CITIC Securities (600030) 2019 First Quarterly Report Review: Investment-Driven Performance Growth Leads Investment Banks
Event: The company released the first quarter report of 2019 and achieved 105 operating income.
2 ‰, an increase of 8 in ten years.
4%; net profit attributable to mother 42.
60,000 yuan, an increase of 58 in ten years.
3%, corresponding to EPS.
35 yuan / share; 1579 net assets attributable to mother.
2 trillion, corresponding to 13 BVPS.
03 yuan / share.
Investment Highlights Net profit attributable to parent +58 in the first quarter of 2019.
29%, in line with expectations: 1) The company achieved +8 revenue in the first quarter of 2019.
4%, net profit attributable to mother +10 for ten years.
29% to 42.
With a revenue growth rate of 600 million U.S. dollars, some of the shareholders ‘companies’ bulk commodity sales revenue decreased, which was in line with expectations.
2) The company’s self-operated business income is +106 per year.
3% to 49.
20,000 yuan, mainly due to the increase in investment income caused by the disposal of financial instruments.
9 times to 46 trillion, we expect the market to pick up in 2019, and the company’s investment yield will rise steadily.
3) The net income of investment banking business is +34 per year.
3% to 9.
9 trillion, it is expected that the bond underwriting amount will exceed + 226% to 2039 trillion, which will hedge the impact of changes in equity underwriting income (the IPO underwriting amount will decrease but the market share will increase to 20.
7%, only 9 in 2018.
In addition, the company’s science and technology innovation board has already inquired and replaced 9 projects (ranked first). Under the background of “financial 杭州夜网论坛 supply side reform”, CITIC, as a leading brokerage firm, can fully utilize capital market construction and direct financing development.
The traditional business is slightly distorted, but the leader still maintains market leadership.
1) Net income of brokerage business is -8 per year.
7% to 19.
500 million (+23 qoq.
3%), the market’s average daily stock-based trading quota / chain ratio + 19% / 70% to 62,170 billion US dollars, we think there are two reasons for the trigger, leading to a decline in commission rate, so this year the market’s increase in trading volume is mainly the stock retailActivation of contributions, the company’s customers have the characteristics of stable transaction activity, so increasing the turnover will not have a significant impact; 2) Net income from asset management business will decrease by -12.
76% to 13.
0 billion (-23.
3%), under the background of the new rules of asset management and de-channeling, the company continues to optimize the structure, and Huaxia Fund is expected to grow steadily.
3) The company’s financial assets under resale in the first quarter decreased by 15 compared with the end of 2018.
4% to 57 billion, the stock pledge business is expected to continue to reduce the scale of control risks, the market warmed in 2019, the impairment turned back to 0.
Integrate the expansion of Guangzhou Securities + implement employee shareholding, the leader will be Hengqiang.
1) The company’s strategic considerations based on industry integration and expansion of South China’s layout, taking into account market expectations, and forecasting the acquisition of Guangzhou Securities, confirmed the leading trend of the securities industry from the scale of industrial capital, and led CITIC to expand its South China business layoutSales Department, South China accounts for 27%).
2) The company’s leader releases the employee stock ownership plan budget, with a planning scope of about 1,000-1500 people. In the future, the company’s employees will be gradually motivated to form a virtuous cycle of performance and response, showing the leadership’s confidence in the company’s long-term development.
3) The introduction of the registration board for the science and technology innovation board will open a new era of the capital market. The brokers on the right have a clear understanding of the market, pricing power, and underwriting capabilities.The strong are strong. Earnings forecast and investment rating: The company’s growth in the first quarter of 2019 is in line with expectations, which is due to a rebound in market conditions and release of investment income.
As the market rebounded, the merger company’s acquisition of Guangzhou Securities’ expansion plan and the release of its employee shareholding plan demonstrated confidence and long-term optimism about the prospects of its leading securities firms.
It is estimated that net profit attributable to mothers will be 143 in 2019 and 2020, respectively.
800 million, 158.
1 ppm, about 1 strand.
7x 2019PB, maintain “Buy” rating.
Risk reminders: 1) Market activity is declining; 2) Stock market fluctuations impact return on proprietary investment.