Huatai Securities (601688) 2019 Interim Report Review: Self-employed to increase performance, wealth management is increasingly sophisticated
Event Huatai Securities released its 2019 Interim Report.
In the first half of 2019, the company achieved operating income of 111.
070000 yuan, +35 for ten years.
18%; net profit attributable to mother is 40.
57 trillion, +28 a year.
43%; ROE 3.
82%, ten years +0.
As of the end of the first half of 2019, the company returned to its shareholders’ equity of 1168.
24 ppm, +12 from the beginning of the year.
Brief comment on GDR’s issuance of enriched capital and investment income to support performance.
(1) In June 2019, the company became the first Chinese company to issue a GDR and landed on the London Stock Exchange, raising total funds.
9.2 billion US dollars, set a number of financing records in the United Kingdom and even European capital markets, driving the company’s return to its parent shareholders’ equity increased earlier.
(2) Relying on the stock market recovery in the first half of the year, the company realized investment income (including income from changes in fair value) 47.
72 ppm, +86 a year.
29%, exceeding the total at the beginning of 2018; according to the income statement, the proportion of net income from brokerage / investment bank / asset management / investment / interest to operating income was 20% / 5% / 13% / 42% / 11%, respectively.
Wealth Management: No. 1 in the market share industry, online and offline synergy.
(1) Total trading volume of the company’s stock funds in the first half of the year.
Ten percent of 09, +37.
95%, with a market share of 7 from the same period last year.
10% rose to 7.
51%, ranking first in the industry; at the end of the first half of the year, the total assets of the company’s customer accounts reached 3.
01 trillion yuan, +22 from the beginning of the year.
(2) The mobile platform “Zhangle Wealth Link” continued to improve service scenarios and operating strategies, and successively launched a variety of smart applications such as asking the secretary, quick stock selection, and intelligent voice assistant, with an average monthly activity of 748.
990,000, ten years +17.
77%, ranking first among brokerage apps.
(3) Continuously improving the whole process management model of financial products offline. The proportion of investment consultants among the employees of the parent company increased to 31.
40%, ranking first in the industry; sales scale of financial products (excluding Tianfafa) was 1,677.
44 trillion, ten years +10.
(4) The capital intermediary business has received and released, and the balance of the parent company’s margin financing and securities lending business is RMB548.
390,000 yuan, +26 from the beginning of the year.
02%, maintaining a guarantee ratio of 316.
98%; stock pledged repurchase business has a repurchase margin of 459.
6.6 billion, compared with -14 at the beginning of the year.73%, with an average performance guarantee ratio of 267.
Institutional services: Science and technology board and mergers and acquisitions have advantages, and the scale of solid income investment has increased by 90%.
(1) The company’s equity underwriting amount in the first half of the year was 474.
24 ppm, -42 per year.
83%, mainly due to the release of the pace of review by the CSRC; the company closely followed the changes in the science and technology board, and four sponsored companies listed on the science and technology board for the first time, ranking second; the number of M & A and restructuring transactions was 6, the industry ranked first, and the transaction amount273.
68 ppm, ten years -61.
15%, ranking fourth in the industry.
(2) Relying on the issuance of fixed increase + GDR, the company expanded the scale of investment expansion and 朴妮唛脱胸罩新闻 terminated the company’s proprietary equity securities and their derivatives at the end of the first half of the year.
26 ppm, +42 from the beginning of the year.
39%, self-operated non-equity securities and their derivatives 1595.
680,000 yuan, +92 from the beginning of the year.
The equity business model is transforming into trading, actively expanding alternative strategic means, and exploring innovative profit models such as macro hedging transaction business; the solid income business promotes the upgrade of FICC service system that is oriented towards customer demand and has transaction pricing as its core competence.
Investment management: Continuously improve the ability of active management and product creation.
As of the end of the first half of the year, the total asset management scale of the company was 9,267.
35 trillion, +18 from the beginning of the year.
From the perspective of classification, the collective asset management product line is further enriched, with a scale of 1,427.
02 trillion, +26 from the beginning of the year.
51%; single asset management product actively promotes business transformation, with a scale of 6,708.
26 ppm, +15 from the beginning of the year.
13%; special fund management products continue to maintain the development advantage, and the number and scale of corporate asset securitization projects are among the highest in the industry, with a scale of 1053.
520,000 yuan, +29 from the beginning of the year.
In the first quarter of 2019, the company’s private equity actively managed assets on an average monthly scale of 2,334.
52 ppm, the industry ranked fourth, accounting for 27 of the total scale.
Continue to advance the pilot reform of mixed ownership.
In 2018, the company’s overall pilot plan for the reform of mixed ownership was approved, and it completed a fixed increase in shares while dating strategic investors such as Alibaba and Suning.com.
In 2019, the company will further appoint a professional manager system for senior officials and optimize the salary incentive system, establish an executive committee, without the positions of president and vice president; plan to appoint several executive committee members and other senior managers for global selection.
Investment suggestion: “Buy” rating.
The performance of the securities brokerage sector in 2019 will continue to benefit from the easing of liquidity and the catalysis of capital market reforms. The long-term market is worth looking forward to; under the regulatory thinking of “supporting the good and limiting the bad”, the capital strength has increased (the 2019 mid-term net asset ranks among the top five in the industry), Huatai Securities with perfect wind control (3 consecutive years of AA rating from the China Securities Regulatory Commission) and enhanced innovation capabilities (Science and Technology Board, wealth management, and overseas business continue to lead the way) will be one of the beneficiaries.
We forecast Huatai Securities’ BVPS to be 13 in 2019-2020.
21 yuan and 13.
64 yuan, corresponding to the current total PB is 1.
55X and 1.
50X to Huatai Securities (601688.
SH) “Buy” rating.
Risk warnings: unstable equity structure; marginal easing in monetary and credit policies failing to meet expectations; progress in capital market reforms failing to meet expectations.