Guotai Junan (601211) 2019 Interim Report Review: Brokerage Business Leads Industry Development Comprehensive Financial Advantages Appear gradually

Guotai Junan (601211) 2019 Interim Report Review: Brokerage Business Leads Industry Development Comprehensive Financial Advantages Appear gradually

The event company announcement shows that in the first half of 2019, the group achieved operating income of 140.

95 ppm, an increase of 26 per year.

3.4 billion, an increase of 22.

99%; net profit attributable to mother is 50.

上海夜网论坛20 ppm, a 25-year growth rate.

twenty two%.

The basic EPS is 0.

54 yuan, an annual growth rate of 25.

58%, the average return on average net assets increased by 4.

03%, a year increase of 0.

76PCT.

The improvement of the company’s performance was mainly due to the general improvement of the stock market in the first half of 2019, and the stock trading quotas of the Shanghai and Shenzhen stock markets increased.

The change in revenue was mainly due to the increase in net income from brokerage fees.

14 trillion, an increase of 24.

21%; gains and losses from changes in fair value increase by 16 each year.

.

60 ppm; other business income increases by 5 per year.

91 trillion, an increase of 110.

46%.

Investment Points 1.

The asset-light business has developed steadily. The growth of assets-heavy business represented by self-employment has shown that the company’s Q2 revenue was $ 7.
4 billion, with an annual growth rate of 41.

87%, a month-on-month growth rate of 10.

53%; net profit attributable to mother is 20.

1.4 billion, a growth rate of 15 in ten years.

12%, month-on-month growth rate of -33.

00%.

The net fee and commission income for the asset-light business representatives of the 2019H1 company was 52.

24 ppm, an increase of 15 over the same period last year.

93%; of which, the net income of securities trading business, the net income of securities underwriting business, and the net income of asset management business increased by 24 respectively.

21%, 1.

33%, 7.

67%.

^ Net income and self-employed investment grew at a rate of -7 in ten years.

92%, 49.

92%.

Judging from the performance of Q2 2019 alone, the net fee and commission income was 29.

32 ppm, the previous growth rate was 32.

81%, a month-on-month growth rate of 27.
90%, the net income from the securities trading business, the net income from the securities underwriting business, and the net income from the asset management business increased by 41.
25%, 13.

42%, 39.

69%, a month-on-month growth rate of 5.

72%, 80.

77%, 60.

95%.

^ Net income, the growth rate of self-employed investment is -15 in ten years.

99%, 127.

97%, Q2 ratio to Q1 chain growth rate were -24.

37%, -4.

55%.

In terms of the proportion of the structure, in the first half of 2019, the net income from the agency business of securities trading, the net income from the underwriting business, the net income from the asset management business, the net income from the index, and the self-operated ratio were 22 respectively.

35%, 7.

55%, 6.

17%, 18.

06%, 31.

73%, 2019Q2 accounted for 21 respectively.

88%, 9.

26%, 7.

26%, 14.

81%, 29.

52%.

2.

Under the market recovery, the brokerage and client side of the brokerage agency with improved flexibility of the self-operated business, the company actively uses the matrix system and the Dow platform to actively promote the establishment of corporate institutional customer intervention mechanisms; while at the retail client, it improves the customer’s full coverage response mechanism and strives for high net worthFor customer development, Junhong APP ranked second in the industry at the end of the month.

In the first half of 2019, the company’s net income from brokerage business was 31.

500,000 yuan, a growth rate of 15 in ten years.

93%; expected revenue for the second quarter was 16.

19 trillion, a growth rate of 41 in ten years.

25%, a month-on-month growth rate of 5.

72%.

H1 achieved self-employed income in 201944.

7.2 billion, the previous growth rate was 49.

92%.

Q2 self-employed income was 21.

8.4 billion, an annual growth rate of 127.

97%, a month-on-month growth rate of -4.

55%.

As of 2019, the trading volume of H1 shares is 738197.

61 ppm, the average daily gradual stock base transaction volume increased by 29.
40%, Q2 progressive trading volume is 377,636.
11 million yuan, an increase of 38 every year.

