Haitong Securities (600837): Investment floating surplus drives net profit for ten years + 118%

Haitong Securities (600837): Investment floating surplus drives net profit for ten years + 118%

Haitong Securities (600837): Investment floating surplus drives net profit for ten years + 118%

Core point of view Haitong Securities released 19Q1 results, the company achieved revenue of 99.

500 million, previously + 74%, achieving net profit attributable to mother 37.

700 million, previously + 118%, is expected to be comparable to the industry level.

Among them, the company expected an average ROE3 in the first quarter.

14%, an increase of 1 each year.

67 points.

The significant increase in investment floating profit is the main reason for the company’s performance.

In 1Q1, Haitong’s revenue increased by 42 every year.

500 million US dollars, of which self-operated performance (investment 杭州夜网论坛 income + fair value changes-joint ventures) increased by 35 each year.

700 million is the main force for the company’s performance growth.

In the first quarter of 2019, the market grew rapidly. The Shanghai Composite Index and the Shenzhen Component Index rose by 24% and 37%, respectively.

According to the 18th Annual Report, the fair value of equity positions in Haitong Securities’ trading financial assets was US $ 17.7 billion (including direct investment and other consolidated subsidiary positions), and changes in the fair value of stocks directly entered the income statement, which had a significant impact on performance.

Interest income fluctuated slightly, and pledge impairment losses have not yet significantly reversed.

In 19Q1, the company realized interest income of US $ 41 million, a year-on-year increase of -5%.

At the end of 18, the scale of Haitong’s on-balance sheet stocks was 56.1 billion, a decrease of 20.4 billion compared with the end of 17; at the same time, considering that the average size of the industry’s two financial industries fell by about 20%.

Therefore, the scale of the credit business stock in 19Q1 increased, which drove down interest rate income.

Brokerage, investment banking and asset management performance did not fluctuate much.

Brokerage income 9.

600 million, ten years +6.

7%, market share base turnover in the same period exceeded + 19%, brokerage commission rate is expected to improve.

Investment bank income 5.

8 trillion, +1 a year.

5%, 19Q1 industry equity financing reached -34%, corporate bond and corporate bond issuance scale expanded by + 108%; Haitong has currently reported to 3 science and technology board companies, including the star project Microelectronics.

Asset management income 4.

100 million US dollars, -9% in ten years, the company will increase the direction of capital management (channel-based) from 270.7 billion euros to 217.1 billion US dollars in 18 years. It is expected that the continuous downgrade of the channel will have an impact on asset management performance.

Progress of fixed increase: The company revised the fixed increase plan, and the raised funds did not exceed 20 billion, and Shanghai Guosheng Group, Shanghai Haiyan, Guangming Group, and Shanghai Electric subscribed for 10, 30, 10, and 1 billion yuan, respectively.

Considering that most of the fixed increase quotas have been locked in Shanghai state-owned assets, and the company is estimated to be above 1 PBPB, it is expected that this certain increase will be able to be issued smoothly, which will help Haitong further consolidate capital, enhance core competitiveness, promote company diversification, and develop steadily.

Financial forecast and investment recommendations We expect the company’s BVPS to be 10 in 2019-21.

76/11.

34/12.

05, according to a comparable company assessment, we give the company January 2019.

6xPB, corresponding to expected 17.

21 yuan, maintaining the overweight level.

Risk reminders: 杭州桑拿网 Systematic risks suppress the company’s estimates; the advancement of science and technology board is less than expected.