CITIC Securities (600030): Investment Bank + Investment-Driven Performance Upstream Carrier Grade Head Broker
Event: On the evening of January 13, CITIC Securities disclosed the 2019 performance report.
The performance of the short review was slightly lower than expected, and some net assets grew steadily.
In 2019, the company achieved operating income of 431.
77 trillion, ten years +16.
00%; net profit attributable to mother is 122.
880,000 yuan, +30 for ten years.
86%; estimated average ROE 7.
80%, ten years +1.
As of the end of 2019, the company’s total assets were 7,918.
04 trillion, +21 from the end of the previous year.
13%; 1616 attributable to parent shareholders.
8.5 billion, +5 from the end of the previous year.
58%; BVPS 13.
34 yuan / share, +5 over the end of last year.
Investment banking business + investment business continued to drive upward performance.
(1) Investment Banking Business: The primary market of the science and technology innovation board will continue to release its potential. According to Wind Statistics (listing date caliber), the company’s IPO / refinancing / debt underwriting amounts will be 453 in 2019.
49 trillion per year, respectively + 3555% / 29% / 17%.
(2) Investment business: The Shanghai Composite Index will gradually increase in 201922.
30%, the CSI All-Bond Index gradually increased4.
96%, stocks and bonds rose in size. The self-operated investment income was upward-keyed, and the science and technology board followed the investment to increase incremental earnings.
(3) Public offering management business: In 2019, the subsidiary Huaxia Fund realized operating income39.
7.7 billion, +6 in ten years.
53%, achieving a net profit of 12.
01 ten percent.
35%; As of the end of 2019, the size of the assets under management of the Huaxia Fund Headquarters was 10,321 trillion.
The performance of other subsidiaries was slightly lower than 四川耍耍网 expected.
Excluding the impact of the 2.5 billion subsidiaries’ dividends in the October monthly report, the company’s 2019 annual report’s net profit attributable to the parent is only 27 higher than the monthly net profit.
12 trillion, of which the fourth quarter performance report attributed to the mother’s net profit is lower than the monthly reported net profit3.
This means that the overall net profit performance of non-securities subsidiaries such as CITIC Securities International, Kingstone Investment, and CITIC Industrial Investment in the 2019 quarter was poor, resulting in the company’s performance slightly exceeding expectations.
”Clearance and reduction” CITIC Construction Investment has repeatedly appeared.
As of January 10, 2020, the time limit for the reduction of the centralized bidding 上海夜网论坛 transactions of this reduction plan expired, and the company gradually reduced its holding of CITIC Construction Investment to zero.
58% of shares, reducing the total amount of 8.
09 million yuan, the remaining holders of CITIC Construction Investment 5.01% stake.
The acquisition of Guangzhou Securities progressed smoothly.
The company issued shares to Yuexiu Financial Holdings to purchase decentralized Guangzhou futures, and the 100% equity of Guangzhou Securities after the equity of the Golden Eagle Fund has been reviewed and approved by the Securities and Futures Commission; Guangzhou Securities was approved to be renamed “CITIC Securities South China Co., Ltd.” and completed its holdings.Replacement of Guangzhou Futures and Golden Eagle Fund equity.
After the completion of the transaction, the number of CITIC Securities’ business outlets in the five provinces and regions of Guangdong, Guiqiong, Yunnan and Guizhou will increase from 21 to 59, which will help increase market share in South China; South China will serve as a regional landing platform for wealth management business, To strengthen the company’s high-net-worth customers in southern China to acquire customers.
Investment suggestion: Give “overweight” rating.
In 2020, the brokerage sector will continue to benefit from the catalysis of “loose liquidity” and “capital market reform”, with a high probability of rising performance and ROE.
Supervisors support the creation of aircraft carrier-grade securities brokers, promote the supply-side reform of the securities industry, increase capital strength (ranked No. 1 on the list of listed securities firms in 2019Q3 net assets), improve wind control (awarded AA rating from the CSRC for 3 consecutive years), and innovative capabilitiesOutstanding (underwriting of science and technology board + follow-up investment, derivative market making, wealth management expansion leading layout) CITIC Securities will be one of the first beneficiaries.
We expect CITIC Securities to have a BVPS of 14 in 2020-2021.
13 yuan and 15.
00 yuan, corresponding to the current expectations of 1.
84X PB and 1.
In view of the cracks in the company’s previous growth and the growth rate of the city’s net worth is close to the high point of the past three years, we lowered CITIC Securities (600030.
SH) to the “overweight” level.
Risk warning: Monetary policy shifts to tighten; capital market reforms stagnate.