分项来看，代理买卖收入18 亿元，同比-12%；交易席位租赁收入4 亿元，同比-26%；代销金融产品3.5 亿元，同比-18%。收入下滑主要由于市场交投低迷。面对降费大趋势，公司财富管理持续强化投顾服务，优化产品供给。2024H1 achieved operating income of 9.5 billion yuan, -29% YoY; net profit to mother 2.9 billion yuan, or -34% YoY. At the end of 24H1, the company's total assets were 525.1 billion yuan, the same as at the beginning of the year; net assets attributable to mother were 102.6 billion yuan, +5% compared to the beginning of the year. ROE 3.12%, YoY -2.29 pct. The operating leverage was 4.25 times, which declined somewhat.
Overall overview: Excellent asset management, looking forward to the return of the labeling business. 2024H1 achieved operating income of 9.5 billion yuan, -29% YoY; net profit to mother 2.9 billion yuan, or -34% YoY. At the end of 24H1, the company's total assets were 525.1 billion yuan, the same as at the beginning of the year; net assets attributable to mother were 102.6 billion yuan, +5% compared to the beginning of the year. ROE 3.12%, YoY -2.29 pct. Operating leverage was 4.25 times lower. Proprietary employment/broker/investment banking/asset management/credit accounted for 42%/30%/12%/8%/5% of the main revenue, respectively, and +5/+6/-10/+3/-5 pct.
Fee business: Brokerage investment banks are under pressure, asset management performance is outstanding, and we look forward to major financial management transformation and underwriting. (1) Under pressure from brokers, the market declined, and the transformation of the investment business was ongoing. 24H1 brokerage revenue was 2.5 billion yuan, -10% YoY.
In terms of items, agency trading revenue was 1.8 billion yuan, -12%; transaction seat rental revenue was 0.4 billion yuan, -26% YoY; and consignment financial products were 0.35 billion yuan, -18% YoY. The decline in revenue was mainly due to sluggish market transactions. Facing the trend of fee reduction, the company's wealth management continues to strengthen investment services and optimize product supply.
As of 24H1, the company's financial product holdings exceeded 210 billion yuan, and buyers' customized business revenue was +24% year-on-year. (2) Investment banks are struggling in the short term, and long-term business is still expected to flourish. 24H1 Investment Bank's revenue was 1 billion yuan, -62% YoY. 24H1's IPO lead underwriting amount was 1.8 billion yuan, -94% year over year; refinancing lead underwriting amount was 2.6 billion yuan, -93% year over year; and bond underwriting amount was 700.5 billion yuan, -4% year over year, ranking second in the industry. As of 24H1, the company had 32 IPOs under review and 18 refinancing projects under review, both ranking second in the industry. The company's project reserves are sufficient, and investment bank revenue is limited in the short term, but when the primary market recovers, the investment bank label business will still shine brightly. (3) The performance of asset management was outstanding, and the results of active management transformation were remarkable. 24H1 asset management revenue was 0.64 billion yuan, +5% year-on-year. As of 24H1, the company's asset management AUM was 522 billion yuan, +11% compared to the beginning of the year; CITIC Construction Investment Fund AUM was 113.7 billion yuan, +21% compared to the beginning of the year. It is expected that the company will actively manage the transformation, seize the structural situation of the bond bull market, and achieve scale growth and revenue growth.
Capital business: Self-employment is lackluster, and credit is under pressure. (1) Self-employment is lackluster. 24H1's own revenue was 3.5 billion yuan, -18% YoY. As of 24H1, transactional financial assets were 207.9 billion yuan, -3% from the beginning of the year; derivative financial assets were 7.1 billion yuan, +69% from the beginning of the year; investments in other equity instruments were 1.5 billion yuan, an increase of 1.4 billion yuan over the beginning of the year. Non-directional fixed income investments are expected to contribute to self-employment, and the high base in previous years slightly suppressed year-on-year performance. (2) The market is sluggish, dragging down credit. 24H1's net interest income was 0.4 billion yuan, -65% YoY.
As of 24H1, the company's two financing balances were 52.6 billion yuan, -11% year-on-year, with a market share of 3.55%, the same as at the beginning of the year; buying and reselling financial products was 23 billion yuan, +65% compared to the beginning of the year. It is expected that insufficient market demand, shrinking business, and narrowing interest spreads due to compounded liquidity easing will drag down business performance.
Investment advice: Maintain a “Highly Recommended” rating. The company continues to improve its various businesses, has rich management experience, and long-term ROE leadership. The company's investment banking label is still bright, and the wealth management transformation has achieved remarkable results. Self-employment is mainly fixed income investments, and the derivatives business is progressing steadily. Looking ahead to the future market, supervising and caring for the capital market, mergers, acquisitions, and restructuring, the left-hand layout is recommended. Considering the market peripheral environment, we revised the original profit forecast. The company's net profit for 24/25/26 is 5.3 billion/6.3 billion/6.8 billion, or -25%/+20%/+8% compared to the same period last year. The company's target price is 24 yuan, which is nearly 35 times PE in 2024, and the space is about 28%, maintaining a highly recommended rating.
Risk warning: Policies are not as strong as expected, market fluctuations have intensified, and the company's market share has not increased as much as expected.
