Nanhua Futures(603093) 国泰君安·2024-08-18 10:12Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 15.23 CNY, compared to the current price of 9.01 CNY [2]. Core Insights - The company's performance exceeded expectations, driven by high net interest income due to elevated USD interest rates. The company is advancing risk management business innovations and solidifying its competitive advantages in overseas financial services, which is expected to meet the demands of the real economy [3]. Financial Summary - For the first half of 2024, the company reported revenue and net profit attributable to shareholders of 2.638 billion CNY and 230 million CNY, respectively, representing year-on-year changes of -16.14% and 36.73% [5]. - The weighted average ROE increased by 1.1 percentage points year-on-year to 6.03%, indicating a slight improvement in profitability [5]. - The company adjusted its earnings forecast for 2024-2026, projecting EPS of 0.72, 0.81, and 0.89 CNY, respectively, up from previous estimates of 0.70, 0.79, and 0.88 CNY [5]. Revenue Drivers - The company's net interest income for the first half of 2024 increased by 31.24% year-on-year to 351 million CNY, contributing 99.26% to the adjusted revenue growth. This increase is primarily attributed to higher interest rates on USD-denominated assets and improved rates from margin deposits in overseas futures businesses [5]. - The risk management business also showed improvement, with net income turning from a loss of 27 million CNY in 2023H1 to a profit of 3.5 million CNY in 2024H1, contributing 36.36% to the adjusted revenue growth [5]. Business Innovations - The company is focusing on risk management innovations tailored to the needs of real enterprises and rural revitalization efforts. It has launched 59 "insurance + futures" projects with a nominal principal of 1.097 billion CNY [5]. - The overseas financial services segment is enhancing its self-clearing system advantages and has obtained clearing qualifications from the ICE-US exchange, improving its capabilities in the global market [5].