HHTG(600095) 太平洋·2024-09-04 01:01Investment Rating - The report upgrades the investment rating of Xiangcai Co., Ltd. to "Buy" [1][5][6] Core Views - The company reported a decline in revenue and net profit for H1 2024, with revenue at CNY 1.093 billion, down 15.19% year-on-year, and net profit at CNY 73 million, down 46.30% year-on-year [3] - The decline in net profit is primarily attributed to losses from investments in Dazhihui, which resulted in a significant decrease in investment income [3] - The self-operated business showed strong growth, with revenue increasing by 31.88% year-on-year to CNY 243 million, supported by the growth in FICC business [3] - The asset management scale of Xiangcai Securities increased significantly, with a 53.85% growth in asset management scale to CNY 7.774 billion [3] - The introduction of state-owned shareholders is expected to enhance the company's governance structure and business resource acquisition [3] Summary by Sections Financial Performance - H1 2024 revenue: CNY 1.093 billion, down 15.19% year-on-year [3] - H1 2024 net profit: CNY 73 million, down 46.30% year-on-year [3] - Xiangcai Securities total revenue: CNY 725 million, down 9.23% year-on-year [3] - Investment income decreased by CNY 60.96 million due to losses from Dazhihui [3] Business Segments - Self-operated business revenue: CNY 243 million, up 31.88% year-on-year [3] - Brokerage business revenue: CNY 306 million, down 16.08% year-on-year [3] - Investment banking fees: CNY 30 million, down 50% year-on-year [3] - Asset management scale: Increased from CNY 5.053 billion to CNY 7.774 billion, a growth of 53.85% [3] Future Outlook - Projected revenue growth for 2024-2026: +13.35%, +11.56%, +10.63% [3] - Projected net profit for 2024-2026: CNY 150 million, CNY 220 million, CNY 283 million [3] - Projected EPS for 2024-2026: CNY 0.06, CNY 0.08, CNY 0.10 [3]