Beijing (300803) 国联证券·2024-08-31 13:03Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Insights - The company, Guide Compass, reported a total revenue of 545 million yuan for H1 2024, representing a year-on-year increase of 6.58%. However, the net profit attributable to shareholders was -49 million yuan, a significant decline of 366.48% year-on-year. The decline in trading activity has impacted the company's financial information service revenue, but recovery is expected with market improvement. The securities business is developing positively, with potential for synergy with the main business [2][6]. Summary by Sections Financial Performance - In H1 2024, the financial information service revenue was 423 million yuan, down 4.4% year-on-year, primarily due to a sluggish securities market. The total trading volume in the A-share market decreased compared to the same period last year. The company has increased brand promotion and customer acquisition efforts, resulting in a nearly 50% year-on-year growth in new paid users for its financial information services [6]. Securities Business - The securities business, operated through Maigao Securities, achieved revenue of 164 million yuan in H1 2024, a year-on-year increase of 119%. The breakdown of revenue includes brokerage income of 82.22 million yuan, net interest income of 27.49 million yuan, and net investment income of 55.02 million yuan, with respective year-on-year growth rates of 138%, 108%, and 64%. By the end of H1 2024, Maigao Securities had 3.622 billion yuan in client securities trading, an increase of 78.31% from the end of 2023 [6]. Cost and Expense Management - The company has increased its investment in the securities business, leading to a rise in expense ratios. In H1 2024, the sales, management, and R&D expense ratios were 57.5%, 34.4%, and 13.9%, respectively, reflecting increases of 7.6, 6.7, and 1.7 percentage points year-on-year. The rise in R&D expenses is attributed to ongoing IT development efforts at Maigao Securities [6]. Revenue and Profit Forecast - The revenue forecast for the company is adjusted downward due to anticipated slow recovery in trading activity. Projected revenues for 2024-2026 are 1.005 billion yuan, 1.095 billion yuan, and 1.242 billion yuan, with year-on-year growth rates of 2%, 9%, and 13%, respectively. The net profit attributable to shareholders is expected to be 158 million yuan, 175 million yuan, and 207 million yuan for the same period, with growth rates of 117%, 11%, and 18%, respectively. The earnings per share (EPS) are projected to be 0.39 yuan, 0.43 yuan, and 0.51 yuan [6][7].