Guotai Junan (601211) 2019 Interim Report Review: Risk Control-Based Leadership in Scale
Event: Guotai Junan disclosed the semi-annual report for 2019, and realized revenue of 140 during the reporting period.
950,000 yuan, +22 a year.
Net profit attributable to mother 50.
20 trillion, +25 for ten years.
The recommended average ROE is 4.
03%, an increase of 0 over the same period last year.
Institutional business continued to develop, stock underwriting contracted, and corporate debt increased significantly.
In the first half of the year, institutional financial business revenue exceeded + 34%, and the revenue share reached 41%, an increase of 3pct compared with the same period of the previous year.
Among them, investment bank income is 700 million (ten years -10%), and institutional investor service income is 51.
10 billion (+ 43%).
The company officially released the Matrix system and Taohe platform to promote the establishment of enterprise institutional customer integration mechanisms.
At the end of the reporting period, the number of corporate clients of the group was approximately 4.
10,000 households, an increase of 17% over the end of the previous year; customer asset size 2.
3 trillion yuan, an increase of 50% over the end of the previous year.
In the first half of 2019, the amount of securities underwriting was 1929.
30 上海夜网论坛 trillion, +31 for ten years.
96%, ranking 4th in the industry.
IPO lead underwriting amount 17.
100,000 yuan, -40% for ten years; the main underwriting amount of refinancing is 212.
US $ 5.3 billion, -60% per year; underwriting amount of corporate creditors is 672.
55 ppm for one year + 150%.
In terms of institutional investor services, the customer asset size of the PB business at the end of the reporting period was nearly 90 billion yuan, +44 compared to the end of the previous year.
5%, scale of hosting outsourcing business1.
03 trillion, ranking second in the industry, an increase of 10 over the end of last year.
Among them, the scale of custodian public funds continued to rank first among securities companies.
Both equity derivatives and FICC business have achieved higher investment returns, gradually increasing the size of 2013 million US dollars, an increase of 177% per year, the scale of the issuance of income vouchers ranks second in the industry among securities companies, and cross-border business realizes self-investmentAnd customer services.
Equity pledge business transferred high-quality assets on the basis of stable operation and enhanced professional capabilities. At the end of the reporting period, the balance of stock pledge business pending purchase was 443.
400,000 yuan, down 9 from the end of the previous year.
96%, of which self-owned financial financial surplus was 355.
410,000 yuan, ranking third in the industry, down 10 from the end of last year.
Guotai Junan accrued credit impairment losses in the first half of the year4.
0.94 million yuan, equivalent to the same period last year.
Personal financial business strengthened its advantages.Personal financial business realized revenue 41.
72 ppm, +11 for ten years.
In the first half of 2019, the Group’s preliminary retail integration coordination mechanism, in-depth creation of a retail customer service system, improvement of the customer’s full-coverage response mechanism, and promotion of high-net-worth customer transformation and development services.
The brokerage industry continued to maintain its leading position, and the net income of agency trading securities business ranked first in the industry with a market share of 5.
75%, a decrease of 0 from the end of the previous year.
Margin of margin financing and securities lending 548.
2.5 billion, an increase of 20 from the end of the previous year.
43%, market share 6.
02%, ranking third in the industry.
Proactive management scale growth drives steady expansion of asset management.
At the end of the reporting period, the scale of asset management was 7,637 trillion, ranking the third in the industry, which was +1 compared with the end of the previous year.
Among them, the scale of assets under active management was 4042 million, the proportion increased to 52.
93% (41% at the end of the previous year).
In terms of fund management, the share of Huaan Fund’s public fund management scale was 3,171 trillion, +15 compared with the end of the previous year.
06%, a record high.
Investment suggestion: The company is the only securities company in the top five securities companies that has obtained securities company classification level A and AA level for 12 consecutive years. Its revenue, capital and other indicators continue to lead. The heavy capital operation gives institutional clients an incremental business space for service.
We expect Guotai Junan’s EPS to be 1 in 2019/2020/2021.
56 yuan (previous forecast was 1 for 2019/2020.
30 yuan, adjusted due to changes in the market environment), BPS is 15 respectively.
87 yuan, corresponding to 1 for PB.
03 times, ROE is 7 respectively.
17% / 8.
78% / 9.
The company has a stable operation, a leading business scale, and a strong drive for future innovation.
6 times PB estimate, target price of 24 yuan, maintaining “recommended” level
Risk Warning: The development of innovative businesses is blocked, and financial supervision is tightened.