China Galaxy Securities (6881) Q3 2024 earnings summary

Executive summary

• Operating income for Q3 2024 rose 23.92% year-over-year to RMB 9.99 billion; YTD income up 6.29% to RMB 27.09 billion.

• Net profit attributable to shareholders surged 54.79% year-over-year in Q3 to RMB 2.58 billion; YTD net profit up 5.46% to RMB 6.96 billion.

• Basic EPS for Q3 was RMB 0.20, up 33.33% year-over-year; YTD basic EPS at RMB 0.55, down 8.33% from last year.

• Strong investment business performance drove profit growth, offsetting declines in interest and commission income.

Financial highlights

• Total assets increased 12.77% from year-end 2023 to RMB 747.92 billion; owners' equity up 4.75% to RMB 136.67 billion.

• Net interest income for the first nine months fell 20.91% year-over-year; net handling fees and commission income down 9.58%.

• Investment gains and gains from changes in fair value rose 49.89% year-over-year to RMB 8.74 billion.

• Net cash flow from operating activities was RMB 58.06 billion, a significant turnaround from a negative RMB 28.17 billion last year.

• Weighted average return on net assets for Q3 was 2.17%, up 0.57 percentage points year-over-year.

Outlook and guidance

• The suspension of new private asset management product filings at subsidiary Galaxy Jinhui is not expected to significantly impact consolidated revenue or profit.

• The company is focused on rectifying regulatory issues and strengthening internal controls to enhance long-term investor returns.