in the industry, an increase of 1 place over the same period last year. The number of private equity funds managed by the company during the reporting period was 13, an increase of 3 over the end of the previous year.

Investment banking businesses are under pressure. During the reporting period, the investment banking business achieved revenue of 118 million yuan, or -19.64% year-on-year. IPOs have been tightened in stages, and the decline in investment banking business revenue is mainly due to the impact of the market environment. The number of bonds underwritten by the company as lead underwriter was 63, with a lead underwriting amount of 18.793 billion yuan. As a project manager, a total of 25 ABS products were distributed, with a distribution scale of 15.794 billion yuan. As a planned sales organization, it sold a total of 33 ABS products, with a sales scale of 14.068 billion yuan. The scale of corporate bonds and sales has been rising steadily.

Investment advice: The company's performance advantage is obvious, and the core business is optimized and upgraded. The company's revenue for 2024-2026 is estimated to be 23.77 billion yuan, 27.06 billion yuan, and 3,024 billion yuan, respectively; net profit to mother will be 916, 10.27, and 1,248 million yuan, +30.66%, +12.16%, and +21.44% year-on-year. EPS was 0.34, 0.38, and 0.46 yuan/share, respectively. PE corresponding to the closing price on April 16 was 58.01, 51.72, 42.59 times. Maintain an “Overweight” rating.

Risk warning: tightening regulatory policies, capital market fluctuations, slowing investment business growth