主营业务继续承压，研发维持高投入。24H1 证券业务收入34 亿元（YoY-5%），基金代销业务收入14 亿元（YoY-30%），金融数据服务收入0.9 亿元（YoY-13%），互联网广告服务收入0.2 亿元（YoY-25%）。费用端研发费用5.6 亿元（YoY+10%），管理费用11.5 亿元（YoY-2%）、管理费率23.2%（YoY+2.8pct）。24H1 公司年化ROE 为11.04%（YoY-1.6pct）。Matters:
Dongfang Wealth released its 2024 semi-annual report. In the first half of the year, it achieved total operating income of 4.945 billion yuan (YoY -14.00%); net profit to mother of 4.056 billion yuan (YoY -4.00%); total assets of 263.1 billion yuan (+10% compared to the end of the previous year), net assets belonging to the parent company of 75 billion yuan (+4.3% compared to the end of the previous year), EPS (diluted) 0.26 yuan, and BVPS 4.75 yuan.
Ping An's point of view:
The main business continues to be under pressure, and R&D investment remains high. 24H1 securities business revenue is 3.4 billion yuan (YoY -5%), fund sales revenue 1.4 billion yuan (YoY -30%), financial data services revenue 0.09 billion yuan (YoY -13%), and Internet advertising services revenue 0.02 billion yuan (YoY -25%). Cost-side R&D expenses 0.56 billion yuan (YoY +10%), management costs 1.15 billion yuan (YoY -2%), management fee 23.2% (YoY+2.8pct). 24H1 Company's annualized ROE is 11.04% (YOY-1.6pct).
Proprietary investment income continued to rise high, driving the decline in profit narrowing. 24H1's proprietary income was 1.6 billion yuan (YoY +42%), and the scale of proprietary investment was 101.5 billion yuan (YoY +26%, compared to the end of the previous year). The growth scale of proprietary investment in a single quarter was higher than 24Q1. Among them, transactional financial assets were +21% to 82.9 billion yuan at the beginning of the year, mainly driven by bonds and bank wealth management investments; investment in other equity instruments increased by +137% to 10.6 billion yuan compared to the beginning of the year, mainly perpetual bond investment. 24H1 corresponds to an annualized return on investment of 2.8% (YOY+0.2pct, 24q1+0.1pct month-on-month).
The share share of share-based transactions was relatively stable, and the market share of the two finance businesses was +0.2pct year over year. 1) Brokerage:
According to Wind, the average daily turnover of the 24Q2A stock market was 9482 (YoY -15%), and the average daily turnover in the first half of the year was 984.6 billion yuan (YoY -7%). The company's trading volume was 9.21 trillion yuan (YoY -6%), and the market share was 4.0% (YoY+0.04pct, -0.02pct at the end of the previous year). 2) Credit: According to Wind, the balance of the two loans at the end of 24Q2 was -7% to 1.48 trillion yuan, and the company's financing capital was -6% to 42.4 billion yuan at the end of the previous year, with an estimated market share of 2.9% (+0.23pct compared to the end of the previous year), but interest expenses were still high, especially as financing costs rose, and 24H1 interest net income of 1 billion yuan (YoY -8%).
Emerging equity funds continued to be sluggish, bond funds improved markedly year over year, and rate pressure dragged down fund business. According to Wind, the 24H1 market had 626 newly issued funds and a newly issued share of 660.7 billion shares (YoY -13%), of which equity funds (equities + hybrid) had a newly issued share of 110.3 billion (YoY -35%) and bond funds had a newly issued share of 536.9 billion shares (YoY +61%). However, the reduction in active equity fund management rates and changes in the fund holding size structure will drag down the company's final commission income. At the end of 24H1, the company's monetary fund sales were 351.7 billion yuan (YoY +13%) and non-commodity fund sales were 499.7 billion yuan (YoY -0.9%). The decline was narrower than in '23.
Investment advice: Market trading activity was relatively sluggish in the first half of the year, and the company's net profit forecast for 24/25/26 was lowered to 8.2/8.88/9.71 billion yuan (the original forecast was 9.07/10/11.12 billion yuan), an increase of 0.1%/8.3%/9.3% over the previous year. However, considering the company's stable and leading user traffic, stable brokerage market share, and increased credit business market share, the company's leading edge in Internet wealth management still exists. At the same time, the company continued to invest in R&D and continuously improve the product ecosystem. The “Wonderful Vision” financial model officially began closed testing in the first half of the year. In the first half of the year, the company also launched the “Double Improvement of Quality and Return” action plan to buy back 71.45 million shares, actively improve the company's quality and shareholder returns, and maintain the “recommended” rating.
Risk warning: 1) The equity market fluctuates greatly; 2) the macroeconomic downturn has led to a decrease in investors' risk appetite; 3) competition in the fund sales industry has increased unprecedentedly; 4) the volume of new development funds, fund subscriptions, and fund holdings have declined; 5) the exhibition of new businesses has been blocked.
