年内公司多项资本措施强化公司经营和市值管理。24 年8 月底公司向不特定对象发行可转债拟募集资金总额不超过12 亿元，用于提升期货经纪业务服务能力等。24 年7 月公司审议通过《关于回购股份方案的议案》，同意以不低于5,000 万元，不超过10,000 万元的自有资金通过集中竞价交易方式回购公司股份，拟用于后续实施员工持股计划。Core views:
Nanhua Futures released its 2024 three-quarter report. (1) Q3 revenue was 1.82 billion yuan, yoy +7.08%, net profit to mother 0.13 billion yuan, yoy -1.48%. 24Q1-3's revenue was 4.46 billion yuan, yoy -7.99%, net profit to mother 0.356 billion yuan, yoy +20.07%. (2) The decline in revenue is due to a significant year-on-year contraction in the company's other business revenue. However, the increase in net profit is mainly due to the increase in interest income from futures margin interest after deducting risk management business.
The size of equity continues to grow. According to the company's financial report, the total amount of security deposit payable by the company at the end of June '24 was 34.59 billion yuan, yoy +20%. By the end of September '24, the total amount of security deposit payable was $38.99 billion, an increase of 34.8% over the end of '23. As of the end of September 30, the company's total assets were 45.64 billion yuan, an increase of 25.64% over the end of 23.
During the year, the company's various capital measures strengthened the company's operations and market value management. At the end of August '24, the company issued convertible bonds to unspecified targets to raise no more than 1.2 billion yuan in total capital to enhance futures brokerage business service capabilities, etc. In July '24, the company reviewed and passed the “Bill on the Share Repurchase Plan” and agreed to use its own capital of not less than 50 million yuan and no more than 100 million yuan to buy back the company's shares through centralized bidding transactions, which are intended to be used for the subsequent implementation of the employee stock ownership plan.
Collaborative development of multiple businesses. (1) Overseas financial services have remained stable. As of 24H1, Henghua International has completed the layout of four major international cities: Hong Kong, China, Chicago, Singapore, and London, England, covering the three major time zones of Asia, Europe, and North America, covering global futures trading hours. It has licenses for futures, securities, asset management, etc., and can engage in brokerage business, settlement business, asset management business, etc. (2) The large asset management business developed in an orderly manner. As of the end of June '24, the management scale of Nanhua Fund was 21.42 billion yuan, an increase of 1.5% over the end of '23. (3) The OTC derivatives business explores innovation. The company explores products such as South China commodity index swaps and index options to provide the market with new tools to manage risk.
Profit forecasting and investment advice. Considering that the Federal Reserve cuts interest rates in the second half of the year, revenue for 24 is expected to be 5.84 billion yuan, and net profit to mother is 0.46 billion yuan, an increase of 15% over the previous year. Since the beginning of '23, the average PE value of the company is 20x. Based on EPS of 0.76 yuan in '24, the PE valuation is 20x, corresponding to a reasonable value of 15.17 yuan/share, giving the company an “increase in wealth” rating.
Risk warning. The economic downturn lowered handling fees, the impact of domestic and foreign policies, interest falling short of expectations, etc.
