Guotai Junan Securities (601211) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached RMB 11.93 billion, up 37.21% year-over-year; YTD revenue was RMB 29.0 billion, up 7.29% year-over-year.

• Net profit attributable to shareholders for Q3 was RMB 4.51 billion, up 56.17% year-over-year; YTD net profit was RMB 9.52 billion, up 10.38% year-over-year.

• Basic EPS for Q3 was RMB 0.49, up 58.06% year-over-year; YTD basic EPS was RMB 1.01, up 9.78% year-over-year.

• The company announced a planned merger with Haitong Securities, with a share swap ratio of 1:0.62.

Financial highlights

• Net profit excluding non-recurring items for Q3 was RMB 4.48 billion, up 77.96% year-over-year; YTD was RMB 9.03 billion, up 13.98%.

• Weighted average ROE for Q3 was 2.86%, up 0.99 percentage points year-over-year; YTD was 5.97%, up 0.35 percentage points.

• Total assets at Q3-end were RMB 931.95 billion, up 0.71% from year-end 2023.

• Net cash flow from operating activities for the first nine months was RMB 35.82 billion, a significant turnaround from negative RMB 23.65 billion in the prior year.

Outlook and guidance

• The company expects continued growth, supported by increased market activity and the upcoming merger with Haitong Securities.