CITIC Securities (600030) performance review for the first half of 2019: self-operated business is the main driver of performance
Performance growth was in line with expectations.
In the first half of 2019, the company achieved operating income of 217.
9.1 billion, +9 in ten years.
00%; net profit attributable to mother is 64.
4.6 billion, +15 per year.
82%, net profit of 64 non-return to mother.
1 billion, ten years +15.
65%, the quality of net profit is good; total assets at the end of the period were 7,238.
6.6 billion yuan, up 10 from the end of 2018
83%, attributable to the shareholders’ equity is 1560.
1.0 billion, an increase of 1 over the end of 2018.
87%, lever ratio is 3.
90 times, an increase of 0 from the end of 2018.
The overall revenue structure is balanced.
Brokerage, investment bank, asset management, credit, self-employed and other businesses’ net income accounted for 17 of the revenue respectively.
93% and 18.
55%, of which net income from self-operated business accounted for the remainder of the increase compared to the end of 2018, +11.
31pct, the proportion of other businesses’ net income is stable, and the company’s business structure is generally balanced.
During the reporting period, net income from proprietary operations had a positive contribution to net profit, but net income from changes in fair value had a negative contribution to net profit conversion.
Equity and bond underwriting both grew.
In the first half of 2019, the company’s net income from securities underwriting business was 18.
4.0 billion, +3 per year.
09%, mainly driven by the double growth of the scale of underwriting of stock bonds.
Reporting period: The company completed the underwriting amount of A shares of RMB 1228.
6.9 billion yuan (including private placement of assets), with a market share of 20.
13%, ranking first in the market, and the amount of equity underwriting is +34 per year.
70%, of which the underwriting amount of the IPO is RMB 160.
2.9 billion, +101 per year.
62%, the refinancing lead underwriting amount was RMB 1068.
4 billion, +28南京夜生活网.
31%; the company’s main underwriting amount is RMB 4,528.
6.9 billion yuan, market share4.
92%, the bond underwriting amount and the number of underwriting rank the first in the industry, the main underwriting amount +72 per second.56%; the company’s A-share major asset restructuring transaction amounted to approximately RMB 37.5 billion, ranking third in the industry.
As of August 22, as the main sponsor, the company sponsored 11 science and technology board companies, ranking third in the industry, providing protection for investment banking business income in the second half of the year.
Brokerage business net income and market share dropped slightly.
In the first half of 2019, the company’s net income from brokerage fees was 37.
9.9 billion yuan, at least -7.
61%, mainly dragged down by the subsidiary’s brokerage business. During the reporting period, the subsidiary’s brokerage business net income was -7 per year.
During the reporting period, the company’s agency stock fund transactions totaled RMB 8.
2 trillion yuan, with a market share of 5.
55%, a total of -0 compared to the same period last year.
45pct, mainly because the company’s institutional customers account for a relatively high proportion, institutional customers turnover rate is lower than individual customers, resulting in market share decline.
Proprietary business income is the main driver of net profit growth.
In the first half of 2019, the company’s net operating income (net investment income-investment income to associates and joint ventures + net net income from changes in fair value) was 71.
7.5 billion, +45 a year.
01%, mainly benefiting from the market recovery, increasing investment income from disposal of financial instruments (+490 each time).
Net income from proprietary operations was the main driver of the increase in net profit attributable to mothers.
At the end of the reporting period, the company’s financial assets were 3,197.
9.8 billion, an increase of 6 from the end of 2018.
85%, of which 2,663 are financial assets traded.
3.4 billion, other debt investment was 368.
7.5 billion, investment in other equity instruments was 165.
9 billion; the nominal amount of derivative financial instruments is 10,752.
6.9 billion yuan, +7 from the end of 2018.
Asset management scale shrinks.
In the first half of 2019, the company’s net income from the client’s asset management business was 26.
6.6 billion a year-8.
42%, mainly affected by the shrinkage of asset management scale.
At the end of the reporting period, the company’s asset management scale was RMB 12,969.
1.3 billion a year -15.
44%, actively managing the scale of RMB 5,531.
1.1 billion per year -3.
44%, of which, the scale of collective asset management plans, the size of single asset management plans and the scale of special asset management plans are divided by -22.
At the end of the reporting period, the company ‘s private equity asset management business (excluding social security funds, basic pensions, enterprise annuities, occupational annuities, large collective products, pension collective products, asset securitization products) market share under the new asset management regulations.
98%, ranking first in the industry.
The scale of stock pledges and funds raised doubled.In the first half of 2019, the company’s net interest income was 13.
7.8 billion, +47 per year.
85%, mainly benefited from the increase in the scale of stock pledges and funds raised.
Affected by the market recovery, the decline in credit risk and the active influence of investors, at the end of the reporting period, the company’s own capital stock pledge size was 436.
8.3 billion, with a surplus of 644.
8.8 billion yuan, respectively +13 from the end of 2018.
75%; provision for impairment of financial assets purchased under resale during the reporting period3.
8.5 billion per year -12.
It is expected that the company’s EPS for 2019 and 2020 will be 1.
10 yuan, 1.
33 yuan, corresponding to the closing price on August 23, 2019, the PE in 2019 and 2020 are 20.
58 times, 17.
02 times, PB is 1.
79 times, giving the company a cautious recommendation level.
The economy exceeded expectations, the stock market fell sharply, and the Sino-US trade friction worsened.