China Galaxy Securities (6881) Q4 2024 earnings summary

Executive summary

• Achieved total revenue, gains, and other income of RMB46.76 billion in 2024, up 3.99% year-over-year; net profit attributable to owners reached RMB10.03 billion, up 27.31% year-over-year.

• Total assets grew 11.20% to RMB737.47 billion; equity attributable to owners rose 7.68% to RMB140.48 billion.

• Maintained a stable industry position, with over 17.3 million customers and RMB5.09 trillion in securities under custody.

• Board proposes a total cash dividend of RMB3.06 billion for 2024, representing 30.52% of net profit.

• Strategic focus on transforming into a modern investment bank, with continued digitalization and platform development.

Financial highlights

• Commission and handling fee income rose 11.38% to RMB8.44 billion; investment gains and losses surged 50.21% to RMB11.50 billion.

• Interest income declined 2.72% to RMB14.06 billion; net interest income fell 7.55% to RMB3.85 billion.

• Operating expenses (excluding handling fee, commission, and interest) decreased 2.19% to RMB24.95 billion.

• Basic and diluted EPS were RMB0.81, up 20.9% and 24.6% year-over-year, respectively.

• Weighted average return on net assets improved to 8.30% from 7.52% in 2023.

Outlook and guidance

• Expects continued economic recovery and capital market reforms in 2025, with leading securities firms poised to gain market share.

• Strategic plan (2023-2025) targets balanced growth across business lines, enhanced risk management, and digital transformation.

• Focus on expanding wealth management, investment banking, institutional, and international business, with emphasis on technology, green, and inclusive finance.