Nanhua Futures(603093) 广发证券·2024-08-20 01:40Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 13.6 CNY per share based on a PE valuation of 18x for the estimated EPS of 0.76 CNY in 2024 [4][2]. Core Insights - The company reported a significant increase in net profit, with a 36.7% year-on-year growth in net profit attributable to shareholders, reaching 230 million CNY in H1 2024, despite a 16.14% decrease in operating revenue to 2.638 billion CNY [1][2]. - The company's equity scale has expanded, with domestic equity reaching 25.77 billion CNY as of H1 2024, up from 21.25 billion CNY at the end of 2023, contributing to a total margin of 34.59 billion CNY, a 20% increase year-on-year [1]. - The report highlights the acceleration of futures product updates and growth in financial futures trading volume, indicating a positive industry outlook [1]. Summary by Sections Financial Performance - For H1 2024, the company reported operating revenue of 2.638 billion CNY, a decrease of 16.14% year-on-year, while net profit attributable to shareholders was 230 million CNY, an increase of 36.7% [1]. - The adjusted net profit also saw a 41.9% increase, indicating strong underlying performance despite revenue challenges [1]. Business Expansion - The company has successfully expanded its equity scale, with domestic equity growing to 25.77 billion CNY and total margin reaching 34.59 billion CNY, reflecting a 20% year-on-year increase [1]. - The report notes the stability of overseas financial services, with a presence in major international cities, enhancing the company's global trading capabilities [1]. Market Trends - The report discusses the rapid update of futures products and an increase in trading volume for financial futures, suggesting a favorable market environment for the company's operations [1]. - The company is actively exploring innovative products in the OTC derivatives market, which could provide new risk management tools for the market [1].