Industrial Securities (601377): Self-operated investment income increased significantly, asset quality improved significantly

Industrial Securities (601377): Self-operated investment income increased significantly, asset quality improved significantly

This report reads: 19H1 company’s self-operated income and net income increase, is the main driving force for performance growth; the company continued to reduce the size of stock pledges, reduce risk significantly, credit improvement improved back, high-speed growth growth expected in the second half.

Investment Highlights: Maintain “Overweight” rating and maintain target price of 8.

63 yuan, corresponding to 19P / B1.

7 times.

The company’s revenue in 19H1 was 70 / net profit.

4/13.

10% for 3%, +113% / + 94 for one year.

2%, ROE 3.

99%, increase by 1 every year.

95 points; net assets attributable to mothers at the end of the period were 33.9 billion yuan, +4 earlier.

2%, in line with our expectations.

In the first half of the year, the company’s annual self-employment income and net interest increased significantly, leading to a significant improvement in performance; 19H1 management fee + 55% per year, the same growth rate as the main income replacing other income.

Maintain the company’s EPS forecast for 2019-21 to 0.

33/0.

37/0.

44 yuan.

The risk of downgrading the company’s stock pledge business is obvious, and the credit impairment improvement is reversed, which is significantly improved compared to 18H2. The high-growth performance growth in the second half of the year is expected to continue.

Institutional commissions maintained their advantages. Investment banks and asset management revenues fell slightly.

1) 19H1 company’s stock base turnover exceeded + 29%, which was the same as the market growth rate, in which the net income of securities business / trading seats / consignment products increased by +26% /-13% /-12%, and financial products were consignmentsThe income industry ranked fifth, and agency commissions accounted for 29% of the net income of securities brokers.

2) 19H1 investment bank’s net income is -17%, and it is expected that the shareholding income will 四川耍耍网 decrease. In July, the company sponsored Fuguang Co., Ltd. to list the science and technology board, and the subsequent IPO of the science and technology board accelerated the investment bank’s income improvement.

3) The company ‘s asset management business / fund management net income increased by +8% /-32% respectively, and the total asset management scale of Xingquan Fund was + 21%, and performance compensation income declined.

The self-employed income and interest rate net income greatly increase every year.

1) 19H1 company’s self-operated income (including gains and losses from changes in fair value) 23.

900 million, + 126% every year. The good performance of the stock market drove the company’s investment income.

2) At the end of the period, the company’s two-finance surplus was 14.4 billion, an earlier + 20%, 武汉夜网论坛 which was basically the same as the industry growth rate; stock pledges continued to shrink in size, -40% to 16 billion earlier, and the company’s overall leverage ratio decreased slightly.

Without considering the impact of changes in accounting policies, the adjusted 19H1 interest net income was -1.

100 million, increasing by 0 every year.

3 billion, expected spread expansion.