Huatai Securities (601688) 2019 Interim Report Comment: Brokerage business with high investment income continues to lead

I. Event Overview On August 29, Huatai Securities released its 2019 Interim Report, which achieved revenue of 111 in the first half of the year.

1 ‰, +35 per year.

2%, net profit attributable to mother 40.

600 million, +28 a year.

4%, the basic EPS is 0.

49 yuan / share, expected average ROE is 3.

8%.

Second, the analysis and judgment of net profit maintained steady growth. GDR issued a thickening company’s capital. Huatai Securities’ revenue and net profit scale ranked 5th and 4th in the industry in the first half of the year.In the last ten years, + 33% is slightly better than market expectations.

GDR successfully raised 113 million capital, becoming the first “A + H + G” brokerage.

In the first half of the year, the company’s total assets were 49.3 million yuan, an increase of 34% over the end of the previous year, and its net assets were 11.82 million yuan, an increase of 13%. The level of asset leverage increased, and its capital strength further increased.

The comprehensive strength is outstanding, the business structure is balanced, and the proportion of self-employed + brokerage revenue accounts for more than half of the business structure.And 20% contribute more than half of the income.

The asset management business revenue has a potential of + 19% per year, which is better than the industry level.

Credit business is -3% per annum and investment banking business is -25% per annum.

In the first half of the year, the scale of investment in equity and derivatives was 255 trillion, accounting for 37% of net capital, and the scale of fixed income investment was 1596 trillion, accounting for 230% of net capital.A supplement.

The market share of the brokerage business continued 西安耍耍网 to remain the first in the industry, and the internationalization strategy steadily pushed the company’s market share of the brokerage business to remain the first in the industry. The amount of stock-based transactions in the first half of the year reached 11 trillion.APP ranked 1st, and brokerage income ranked 5th in the industry.

The underwriting amount of the investment bank’s stock debt principal over 2000 trillion ranked the fourth in the industry, serving nine companies in the science and technology innovation board, of which four have been issued, and the first in 6 single-industry mergers and acquisitions and restructuring, and the fourth largest in the scale of transactions.

The industry with an average monthly asset management scale of US $ 8,491 million maintained the second uptrend. The single asset management inventory was optimized, aggregated, and the scale of special asset management increased.

Assetmark’s market share has remained at 10%, and its scaled-up strength has increased since the IPO was completed, driving the size of assets under management to increase by 25% to $ 56.1 billion.

Third, investment recommendations Due to the low base effect in the second half of last year, the company’s performance growth rate reached more than 30% is deterministic.

The current sector PB is 1.

6X, average 1 from 2016-2017.

8X has room for repair.

The company currently has a PB of 1.

5 times lower than the overall level, PB is expected to be 1 in 2019-2020.

45X and 1.

37X, maintain the recommended level.

Fourth, risk warning: self-employment income is less than expected.