CITIC Securities (600030): Equity bond underwriting ranks first, investment income is positively driving significant performance
Investment Highlights: CITIC Securities achieved operating income of 217 in 1H19.
900 million, an increase of 9 in ten years.
0%, achieving net profit of 64.
5 billion, an increase of 15 in ten years.
8%, performance growth in line with expectations.
At the end of the reporting period, the company’s total assets were 723.9 billion, an increase of 10.
8%, net assets attributable to mothers was 156 billion, an increase of 1.
9%, leverage ratio is 3.
86 times, an increase of 0 from the end of last year.
In 1H19, the percentages of corporate brokerage, investment banking, asset management, indexing, self-employed and other business revenues were 17 respectively.
9% and 18.
6%, the business structure remains balanced.
The investment bank’s underwriting of stock and debt both grew, and brokerage and asset management shifted slightly.
1) The investment bank’s underwriting business for stock bonds has steadily ranked first in the industry, and both the underwriting scale has grown.
According to the data of the interim report, the underwriting of the A-shares of the company in 1H19 was 1,29 billion, with an increase of 34 in future.
7%, of which IPO underwriting 160.
3 billion, an increase of 101 in ten years.
6%, refinancing underwriting 1068.
400 million, an annual increase of 28.
3%, the growth rate is better than the industry; bond underwriting scale was 452.9 billion, an increase of 72 during the same period.
6%, the increase in the scale of stock bond underwriting promotes the increase of underwriting sponsorship recommendation income8.
3%, it is expected that the continuous listing of science and technology board 杭州夜生活网 companies in the second half of the year will still have a positive pull on the company’s investment banking business.
2) The income of large brokerage business temporarily decreased.
6%, securities, futures, foreign exchange brokerage income three times respectively.
0% and -102.
7%, the decrease in securities brokerage income was mainly due to the breakdown of the market share of stock-based trading. According to the company’s disclosure, the trading volume of stock-based trading in 1H19 was 8.
2 trillion, the estimated market share is 5.
6%, a decrease of 0 per year.
4pct is actually the rise of the stock market in 1H19, and the turnover rate of retail customers is higher than that of institutional customers. At the same time, the company’s advantage in institutional customers is greater than that of retail customers, resulting in a shrinking market share;Impact and channel business adjustment impact, aggregation, orientation, and special scale were 117.9 billion, 117.8 billion, and 8 billion, respectively.
The effect of large self-operated investment income was positive, and the scale of credit business rebounded.
The 1H19 company’s self-employed investment income was 71.
700 million, an annual growth of 55.
8%, mainly due to the favorable market environment, investment income obtained from disposal of financial assets increased significantly.
At the end of the reporting period, the total size of the company’s financial assets was 319.8 billion, an increase of 6 earlier.
9%, of which trading financial assets were 266.3 billion, other debt investments were 36.9 billion, and other equity instrument investments were 16.6 billion. The increase in scale included increased investment scale and fair value growth; the nominal principal of the company’s derivative financial instruments at the end of the reporting period was 1.
08 trillion, an increase of 7 from the beginning of the year.
3%, interest rate, currency, equity derivatives have grown.
The scale of credit business stopped rising.
At the end of the reporting period, the scale of the company’s own capital stock pledge was 43.7 billion, an increase of 13 earlier.
5%, the company’s stock pledge business adjusted earlier, it began to shrink from the first half of 2018, and has replaced 38.5 billion by the end of 2018. Under the framework of strengthening risk control and optimizing the business structure, it appropriately increased supplementary business.Impairment of financial assets sold 3.
8.5 billion, a decrease of 12 previously.
At the end of the reporting period, the scale of funds raised was 64.5 billion, an increase of 12 earlier.
7%, mainly benefited from market growth and increased demand for investor financing business.
CITIC Securities is the first to bid, and maintains a “Buy” rating.
Maintaining the profit forecast for 19-21, the company’s net profit attributable to mother is expected to be 150 in 2019-2021.
100 million, 188.
800 million and 213.
800 million, corresponding to the latest closing price of PE is 20 times, 16 times and 14 times.
Risk reminder: The increasing uncertainty of the external environment leads to major market adjustments, and the policy launch is less than expected.