CITIC Securities (600030) 2019 Third Quarterly Report Review: Investment Bank Performance Boosts Comprehensively Launching Wealth Management Transformation
Event: CITIC Securities disclosed the third quarter report of 2019, and the company realized operating income of 327 from January to September.
74 trillion, +20 for ten years.
45%; net profit attributable to mother 105.
22 trillion, +43 a year.
The best average ROE is 6.
68%, an increase of 1 over the same period last year.
Comment: Ready to transform into wealth management.
The average daily trading volume of the Shanghai and Shenzhen stock exchanges in 2019Q3 was 50.28 million yuan, a year-on-year increase of 47%.
Net income from brokerage fees of CITIC Securities in the third quarter of 201919.
40,000 yuan, an annual increase of 10%, an increase of 3%.
The brokerage business has shrunk significantly, and the annual growth rate far exceeds the average transaction volume of the industry as a whole. It is expected that the market share of the brokerage business will fall somewhat, which is in line with the company’s development strategy of comprehensive transformation 杭州桑拿 to wealth management in the second half of this year.
CITIC Securities has a higher percentage of institutional customers than its peers and has a significant advantage in changing trends.
Science and technology projects have abundant reserves, and investment banking business has grown significantly and steadily.
Net income of the company’s securities underwriting business in Q3 201911.
7.7 billion, a year-on-year increase of 73%, and a quarter-on-quarter increase of 44%.
Since the beginning of this year, CITIC Securities has completed 22 IPOs (10 in the same period last year) and 21 additional IPOs (24 in the same period last year). The number of IPOs ranks first in the industry.
In terms of amount, the IPO gradually raised 276.
US $ 3.8 billion, a sharp increase of 140% previously; underwriting of corporate bonds + corporate bonds was 1,637.
04 trillion, an increase of 54% in ten years.
CITIC Securities has participated in 5 IPOs of the science and technology board, and has served as the sponsor of 11 science and technology board companies, ranking fourth among all securities firms. At present, the science and technology board and the floating profit total 2.
5 billion, ranking first.
Investment income has steadily increased.
The company achieved net income from asset management business in Q3 201914.
34 trillion, a year-on-year increase of 17%, a month-on-month increase of 5%.
The company reports overall net investment income (including changes in fair value) 46.
US $ 5.3 billion, with an annual growth rate of 227% and a 95% increase from the previous quarter, which includes the investment surplus of direct investment subsidiaries in the science and technology board.
The company is still shrinking the property rights pledge business, cleaning up the existing business to prevent risks, and continued to accrue credit impairment in the third quarter.
03 trillion, accumulatively accumulate 7 from January to September.
At the end of the reporting period, the scale of the company’s financial investment assets reached 338.5 billion yuan, an increase of 13% over the beginning of the year, of which transactional financial assets accounted for 86% of the total scale, mainly due to the increase in the scale of bond investment, an increase of 18% over the beginning of the year.
At the end of the first half of 2019, the company’s asset management scale was 12,969.
1.3 billion, a decrease of 3% compared with the end of last year, of which the scale of active management was 5,631.
1.1 billion, an increase of 1 over the end of last year.
The company reduced the scale of its channel business in an orderly manner and enhanced its proactive management capabilities.
Investment suggestion: Despite the weak growth of the brokerage business, it still maintains the inherent advantages of each business sector. The transformation of wealth management is an inevitable trend. Leading securities firms will benefit first, and the transformation is in line with the business structure of CITIC Securities. On October 30, 2019, the China Securities Regulatory Commission unconditionally merged and reorganized 100% of Guangzhou Securities through CITIC Securities by issuing shares to purchase assets.
The merger will improve CITIC Securities’ weakness in regional network layout, and more importantly, benefit from the financial policies of the Greater Bay Area to help develop.
We expect the CITIC Securities EPS to be 1 in 2019-2021.
63 yuan (the original predictor 1).
56 yuan), BPS is 13.
05 yuan, the corresponding PB is 1.
36, ROE is 8.
54% / 9.
52% / 10.
We maintain a PB estimate of 2x 2019 results, with a target price of 28 yuan, and maintain a “recommended” rating.
Risk warning: Sino-US trade frictions are repeated, downward economic pressure is increasing, and financial supervision is becoming stricter.