Huatai Securities (601688) Interim Review: The elasticity of self-operated performance is better than expected to accelerate innovation, transformation and development

The core point of view is that the performance is in line with the total expectation of the monthly report in the first half of the year. The growth in performance is mainly due to the self-operated contribution company’s release of the 2019 half-year report.

070000 yuan, +35 for ten years.

18%; net profit attributable to mother is 40.

57 trillion, +28 a year.


Attributable net assets to 1168.

2.4 billion, +29 per year.


Recommended average ROE3.

82%, an annual increase of 0.

24 units.

The company’s leverage on excluding customer margins will be from the end of 20182.

96 increased to 3 in 2019H1.


  Brokerage, investment banking, asset management, self-employment, and capital intermediary revenue accounted for 20%, 5%, 13%, 31%, and 11%, respectively.

The increase in performance was mainly due to the significant increase in self-operated business income.

  The elasticity of self-operated performance is better than expected. Accelerating innovation, transformation and development The company focuses on customer needs, and has structured two major business systems, namely retail and wealth management and institutional customer service, with a clear strategic positioning, reflecting weakening of business advantages, and strengthening the development of transformation and innovation.
  Retail and wealth management businesses have grown.

The company’s retail and wealth management businesses include securities and futures brokerage, financial product sales, and capital intermediary businesses.

In the first half of the year, the company continued to grow in the exploration of emerging technologies and the exploration of big data. “Zhangle Wealth Link” ranked first in the number of securities company apps.

1) In terms of brokerage business, the company achieved net income from brokerage business in the first half of the year22.

4 trillion, +20 a year.

6%, the growth rate of the brokerage business is comparable to the level of its peers.

2) In terms of capital intermediary business, the balance between the two markets in the first half of the year rebounded (+ 21%), and the scale of stock pledges continued to shrink.

The company achieved net interest income of 12 in 2019H1.

7 ‰, at least -3.


As of 2019, H1’s stock pledged $ 15.8 billion, a significant change from the end of 201844.

The balance of Liangrong was 54.8 billion yuan, an increase of 26% from the end of 2018, which was higher than the industry growth rate.

  Self-employed to improve the service performance of the organization.

Corporate institutional services include investment banking, research and institutional sales, and investment transactions.

1) In terms of investment trading business, benefiting from the market recovery in the first half of the year, self-operated performance was better.

In the first half of 2019, the company realized net income of self-operated business34.

3 ‰, +119 per year.

7% is the primary result of performance growth, reflecting the company’s beta attributes.

In addition, the company accelerated the development of innovative businesses such as derivatives, and terminated the end of June’s earnings swap and OTC transaction stocks’ nominal principals increased by 310 respectively.

2%, 27.

3%.2) In terms of investment banking business, the company’s net income from investment banking business in the first half of 20196.

0 million yuan, at least -25.

2%, mainly due to the substantial increase in the scale of the company’s equity underwriting42.


3) In terms of asset management business, the company realized net income from asset management business in the first half of 201914.

0 ppm, +25 a year.

1%, which is higher than the industry level and reflects the robust attributes.

  Investment suggestion: Continue to be optimistic about the company’s comprehensive strength improvement 1) The company’s capital advantage will go further and take the lead in exploring GDR issuance.

Issued 8251 in June 2019.

5 GDRs listed on the London Stock Exchange.

2) AssetMark goes public, accelerates overseas deployment, further improves the company’杭州夜网论坛s investment advisory capabilities, and continues to be optimistic about the transformation of wealth management.

The company’s preliminary net assets for 2019-2021 are expected to be 13.

33, 14.


13 yuan, corresponding to 1 at the end of 2019-2021.


34, 1.

26 times, located in the static PB hub of the company’s A-shares in 15H1-2018. At present, it is expected to further improve the room, combined with the company’s future performance elasticity and profitability trend changes, taking into account the estimated premium of the leading securities firms, the company will be granted 20191.

8xPB estimates that the fair value of the shares is 24.

0 yuan / share, the fair value of H shares is 14.

3 Hong Kong dollars / share, maintain “Buy” rating on A and H shares.

  Risk warning: Equity market adjustment leads to continuous increase in stock pledged repurchase impairment losses; rising credit risk, etc.