EASTMONEY(SZ:300059)2024-03-14 16:00Investment Rating - The report maintains a "Buy" rating for the company, Oriental Fortune [6]. Core Views - The company reported a total revenue of 11.08 billion RMB in 2023, a year-on-year decrease of 11.3%, and a net profit of 8.19 billion RMB, down 3.7% year-on-year [6]. - The company has implemented a restricted stock incentive plan, granting 40 million shares, which reflects management's confidence in long-term growth [6]. - The report highlights an increase in market share for brokerage and margin financing businesses, indicating a positive trend in operational performance despite overall revenue decline [6]. Summary by Sections Market Data - Closing price as of March 14, 2024, was 13.63 RMB, with a one-year high of 23.84 RMB and a low of 11.83 RMB [3]. - The circulating A-share market value is 183.061 billion RMB [3]. Financial Performance - In 2023, the company achieved a return on equity (ROE) of 11.9%, down 2.46 percentage points year-on-year [6]. - Revenue breakdown for 2023: commission income (49.7 billion RMB, -8% YoY), net interest income (22.3 billion RMB, -9% YoY), and other business income (38.9 billion RMB, -16% YoY) [6]. - The company increased R&D investment by 15% year-on-year [6]. Business Segments - The brokerage business saw a market share increase to 4.01%, with a trading volume of 19.27 trillion RMB [6]. - Margin financing business grew by 26% year-to-date, with a market share of 2.93% [6]. - The report notes a decline in the market share of the company's mutual fund distribution business, attributed to a decrease in new equity fund issuance [6]. Future Projections - The company expects net profits for 2024-2026 to be 8.5 billion, 8.7 billion, and 9.6 billion RMB, respectively, with year-on-year growth rates of 3%, 3%, and 6% [6]. - The report anticipates a recovery in market trading activity due to upcoming regulatory reforms, leading to an upward revision of profit forecasts for 2024 [6].