Orient Securities (600958) 2019 Interim Report Review: Active Management Leads Self-employed Performance
Event: The company achieved operating income of 80 in the first half of 2019.
79 trillion, 重庆耍耍网 an annual increase of 88.
88% (Industry +41.
37%); Net profit 12.
10,000 yuan, an increase of 69 in ten years.
04% (industry +102.
86%); the average ROE is expected to exceed 0 growth.
94ppts to 2.
The brokerage business improved steadily.
According to the number of reports, brokerage income is increasing by 7 per year.
42% to 6.
6.8 billion, of which, securities agency business income (including seat lease) reached 5.
9.7 billion, an increase of 6 every year.
83%, a slower growth rate than the industry (+22.
06%), the market share is 1.
54%, a decline of 0 every year.
16 percentage points.
The company’s high-net-worth customers accounted for a relatively high proportion. At the end of the period, high-net-worth customers (including institutional customers) had total custody assets 成都桑拿网 of RMB 4,150.
34 ppm, accounting for 77 of the company’s brokerage client assets.
61%, an increase every year.
Although the growth rate of the company’s brokerage business is slower than that of the market, the high-net-worth client resources will help the company maintain more stable performance growth when the market changes.
Self-operated performance drives performance growth.
Affected by the overall recovery of the A-share market, the company’s self-operated investment income increased from 200 million in H1 in 2018 to 19.
6.7 billion, a surge of 868% over the same period (industry +110.
The company actively adjusted its weight and increased investment in equity and fixed income products.
Compared with the end of 2018, as of June 30, 2019, the company’s self-operated residual phase increased by 56% to 53.
At 7.8 billion, the self-operated surplus on bonds rose 9% to 845.
It is expected that through the company’s continuous construction and gradually developing an investment decision-making system, strengthening the construction of the trading system and credit risk management, the company’s self-operated business will achieve steady development.
The investment banking business encountered challenges.
Orient Securities achieved net income in the investment banking business in the first half of 195.
29 trillion, down 8% in a year (industry +26.
7%), the first is the intensified market and industry competition.
Oriental Citi is actively preparing for the science and technology board. Currently, it has applied for project budgets, and it also has a large number of rich reserve resources in the main board market.
It is expected that the investment bank business will maintain steady development through the company’s adjustment of the market progress.
Revenue from asset management business.Affected by the capital management business process fee rate, the company’s asset management business realized revenue.
37 trillion, a year-on-year decrease of 45% (industry-8%); the size of the management of the entrusted assets of TSE Asset Management is RMB 2,040.
01 trillion, of which active management accounted for 98%.
70%, the net income of the trust asset management business ranked second.
It is expected that the capital management industry will transition to active management capabilities, and Oriental Securities with active management capabilities will have the Matthew effect and it is expected to increase active management revenue in the future.
Maintain “overweight” rating and maintain target price of 12.
The company’s asset management business narrowed. About 40% of revenue in the first half of the year was contributed by about 1% of gross profit. (This part of the business accounted for only 17% in the same period last year.)Billion, 3.2 billion, and 35 billion.
Because this part has a small impact on net assets, to maintain the “overweight” level, please follow 1.
65 x PB, maintaining target price of 12.
Risk reminder: market fluctuations, asset management business fee income continues to reorganize