65%, an increase of 1 compared with Q1.

twenty four%.

In the first half of 2019, the company’s market share of net income (including seat leasing) for the securities business from agency trading5.

75%, ranking first in the industry.

As of June 30, 2019, the size of the company’s transactional financial assets was 1750.

33 ppm, an increase of 50 in ten years.

77%, accounting for 32 of total assets.

39%, an increase of 27 from the end of the previous year

.

13%.

The scale of proprietary equity securities and securities derivatives was 365.

779.1 billion yuan, accounting for 45 of net capital.

48%; the scale of self-operating fixed income securities is 189, accounting for 189% of net capital.

78% 3.

The initiative to shrink the size of stock pledges resulted in a relatively short net interest income. The credit impairment losses were fully extended to the end of June 2019. The funds repurchased from the market stock pledges amounted to 5,267.

670,000 yuan, a decrease of 14 from the end of last year.

78%.

The stock repurchase surplus of stock pledge business is 443.

40 ppm, a decrease of 9 from the end of the previous year.

96%, of which 355 was the capital surplus.

4.1 billion, a decrease of 10 from the end of the previous year.

78%, ranking third in the industry, with an average compliance guarantee ratio of 235%.

As of June 30, 2019, the company’s financing scale was 634.

820,000 yuan, an increase of 18 over the end of 2018.

31%, an increase of 2 over the same period last year.

12%.

In Q1 2019, the company raised 697 funds.

30 ppm, with a one-year growth rate of zero.

02%, the growth rate in the first half of 2018Q3 was 3.

16%, the growth rate in Q1 2019 is 29.

96%.

In the first half of 2019, the company’s net interest income was 25.

4.5 billion, a decrease of -7 a year.

92%, the company’s interest income is 59.

28 ppm, a year-over-year growth rate of -8.

08%, interest expense was 33.

8.3 billion, the previous growth rate was -8.

17%.

Credit impairment losses in the first half of 2019 were 4.
94 ppm, a six-year increase of 6.
47%.

Credit impairment in Q2 of 2019 reached 8.

6.9 billion yuan.

2019Q1 is -3.

750,000 yuan, 2018Q1 is 1.

79 million, 4 in 2018Q4.

320,000 yuan, 9 in 2018.

7.7 billion.

The decrease in net interest income was mainly due to the company’s relative caution, which was due to the active contraction of stock pledges.

4.

Initial public offerings, additional offerings are differentiated, the exception of the science and technology board is still throwing exercise rights, and strong companies have expanded.
The initial public offering business investment strengthened the coverage of key regions and industries, formed an integrated synergy mechanism, and the overall competitiveness increased steadily.

The company raised funds for underwriting in the first half of the year17.

1 billion yuan, with a market share of 2.

83%, with an additional market share of 9.

33%.

In the first half of the year, the underwriting for the initial issuance was all contributed by Q2. Compared with Q1, Q2’s market share of additional underwriting declined.

The bond underwriting business seized the proceeds of high-grade corporate bonds, financial bonds and local government debt, and the scale of underwriting grew rapidly. The total amount of corporate bonds and other bonds underwritten was 1,695.

1.7 billion, a ten-year growth rate of 94.

01%, wind shows that the company paid government bonds, corporate bonds, and financial bonds with a market share of 6, respectively.

76%, 6.

56%, 5.

55%.

In the first half of the year, the company’s net investment income was 10.

64 ppm, a year-on-year growth rate of 1.

33%, of which Q2 realized net income of 6.

850,000 yuan, an increase of 80 from Q1.

77% is expected to be mainly contributed by the science and technology board.

We believe that the company will benefit under the new indicators of financial supply-side reform.

The company actively reserves science and technology board projects, ranking first in the market.

As of August 22, 2019, the planned underwriting amount of the company’s science and technology board project is 81.

9.8 billion, with a market share of 6.

15%. At present, Jingchen shares and Xinmai Medical have been listed.

