Overview of the 2024 Mid-Year Report: CITIC Securities achieved operating income of 30.183 billion yuan, -4.18% year over year; realized net profit to mother of 10.57 billion yuan, -6.51% year over year; basic earnings per share of 0.69 yuan, -8.00% year over year; and weighted average return on net assets of 3.96%, -0.31 percentage points year over year. It is planned to pay $2.40 (tax included) for the semi-annual period of 2024.

Comment: 1.2024H The share of the company's investment income (including changes in fair value) and other revenue increased, and the share of net income from brokerage, investment banking, asset management, and interest all declined to varying degrees. 2. Wealth management and institutional brokerage remained leading the industry. Net income from consolidated brokerage services was -7.75% compared to the same period of -7.75%, and the decline was superior to the industry. 3. The equity financing business is under heavy pressure, and the debt financing business is rising steadily. Net income from handling fees from the consolidated investment banking business was -54.63% year-on-year. 4. Brokers' asset management fee revenue declined slightly, and the scale of public fund management continued to grow. Net income from handling fees from consolidated asset management operations was -1.09% year-on-year. 5. Proprietary business increased its non-directional layout, and consolidated investment income (including fair value changes) remained stable at +0.38% year-on-year. 6. Interest income from the two loans decreased, and interest expenses on sales and repurchase increased. Net income from consolidated caliber interest was -47.43% year-on-year. 7. Overseas revenue was +25.02% year-on-year, achieving continuous growth.

Investment advice: Although corporate brokerage, brokerage asset management, and public equity business declined slightly due to the market environment, the industry position was stable; investment banking business was affected by a high year-on-year base, but the ranking of core equity and debt financing indicators still led the industry; self-operated business increased various non-directional investment layouts, and investment income (including changes in fair value) remained stable year on year; overseas business operated steadily, and revenue continued to grow. As an industry leader, the company's performance fluctuations in recent years have remained subdued, and total net profit has remained at a high level. The company's 2024 and 2025 EPS is expected to be 1.19 yuan and 1.29 yuan, respectively, and the BVPS is 18.00 yuan and 19.00 yuan respectively. Based on the closing price of 19.34 yuan on September 19, the corresponding P/B will be 1.07 times and 1.02 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 effect of capital market reform falls short of expectations