Haitong Securities (600837) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 8.86 billion, down 47.76% year-over-year; net profit attributable to shareholders was RMB 953 million, down 75.11%.

• Total assets at period end were RMB 721.41 billion, a 4.40% decrease from the previous year-end.

• The company maintained a strong capital base, with net capital of RMB 85.47 billion and a risk coverage ratio of 204.13%.

• Cash dividend of RMB 0.3 per 10 shares proposed, totaling RMB 389.6 million, representing 40.88% of H1 net profit.

Financial highlights

• Operating income fell 47.76% year-over-year, mainly due to declines in investment banking, brokerage, and trading income.

• Net profit attributable to shareholders dropped 75.11% year-over-year; basic EPS was RMB 0.07, down 75.86%.

• Net cash flow from operating activities was RMB 19.28 billion, a significant improvement from the negative RMB 10.74 billion in H1 2023.

• Gross margin for the period was 21.28%, down 9.17 percentage points year-over-year.

Outlook and guidance

• The company will focus on strengthening core businesses, enhancing product and service systems, and supporting the development of the real economy and new quality productive forces.

• Plans to accelerate transformation in wealth management, investment banking, asset management, and digital finance, with an emphasis on compliance and risk control.