Haitong Securities (600837): Self-operated business drags down company performance and diversification results

Haitong Securities (600837): Self-operated business drags down company performance and diversification results

Investment points: The company’s performance in 18 years is in line with expectations, and the performance in 19 years is expected to usher in an inflection point.

The net profit attributable to mothers in 2018 was 5.2 billion, a year-on-year increase of 40%. In the fourth quarter, the net profit in the fourth quarter was 1.6 billion, a chain + 192%, and the average average return on net assets was 4.

42%.

Subsidiaries realized revenue of 142.

8.3 billion, accounting for 55%; overseas business realized income 65.

9.3 billion, accounting for 28%.

The overall performance was in line with expectations. The 18Q4 performance improved markedly from the previous year. Net profit attributable to mothers was 5.2 billion, YOY-40%, and Q4 single-quarter net profit was 1.6 billion, + 192% from the previous quarter.

The preliminary performance indicators are mainly affected by self-operated performance, procedural fees and commission income substitution.

At the end of the period, shareholders’ equity attributable to the parent company was 117.9 billion yuan, YOY + 0.

09%, average average return on net assets is 4.

42%, a decrease of 3 from 17 years.

14 units.

Equity-based trading market share increased, overseas equity financing contributed incremental growth, and overall performance shifted. Interbank’s 18-year gradual transaction fee and net commission income was 85 million, an increase of 11% year-on-year.

1) Share-based trading market share 4.

74%, maintaining growth.

At the end of the period, the company had nearly 14 million customers at home and abroad.

The brokerage business program fee net income was 3 billion, YOY-24%, and the single quarter revenue in the fourth quarter was 600 million, which was -16% sequentially.

2) Equity financing in the stock market has been blocked. Equity financing in Hong Kong and the United States has become a highlight. Bond underwriting and M & A restructuring financial advisors have maintained their leadership.

Investment bank net income was 32 trillion, -3% year-on-year. In the fourth quarter, it was 13 trillion in a single quarter, + 253% month-on-month.

3) The net income of asset management is 190,000 yuan, which is -8% year-on-year. The subsidiary Haitong Asset Management has achieved double growth in revenue and net profit (+ 10% / 25%).

The self-operated business dragged down the company’s performance mainly due to a total of 35 trillion in investment and fair value changes, which was -65% year-on-year, mainly due to the decrease in investment income from disposal and holding of financial instruments and the impact 都市夜网 of changes in the capital market.

However, from the quarter-on-quarter basis, Q4 was + 72% month-on-month, contributing to the elasticity of performance.

The scale of Liangrong and stock pledge is relatively stable. The proportion of other business income increased to 28%. Net interest income in 18 years was 4.8 billion yuan, + 31% year-on-year, mainly due to the increase in interest income from financing leases.

At the end of the period, stock pledged repurchases of 55.6 billion yuan, a 25% decrease from the end of 17 years.

Liangrong’s balance was 34.7 billion yuan, a 28% decrease from the end of 2017.

At the end of the period, the accumulated credit impairment loss was 16 trillion, and Q4 was accrued 3 in a single quarter.

7.5 billion.

Other business income: Expected income of 67 ppm, an increase of 28 for the full year.

47%, mainly due to the increase in sales revenue of subsidiaries, which accounted for 28% of the company’s operating income in 2018, an increase of 10 percentage points from 17 years.

Investment suggestion: Both the policy environment and the market environment are improving. It is expected that the company’s performance in 19 is expected to usher in an inflection point.

The company’s integrated financial platform can provide strong support for business development.

According to the profit data disclosed in the annual report, the 19-20 year profit forecast was adjusted from 71/82 billion to 71/84 trillion.

The current net assets corresponding to 2019E are limited to 1.

22 times PB, maintaining the “overweight” rating.

Risk Warning: The policy implementation is less than expected, the performance of overseas subsidiaries is uncertain, and the growth plan is not as expected