Industrial Securities (601377) Half-yearly Report Review 2019: Credit, self-operated business contributed major performance growth
Credit and self-employed business contributed major performance growth.
In the first half of 2019, the company’s operating income was 70.
4.1 billion, +112 per year.
75%; net profit attributable to shareholders of the parent company13.
3.3 billion, +94 per year.
20%; net profit of non-attributed mothers is 12.
4.1 billion, +112 per year.
As of the end of the first 合肥夜网 half of 2019, the company’s total assets were 1,623.
2.2 billion yuan, +4 from the end of 2018.
63%; vested shareholders’ equity is 338.
7.9 billion yuan, +4 from the end of 2018.
At the end of the reporting period, the company’s equity multiplier (excluding customer margin) was 3.
80, a decrease of 0 from the end of 2018.
The company’s first half performance growth was mainly contributed by credit and self-operated business.
Credit business turned losses into profits.
In the first half of 2019, the company realized net interest income4.
4.4 billion yuan, net interest rate income for the same period in 2018 was -1.
The US $ 400 million credit business realized losses, mainly due to the increase in interest income from other bond investments, which should address the impact of bond index spending.
During the reporting period, the company’s interest rate income was 21.
8.3 billion, an increase of 2 every year.
3.4 billion US dollars, of which the investment income of other debt investment increased by 5.
5.3 billion; company interest expense 17.
3.9 billion, a decrease of 3 per year.
US $ 5 billion, of which interest rate payable on bonds decreased by 1.
1.3 billion yuan.
As of the end of June 2019, the company’s margin on margin financing and securities lending reached 143.
US $ 8.3 billion, an increase of 20% from the end of the previous year, which is basically the same as the industry growth; the company’s stock pledged for repurchase transactions amounted to US $ 16 billion, a 40% decrease from the end of the previous year.
During the reporting period, interest income from financing funds and interest income from equity pledged repurchases all declined.
Self-employed business income grows by 153 per year.
In the first half of 2019, the company realized income from self-operated business (investment income-investment income from associates and joint ventures + income from changes in fair value).
1.2 billion yuan per year + 153.
In the first half of 2019, the domestic stock market rebounded, the A-share index rose, the monetary policy remained relatively loose, the bond market range fluctuated in a narrow range, the stock index futures regulation was gradually loosened, the derivative transaction volume continued to improve, the company strengthened position management, and timely based on marketChange and adjust investment strategies to achieve good investment returns.
Net income from investment banking business decreased year-on-year.In the first half of 2019, the company achieved net income from investment banking fees2.
9.5 billion, a year -17.
00%; Net income from brokerage business procedure fees 8.
1.2 billion, +5 in ten years.
32%; Net income from asset management business process fees1.
4.8 billion yuan, +7 per year.
Investment proposal: As of August 28, 2019, the company’s PB is about 1.
22 times, at a historical low.
It is predicted that in 2019 and 2020, the EPS will be 0.
24 yuan, 0.
27 yuan, the closing price on August 28, 2019 corresponding to PE were 25.
50 times, 22.
67 times, giving the company a cautious recommendation level.
The economy exceeded expectations, the stock market fell sharply, and the Sino-US trade friction worsened.