China Merchants Securities (600999) Q3 2024 earnings summary

Executive summary

• Net profit attributable to shareholders for Q3 2024 rose 43.43% year-over-year to ¥2.40 billion, with year-to-date net profit up 11.68% to ¥7.15 billion.

• Operating cash flow for the first nine months surged 506% year-over-year to ¥76.40 billion, driven by increased net cash inflows from trading activities.

• Basic and diluted EPS for Q3 were ¥0.26, up 44.44% year-over-year; year-to-date EPS reached ¥0.77, up 11.59%.

Financial highlights

• Q3 2024 revenue was ¥4.68 billion, up 14.89% year-over-year; year-to-date revenue was ¥14.28 billion, down 3.98%.

• Net profit excluding non-recurring items for Q3 was ¥2.40 billion, up 43.40% year-over-year; year-to-date, it was ¥7.15 billion, up 12.14%.

• Cash flow from operating activities for the first nine months was ¥76.40 billion, a 506% increase year-over-year.

• Total assets at Q3-end were ¥666.76 billion, down 4.18% from year-end 2023.

• Shareholders’ equity rose 3.29% to ¥125.97 billion since year-end 2023.

Outlook and guidance

• Management highlighted increased self-operated business income as a key driver for profit growth.

• Cash flow improvements attributed to higher net cash inflows from trading and agency activities.