Zheshang Securities(601878) 华创证券·2024-11-04 00:41Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company's performance exceeded expectations, with significant improvements in proprietary business driving a notable recovery in overall performance [1]. - The report highlights a year-on-year decline in total operating revenue of 9.4%, amounting to 4 billion RMB, while net profit attributable to shareholders increased by 4.9% year-on-year to 1.26 billion RMB [1]. - The proprietary income showed a significant increase, benefiting from the recovery in the equity market, with net income from capital business totaling 1.67 billion RMB [1]. - The report projects adjusted earnings per share (EPS) for 2024, 2025, and 2026 to be 0.48, 0.54, and 0.61 RMB respectively, with a target price set at 14.6 RMB based on a price-to-book (PB) ratio of 1.9 for 2025 [1][2]. Financial Summary - Total operating revenue for 2024 is projected at 17.638 billion RMB, with a year-on-year growth rate of 5% [3]. - Net profit for 2024 is estimated at 1.754 billion RMB, reflecting an 8% year-on-year increase [3]. - The report indicates a projected price-to-earnings (P/E) ratio of 28.24 for 2024, decreasing to 20.93 by 2026 [3]. - The company's return on equity (ROE) is expected to be 6.77%, 7.16%, and 7.72% for 2024, 2025, and 2026 respectively [1][3].