Zheshang Securities (601878) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB 3.90 billion, down 6.48% year-over-year; nine-month revenue was RMB 11.90 billion, down 5.75% year-over-year.

• Net profit attributable to shareholders in Q3 was RMB 481 million, up 14.71% year-over-year; nine-month net profit was RMB 1.31 billion, down 4.75% year-over-year.

• Basic EPS for Q3 was RMB 0.13, up 8.33% year-over-year; nine-month EPS was RMB 0.33, down 8.33% year-over-year.

• Operating profit and total profit both declined by over 8% compared to the same period last year.

• Despite a challenging environment, operational performance remained stable, reflecting strong management and resilience.

Financial highlights

• Operating cash flow for the nine months was RMB 7.99 billion, down 24.39% year-over-year.

• Total assets at Q3-end were RMB 145.46 billion, nearly flat from year-end 2023.

• Shareholders' equity increased 3.51% from year-end 2023 to RMB 27.97 billion; equity per share rose 3.85%.

• Investment income for the nine months dropped 67.11% year-over-year to RMB 324 million.

• Net cash flow from investing and financing activities for the nine months were negative RMB 1.94 billion and negative RMB 1.24 billion, respectively.

Outlook and guidance

• Risk control indicators remain compliant with regulatory requirements, with net capital and liquidity coverage ratios well above thresholds.

• Policy support and economic recovery measures have improved market confidence.

• The company remains focused on cost control and efficiency, aiming for stable performance.