CITIC Securities (600030) The Third Quarterly Report of 2019
Incident CITIC Securities released the third quarter report of 2019.
In the first three quarters of 2019, the company achieved operating income of 327.
74 trillion, +20 for ten years.
45%; net profit attributable to mother is 105.
22 trillion, +43 a year.
85% is expected to average ROE 6.
As of the end of the third quarter of 2019, the company returned to its parent shareholders’ equity of 1600.
820,000 yuan, +3 from the beginning of the year.
85%; BVPS 13.
21 yuan / share.
The brief evaluation results are in line with expectations, and the leader is Hengqiang.
(1) Relying on the incremental performance contributed by the underwriting and follow-up business of Kechuangban, the company achieved operating income of 327 in the third quarter.
7.4 billion per year 20.
45%; net profit attributable to mother reaches 105.
22 trillion, +43 a year.
(2) According to the caliber of the income statement, in the first three quarters, brokerage / investment bank / asset management / index / investment income accounted for 17% / 9% / 13% / 5% / 37% of total operating income, respectively.
The brokerage business has less flexibility, and the investment banking business benefits from the science and technology board.
(1) In the first three quarters, the market-wide stock-based transaction quota was +34.
19%, the company realized the net income of the brokerage business instead of -2.
48%, initially two.
Headquarters, the company’s brokerage business customers are mainly institutions rather than individuals. The flexibility of transaction volume of institutional customers is relatively small, resulting in the company’s stock base transaction volume growth rate is lower than the industry average, with a market share of 5 in 2018H1.
90% recognized 5.
55%; restructuring, the company’s transaction commission rate has also increased.
(2) In the first three quarters, the company achieved net income from investment banking business29.
810,000 yuan, +22 for ten years.
68%, mainly due to the increase in the amount of IPOs and debt commitments.
According to Wind statistics, the company achieved a total of 269 underwriting IPOs in the first three quarters.
24 ppm, +133 a year.
84% of the projects sponsored by the merger of the Science and Technology Innovation Board were completed and listed; the refinancing underwriting amount reached 1588.
73 trillion, +20 ten years ago.
26%; the amount of debt sales reached 6,376.
430,000 yuan, +28 a year.
The asset management business continued to transform, with both investment volume and price rising.
(1) In the first three quarters, the company realized net income of asset management business41.
01 megabytes, -1% a year, mainly due to the rapid compression of the channel business scale; the company’s proactive management 合肥夜网 capabilities continue to improve, which is beneficial to long-term development.(2) In the first three quarters, the company realized investment income + income from changes in fair value 121.
27 trillion, +73 ten years ago.
12%, mainly due to the increase in both the size of financial assets and investment yield.
840,000 yuan, +13 from the beginning of the year.
09%, the return on investment in the first three quarters rose to 3.
Credit business has income and release, and the impairment provision is reduced every year.
In the first three quarters, the company realized net interest income17.
86 ‰, at least -14.
42%, mainly due to the reduction in the size of stock pledges and the increase in the scale of interest-bearing debt.
At the end of the third quarter, the company’s monetary funds were 1353.
500,000 yuan, +13 from the beginning of the year.
05%; fund balance 673.
410,000 yuan, +17 from the beginning of the year.
73%; buy-back financial assets 658.
480,000 yuan, -2 from the beginning of the year.
26%; bonds payable and short-term financing bonds payable +17 respectively from the beginning of the year.
Simply put, the company accrued credit impairment losses in the first three quarters7.
2.5 billion, up from 12 in the same period last year.
32 ppm, the default risk of the stock pledge business has been mitigated for many years.
The acquisition of Guangzhou Securities was approved, and business in South China is poised for development.
On October 30, 2019, the company issued shares to purchase Guangzhou Securities assets and related transactions and was unconditionally approved by the CSRC.
According to the latest acquisition plan, the company intends to purchase and replace Guangzhou Futures 99 from Yuexiu Financial Holdings and its wholly-owned subsidiary Yuexiu Financial Holdings Limited.
03% shares and Golden Eagle Fund 24.
After 01% equity, 100% equity of Guangzhou Securities was priced at 134.
After the reorganization, the number of employees of CITIC Securities in Guangdong Province and surrounding areas will be significantly increased. By making full use of Guangzhou Securities’ existing operating network layout and customer resources, CITIC Securities will achieve a leapfrog in its business in Guangdong Province and the entire South China region.Development, seizing the historic possibilities brought by the national strategy of the “Belt and Road” and the “Guangdong-Hong Kong-Macao Greater Bay Area”.
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 concept of “supporting the good and limiting the bad”, the capital strength has increased (the net assets at the end of the first half of 2019 ranked the first in the industry1) CITIC Securities, with complete wind control system (achieved Class A AA rating from the China Securities Regulatory Commission for 3 consecutive years) and enhanced innovation capabilities (Science and Technology Board, derivatives market making, and leading overseas business scope) will be recognized as beneficiaries.Gate 1: The acquisition of Guangzhou Securities and the implementation of the employee stock ownership plan will accelerate the release of its performance potential.
We expect CITIC Securities’ BVPS to reach 14 in 2019-2020.
11 yuan and 14.
49 yuan, corresponding to the current expectations of 1.
55X PB and 1.
51X PB, maintaining CITIC Securities (600030.
SH) “Buy” rating.
Risk warnings: stock market recovery does not meet expectations; marginal easing in monetary policy does not meet expectations; capital market reform progress does not meet expectations.