东方财富：基金销售承压，证券业务平稳运营

Investment Rating - The report maintains an "Outperform" rating for the company with a target price of RMB 14.13 per share [2][11][12]. Core Insights - Despite significant market volatility and low new fund issuance in 2024, the company's fund distribution income has declined, while its securities business remains stable with an increase in margin financing market share and substantial growth in investment profits [2][11]. - The company has introduced a new equity incentive plan, reflecting confidence in its future development [2][11]. - The report projects a net profit of RMB 7.779 billion for 2024, representing a year-on-year decrease of 5.1% [3][11]. Financial Performance Summary - For the first half of 2024, total revenue was RMB 4.94 billion, down 14.0% year-on-year, with a net profit attributable to shareholders of RMB 4.06 billion, down 4.0% year-on-year [2][11]. - The fund distribution business saw a revenue decline of 29.7% year-on-year, with total fund sales volume at RMB 851.4 billion, an increase of 4.4% year-on-year [2][11]. - The securities business reported a stable brokerage market share, with total trading volume of RMB 9.21 trillion, down 6.4% year-on-year [2][11]. Business Segment Analysis - The fund distribution segment experienced a decline in income, with new fund issuance at 660.7 billion units, up 26.1% year-on-year, but equity fund issuance down 33.9% [2][11]. - The securities segment's commission income was RMB 2.39 billion, down 4.0% year-on-year, while margin financing net interest income was RMB 1.03 billion, down 8.0% year-on-year [2][11]. - Proprietary business revenue grew significantly, with net investment income of RMB 1.63 billion, up 42.5% year-on-year, primarily driven by fixed income securities [2][11]. Valuation and Market Capitalization - The report estimates a reasonable market capitalization of RMB 223 billion based on a sum-of-the-parts valuation method, with a target price of RMB 14.13 per share [3][11].