Huatai Securities (601688): Technology Enables Leading Short-term Performance Disturbances Does Not Change Long-term Investment Value

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03/10/2020 0 Comment

Huatai Securities (601688): Technology Enables Leading Short-term Performance Disturbances Does Not Change Long-term Investment Value

The self-operated investment dragged down the performance, causing the performance to be slightly higher than expected. Huatai Securities’ 2018 return to its mother net profit of 5 billion yuan, -46% year-on-year, the fourth quarter net profit of 600 million, -58%.

The overall performance indicator is mainly affected by the performance of the agency service business (the withdrawal 杭州桑拿网 of equity self-operating business interruption + the implementation of the new financial instrument program exacerbates the current volatility of self-operating income performance), accrual of credit impairment losses (US $ 900 million), proceduresThe impact of increased fee and commission income.

At the end of the period, the shareholders’ equity attributable to the parent company was 103.4 billion yuan, YOY + 18.

39%, average average return on equity is 5.

32%, a decrease of 5 from 17 years.

24 units.

  Wealth management remodeling, creating an online and offline integrated service system The company reorganized its wealth management business system to create an online and offline integrated wealth management service system and refined customer operation model.

Revenue from wealth management business was 800,000 杭州夜网 yuan, a year-on-year increase of 6%.

Stock Fund Trading Volume 14.

At 27 trillion yuan, the number of monthly live-ups of Shengle Wealth Link reached 7.13 million, ranking first in the market.

The balance of margin financing and securities lending business was 43.5 billion yuan, a year-on-year increase of 17%.

The balance of the stock pledged repo business to be repurchased was 53.9 billion, of which the scale of its own funds was 28.3 billion, YOY-41%.

The company accrued credit impairment losses for 18 years.

63 ppm, attributable to the risk of stock pledge business.

  Market environment + standard adjustment, growth in equity self-operated business performance increased agency services business revenue by 1.2 billion, YOY-70%.

The market share of the equity underwriting business expanded, and M & A and restructuring transactions maintained a leading position in the industry.

The equity underwriting amount was 1385 trillion, ranking third in the market; the bond underwriting amount was 2043 trillion, a year-on-year increase of 1%, and the market ranked eighth.

The number of M & A and reorganizations was 15 and the scale reached 1104 trillion, ranking first in the market.

  Investment management business proactively adjusted its structure, and international business realized growth. Investment management business: revenue of US $ 3 billion, an increase of 11% year-on-year. The increase in revenue was mainly due to the decline in AUM.

The average monthly scale of private equity asset management is 8,124 trillion, ranking third in the market, and the average monthly scale of active asset management is 2,265 trillion, ranking fourth in the market.

The asset management structure continued to improve, and the proportion of active management increased.

International business: The only one of the four business segments achieved growth, with an annual revenue expansion of 20 trillion, + 20% year-on-year.

AseetMark AUM was $ 44.9 billion, a year-on-year increase of +5.

83%, with a market share of 10.

2%, the market ranked third.

International business as a whole is the key to new profit growth points in the future.

  Overall point of view: The average of the policy environment and market environment has improved, and self-operated businesses are expected to contribute to performance flexibility.

In 18 years, the company has completed a large-scale increase to make up for capital and contribute to business transformation.

Technology empowerment leads, and it has always maintained a high level of expenditure on information technology (in the past 18 years, information technology investment accounted for 7% of revenue), which is the core difference from its peers.

According to the profit and data disclosed in the annual report, the 19-20 year profit forecast was adjusted from 89/100 million to 81/94 trillion, maintaining the “overweight” rating.

  Risk reminder: the policy landing is less than expected; market fluctuation risk; stock pledge risk; the company’s business transformation progress is less than expected