Event: The company released its 2023 annual report. During the reporting period, the company achieved revenue of 12.762 billion yuan, +36.86% year-on-year. The total profit realized was 2,557 billion yuan, an increase of 226.99% over the previous year. Achieved net profit of 1,800 million yuan to mother, +204.94% year-on-year.
Investment banking business revenue reached a record high. During the reporting period, the company's investment banking business achieved revenue of 1,255 billion yuan, +33.99% year-on-year. In 2023, the company completed 29 single shareholder underwriting projects, and the total underwriting scale of the project reached 19.215 billion yuan. This includes 11 IPO projects and 14 projects to issue shares to specific targets. The company completed an underwriting project of 204 single bonds, with an underwriting scale of 129.53 billion yuan. The company focuses on serving small and medium-sized enterprises, and the Beijing Stock Exchange ranks in the top 10 in the industry in terms of number of sponsorship orders and underwriting scale. The company successfully promoted the launch of the Qilu Stock Exchange's “Specialized, Special and New” panel, demonstrating the company's commitment and results in supporting the development of small and medium-sized enterprises.
Improve the Sino-Thai wealth service system and deepen financial technology empowerment. During the reporting period, the scale of the company's wealth management business exceeded 8.5 million customers, and the total assets managed by customers exceeded 1.2 trillion yuan. The company is committed to forming a “Sino-Thai Wealth” high-end series of service systems to meet the diverse needs of customers through highly personalized services, including various financial solutions such as investment consulting, asset allocation and wealth inheritance. Continuously strengthen the services of listed companies and improve the service system for small and medium-sized enterprises. The company continues to deepen its fintech empowerment. The number of monthly activity of Sino-Thai Qifutong is 5.0591 million, ranking 10th among brokerage apps.
The scale of asset management business has declined, and the product structure has been optimized. During the reporting period, the total scale of asset management business declined from RMB 218.786 billion in 2022 to RMB 122.071 billion. However, the company continues to optimize its product and service structure, particularly making adjustments in public funds, pooled asset management business, special asset management business, and single active asset management business. During the reporting period, the company completed the holding acquisition of Wanjia Fund. The products and services of Wanjia Fund have been successfully integrated into the company's overall business framework, bringing new customer groups and revenue sources to the company. The consolidated Wanjia Fund generated equity revaluation income of 658 million yuan, accounting for 25.72% of the total profit.
Investment advice: During the reporting period, the company's net profit to mother increased dramatically, and the performance was outstanding. Remarkable results have been achieved in asset management, wealth management, and the strategic layout of investment banking business.
The company's 2024-2026 revenue is expected to be +11.82%, +9.00%, and +6.09% year-on-year. Net profit attributable to mother was 2,321 billion yuan, 2,603 billion yuan, and 2,776 billion yuan, +28.99%, 12.17%, and 6.60% year-on-year. EPS is 0.33, 0.37, 0.40 yuan/share. The PE corresponding to the closing price on April 19, 2024 was 19.09, 17.02, 15.97 times. Maintain an “Overweight” rating.
Risk Warning: Capital Market Fluctuations, Macroeconomic Uncertainty, Slowing Profit Growth