Soochow Securities (601555) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was ¥5.05 billion, down 5.38% year-over-year; net profit attributable to shareholders was ¥1.17 billion, down 16.12% year-over-year.

• All major business lines except asset management saw revenue declines; investment banking revenue dropped 45.98% year-over-year.

• Total assets at June 30, 2024, were ¥156.59 billion, with a slight decrease from year-end 2023.

• The company will distribute a cash dividend of ¥0.75 per 10 shares, totaling ¥372.65 million, representing 31.98% of net profit for the period.

Financial highlights

• Operating income: ¥5.05 billion, down 5.38% year-over-year.

• Net profit attributable to shareholders: ¥1.17 billion, down 16.12% year-over-year.

• Basic and diluted EPS: ¥0.23, down 17.86% year-over-year.

• ROE: 2.88%, down 0.68 percentage points year-over-year.

• Total assets: ¥156.59 billion; total liabilities: ¥115.52 billion; equity attributable to shareholders: ¥40.50 billion.

• Net cash flow from operating activities: ¥12.16 billion; net cash outflow from investing activities: ¥11.12 billion.

Outlook and guidance

• The company will continue to focus on core business transformation, digitalization, and risk management in the second half of 2024.

• Wealth management and asset management will emphasize product innovation and customer experience; investment banking will focus on quality and compliance.