Guotai Junan (601211): Personal Transformation Institutions Breakthrough and Full Growth
Strive for progress while maintaining a stable leading position.
In 2019H1, the company realized operating income of 14.1 billion yuan (YoY + 23%), net profit attributable to its parent of 5 billion yuan (YoY + 25%), and EPS 0.
54 yuan / share, ROE 4.
03% (+0 year-on-year.
8pt), adjusted leverage ratio 2.
Excluding the one-time gain or loss from the disposal of 51% of Guolian’an Fund in 2018Q16.
6.4 billion, the company’s adjusted operating income, net profit growth rate of 30%, 50% each year.
In 2019H1, Guotai Junan Institutional Finance, Personal Finance, Investment Management, and International Business contributed net income of 49% / 22% / 22% / 9%, respectively, which were +36% / + 21% / + 4% / + 38% year-on-year.
In an active market, investment and asset management have grown together.
1) The positioning of the capital market hub has clearly brought new development and changes to the securities industry since the beginning of the year, driving market sentiment. In the first half of the year, the Shanghai Composite Index, Shenzhen Component Index, and GEM Index closed up 19% / 27% / 21% respectively.
It is estimated that Monarch’s self-operated business income was 4.5 billion, a year-on-year increase of + 50%; of which, the fair value changed from negative to positive, from last year -800 million to this year +800 million.
2) As of the end of June, the monarch’s asset management scale was US $ 763.7 billion, an increase of 2% against the trend at the end of the previous year.
The scale of active management increased by 1 compared with the end of the previous year.
7%, the proportion increased to 53%.
Under the optimization of the structure, the net income of the asset management business was YoY + 8%, which was greater than the scale growth rate.
Adhere to the transformation of wealth management and differentiated development of credit business.
1) Brokerage business: The net income of the brokerage business in 19H1 was 3.2 billion yuan, a year-on-year increase of 24% and accounting for 22% of total revenue.
Among them, the agency’s net income from securities business (including seat leasing) was 29 trillion, a year-on-year increase of 26%.
The market share of the trading market remains the first in the industry, but there are a total of 5.
8% lower than the beginning of the year.
3pt, commission rate is still subdivided into 0.
2) Adhering to the transformation of wealth management.
In terms of technology application, the number of users of Junhong app on the mobile terminal at the end of the period exceeded 31.7 million, an increase of 4 from the end of the previous year.
3%, monthly activity ranks top 2 in the industry.
As for the investment consulting team, the number of investment consultants was 2,380, an increase of 11% over the end of the previous year, and the average monthly scale of consignment products was 1,555 trillion, an increase of 9% over the previous year.
2) Credit business: The balance of margin financing and securities lending continued to rebound since bottoming out in 2018. The book value of 19H1 was US $ 54.8 billion, an increase of 20% over the beginning of the year;Performance guarantee ratio is 235%.
Capital was raised at the end of the period, and the proportion of impairment allowances on financial assets purchased under resale agreements was 1 respectively.
17%, with sufficient and sufficient accrual, and the subsequent follow-up as the market gradually stabilizes, it is expected that the impairment losses will continue to reverse.
Investment bank bonds performed well.
In 2019H1, the company’s investment banking business program fees and commission net income was 11 trillion, an increase of 1% year-on-year, turning to the continued negative growth of the business since 2017.
Securities sponsorship business and financial advisory business were the main growth drivers, growing 49% / 37% respectively.
According to the company announcement, 2019H1 Guotai Junan realized equity financing of 23 billion yuan (YoY-59%) and bond financing of 170 billion yuan (YoY + 97%).
As the effectiveness of the new rules for mergers and acquisitions and restructuring expands, and the acceleration of the science and technology board, the company’s investment banking business will be further strengthened.
The policy dividend was accelerated and leading brokerage firms took the lead.
The company’s industry leading strength is strong. In the first half of 2019, the company’s operating income, net profit, total assets, net assets and net capital average ranked second in the industry.With the enhanced release of policy dividends, it will seize business opportunities.
As of the announcement date of the 19H1 financial report, the company has successively announced corporate bonds, H-share placements, short-term financing bonds, financial bond issuance plans, and 苏州桑拿网 gradually optimized asset and liability structure in 2019 to accumulate capital for business operations.Expand and achieve balanced and diversified development.
The company’s 2019 PB is expected to be 1.
2 times, currently at an estimated low level, maintaining the recommended level.
Risk Warning: The policy advances less than expected, and the market fluctuates greatly.