Haitong Securities (600837) comments: self-driven performance, high revenue growth, net profit returns to second

Event: The company disclosed the 2019 Interim Report: 1H19 achieved revenue of 177.

300 million, an increase of 62 in ten years.

1%; net profit attributable to mother 55.

3 ‰, an increase of 82 in ten years.

3%, performance in line with expectations, revenue and net profit are ranked second in the industry, 1H19 annualized ROE 9.

12%.

At the end of the period, the net assets were 1,224 trillion, and the leverage was 4.

35 times.

Excellent trading investment ability, annualized self-invested investment yield of 5.

3%, driving high growth in performance.

1H19 company’s large self-employed business income 58.

500 million, an increase of 213% in ten years, and revenue accounted for 44.

7%; return on investment (annualized) is 5.

3%, an increase of 3 from 18 years.

3 points.

The scale of financial investment is relatively stable, 2290 trillion in 1H19, an increase of 9 earlier.

9%, accounting for 187% of net assets; of which, the size of tradable financial assets was 1967 ppm, an increase of 11 earlier.

0%, debt investment scale 31.

500 million, an increase of 361% over the beginning of the year.

The company actively carries out market-making and derivative transactions. The market share of core ETFs in the 1H19 core ETF market ranked first in the market. The main market maker on the Shanghai Stock Exchange 50ETF exchange continued to maintain a Class A rating.

Derivatives business is integrated in the first echelon of the Hong Kong market. The turnover of 1H19 Warrants and CBBCs was 380 billion Euros, ranking second in the Hong Kong market.

The financing business structure was optimized, and asset quality was further consolidated.

1H19█ net income22.

5 ‰, a ten-year average of 6.

9%, mainly due to the increase in interest expenses, and the company proactively adjusted its business structure and proactively reduced the size of its stock pledge business.

The scale of financing business at the end of the period was 885 trillion, of which the stock pledge balance was 488 trillion, a decrease of 46 trillion compared with the earlier period. The performance ratio of stock pledge performance guarantee was 245%, an increase of 50% compared with the early period.

The balance of Liangrong was 396 trillion, an increase of 49 trillion in the early and early stages, and the total market share was 4.

35%.

1H19 Finance lease interest income23.

US $ 600 million, + 40% a year. New leased business in 1H19 achieved US $ 27.3 billion, total revenue of US $ 3.5 billion, + 44% per year, and provision coverage area of 335%.

Retail and institutional brokerages have a good momentum of development, and the second-tier commission income industry.

1H19 Brokerage Revenue 18.

96 trillion, ten years +14.

4%; of which, the company’s trading unit seat net rental income2.

96 ppm, an increase of 15 in ten years.

1%, ranking second in the industry.

The company’s stock base transaction value 5.

79 trillion (excluding the cargo base), an annual increase of 30.3%, customers can trade total assets1.

73 trillion US dollars, an increase of 359.7 billion compared with the end of 18; e Haitongcai APP users exceeded 28 million people, 3.5 million people live each month, the company’s OneMart increased customer market share by more than 9% during the reporting period.

The international investment banking business maintained its leading position among Chinese securities firms.

1H19 investment banking business income 16.

500 million, 8% per year. The net income of internal investment banking business ranked third in the industry. In 1H19, 10 A-share equity financing projects were completed, and the size of bond underwriting was US $ 184.3 billion.

Haitong International maintained its leading position in Hong Kong, with 24 Hong Kong IPOs and 27 equity financing projects, ranking first in the Hong Kong market; and completed the “Riching Coffee” US stock IPO.

Asset management revenue growth exceeded expectations, and Haitong Asset Management’s active asset management scale grew rapidly.

1H19 income from asset management business11.

40,000 yuan, an increase of 31 in ten years.

7%; 1H19 Haitong Asset Management AUM is 307.9 billion US dollars, of which the active management scale is 137.3 billion US dollars, an increase of 27% over the beginning of the year, net profit increased by 193%, 53 small collection products issued a size of 14 billion US dollars, an increase of 20.

7 times.

At the end of the period, Haitong International’s AUM exceeded 48 billion euros.

Plan to increase 20 billion to develop FICC and capital intermediary business.

The subsidiaries developed steadily, 杭州夜网论坛 and the merger of the company’s third overseas listing platform was reported to complete the listing of Hong Kong shares.

In addition, Haitong International Holdings completed a capital increase of US $ 2 billion and Haitong Bank3.

7.5 billion euros were re-loaned, and Haitong International issued 700 million US dollars of senior notes.

At present, the company’s stock value-added materials have been approved by the Securities Regulatory Commission. The proposed US $ 200 trillion is mainly used to expand the scale of FICC investment (US $ 10 billion) and develop capital intermediary business (US $ 6 billion).

Investment suggestion: Maintain the company’s overweight rating, the flexibility of large self-employment appears, and net profit revenue returns to second in the first half.

We adjusted the average daily turnover in the target market and the assumption of the balance between the two financial services to affect the company’s profit forecast. It is expected that net profit attributable to mothers will be achieved in 2019-21.

8/117.

6/137.

100 million (previously estimated 96.

0/119.

1/133.

800 million), an annual increase of 78.

1% / 26.

7% / 16.

5%, the current price corresponds to 17 times the dynamic PE in 2019, and the PB is 1.

25 times.