Overview of the 2024 Mid-Year Report: Guojin Securities achieved operating income of 2.676 billion yuan, or -19.55%; realized net profit to mother of 0.455 billion yuan, or -47.98%; basic earnings per share of 0.123 yuan, or -47.66% year on year; and weighted average return on net assets of 1.39%, -1.38 percentage points year over year. In the first half of 2024, the amount of shares repurchased by the company in cash as a cash dividend accounted for 21.98% of net profit attributable to the owner of the parent company, and no separate cash dividends will be paid.

Comment: 1.2024H The share of the company's net income from brokerage, asset management, and interest increased, while the share of investment banking, investment income (including changes in fair value), and other revenue declined. 2. Agent stock base transaction volume, market share, and net revenue from proxy purchases all increased, and net revenue from consolidated brokerage business fees was -5.05% compared to the same period last year. 3. The scale of equity financing achieved significant growth against the market, the scale of debt financing remained stable, and the net income from handling fees from the consolidated investment banking business was -15.85% compared to the same period last year. 4. The size of brokerage asset management and public funds increased steadily, with net revenue from handling fees for consolidated asset management operations -10.64% year-on-year. 5. Fixed income self-employment obtained good investment returns. Equity self-operation is expected to be under pressure. Consolidated investment income (including changes in fair value) was -44.82% year-on-year. 6. The balance of the two loans declined slightly with the market, and the market share increased steadily, reducing the size of stock pledges. Net income from consolidated interest was -8.06% year-on-year.

Investment advice: During the reporting period, the number of clients in the wealth management business, which is one of the company's basic core businesses, maintained a relatively rapid growth, and the market share of proxy equity transactions achieved reverse market growth, and the market share of the balance of two loans rose steadily; the scale of equity financing achieved significant growth against the market, and the scale of debt financing remained stable. Despite a slight decline in the investment banking business, the overall strength still led small and medium-sized brokerage firms and ranked at the top of the industry, showing strong resilience; it is expected that equity self-management should be under pressure, and at the same time, there should be pressure on joint ventures and joint ventures. The loss in investment income dragged down the company's current period performance.

The company's 2024 and 2025 EPS is expected to be 0.35 yuan and 0.38 yuan, respectively, and the BVPS is 8.95 yuan and 9.34 yuan respectively. Based on the closing price of 9.71 yuan on October 9, the corresponding P/B will be 1.08 times and 1.04 times, respectively, maintaining an investment rating of “increase in holdings”.

Risk warning: 1. The degree of improvement in the company's performance due to fluctuations in the fixed income market falls short of expectations; 2. Risk of short-term stock price fluctuations; 3. The policy effects of capital market reform fall short of expectations