In the future IPO of science and technology board, the follow-up investment business is expected to further bring potential performance growth to the group, of which the current floating profit of science and technology board is less than 2.

4.3 billion.

5,

The industry’s capital management interest rate and capital management revenue growth rate will improve until the end of June 2019. The total size of the asset management business of securities companies.

15 trillion yuan, a decrease of 16 from the end of the previous year.

54%.

In the first half of 2019, Guotai Junan Asset Management insisted on value investment, optimized investment research system, continuously enriched product lines, and steadily improved its active management capabilities.
According to the number of reports, there were 64 newly issued collection products, ranking first in the industry, with an increase of 121%.
At the end of the reporting period, Guotai Junan Asset Management’s asset management scale was US $ 763.7 billion, an increase of 1 from the end of the previous year.

73%, of which, the scale of assets under active management was 404.2 billion yuan, an increase of 30 from the end of the previous year.

14%, the proportion of active management increased to 52.

93%.

According to the statistics of the Securities Industry Association, at the end of June 2019, Guotai Junan Asset Management’s asset management business ranked third in the industry.

In terms of revenue, the second quarter improved.

2019H1 company’s net income from asset management is 8.

7 billion, the previous growth rate was 7.

67%, of which Q2 is 5.

3.7 billion, a chain growth of 60.

95%.

6.International business continues to perform strongly and maintains a leading edge In the first half of 2019, Guotai Junan International Investment Banking business, especially bond issuance and underwriting, continued to maintain a sound development trend. Corporate business grew steadily, customer structure was significantly optimized, wealth management customers grew rapidly, and products became increasingly complete, Continue to maintain the leading position of Chinese-funded brokers in Hong Kong.

In the first half of 2019, Guotai Junan International Investment Bank’s business, especially bond issuance and underwriting, continued to maintain a good development trend. The business of corporate institutions has grown steadily, its customer structure has been significantly optimized, its wealth management customers have grown rapidly, and its products have become increasingly sophisticated.

The company realized revenue 23.

63 billion US dollars, the previous growth rate was 40.

82%.

Compared with the same period last year, financial products, market making and investment income have increased by 205 per year.

24%, up from 20 last year.

50% jumped to 44.

44%, while loan and financing income decreased by 22.

07%, accounting for 42.

71% dropped to 23.

64%.

7.Expenses have increased, focusing on wealth management transformation. Operating expenses for the first half of 2019 were 72.

0.6 billion, the previous growth rate was 19.

64%.

Operating expenses for the second quarter were 46.

90 trillion, a growth rate of 59 in ten years.

84%, a month-on-month growth rate of 86.

39%, mainly affected by other business costs and credit impairment losses.

The 2019Q1 operating expenses were 25.

1.7 billion, an annual growth rate of -18.

53%, month-on-month growth rate of -37.

12%, mainly due to the rotation of credit asset impairment losses.

Management expenses for the first half of the year were 55.

86 ppm, an increase of 12 in ten years.

87%; of which, it was 28 in the second quarter.
8.4 billion, an annual increase of 27.
92%, a month-on-month growth rate of 6.

71%.

Estimation and investment advice The company focuses on the establishment of two major systems-retail and institutional. The purpose of the creation is to provide comprehensive services to customers, regardless of whether they are retail or institutional customers.

The purpose of the second layer is to break the internal license style and serve customers with integrated services. At present, the construction of these two systems is almost completed.

The company’s mission of “creating value with financial services”, we are optimistic that the company will become a “integrated financial service provider with local influence, global coverage and significant influence” as its development goal.

The company’s current leverage ratio is approximately 2 at the end of 2018.

8 times increased to 3.

11, we expect the leverage ratio will further increase, and the performance growth rate can be expected.

The company’s EPS for 2019-2021 is expected to be 1.

03/1.

29/1.

46 yuan, corresponding PE is 16.

92/13.

46/11.

91 times, maintaining the “recommended” level.

Risk reminders: Sino-US trade friction exacerbates risks; severe market decline risks; performance is less than expected risks; exchange rate fluctuation risks; macroeconomic downside risks.