Soochow Securities (601555) first half of 2019 performance review: self-operated elastic release of net profit increased significantly

The company’s net profit exceeded the growth rate and temporarily ranked first among listed securities companies.

In the first half of 2019, the company’s operating income was 26.

$ 7.5 billion, +74 per year.

17%; net profit attributable to mother is 7.

5 billion yuan, +2758 per year.

33%; net profit after deducting non-attribution is 7.

4.8 billion yuan, +3613 per year.

28%, the 青岛夜网 company’s net profit quality is excellent.

The growth of the company’s net profit was mainly contributed by credit business, investment income and brokerage business.

The growth rate of the brokerage business exceeded the overall industry.

In the first half of 2019, the company continued to focus on the general principle of “strong headquarters, strong command, strong products, and cost reduction”, optimizing the service system, strengthening the product system, improving the operating system, improving the compensation and assessment incentives, and steadily promoting the transformation of the brokerage business.And development.

In the first half of the year, the company’s net income from trading in securities business was 5.

5.4 billion, +25 per year.

94%, higher than the overall growth rate of the industry22.

06%, during the period, the agency transaction volume (A shares + funds) was 18,027.

9.3 billion, an annual increase of 36.

65%.

The growth rate of investment banking business was lower than the industry as a whole.

The establishment of the Science and Technology Innovation Board and the trial registration system brought new development potential to the investment banking business.

The company takes advantage of the clustering of science and technology enterprises in the Yangtze River Delta region, establishes a science and technology enterprise project resource bank, strengthens the science and technology board project reserve, and helps science and technology enterprise development.

In the first half of 2019, the company successfully completed the Hongta Securities IPO project and raised funds12.

The Bank of Suzhou, which was co-sponsored, was listed on the Shenzhen Stock Exchange on August 2 and raised funds of 26.

2 trillion; in the first half of the year, the company took the lead in obtaining business qualifications for performing credit protection instruments and successfully created the country’s first batch of double-creation debt credit protection instruments.

In the first half of the year, the company completed the issuance of 4 single and double creation bonds and the nation’s first single steel company supply chain ABS, completed 34 corporate bonds and raised 369 funds.

7.6 billion yuan.

In the first half of the year, the company’s securities underwriting and sponsorship business net income2.

3.7 billion, +4 per year.

82%, the growth rate is lower than the overall growth rate of the industry26.

66%.

Self-employed business has increased significantly every year.

In terms of equity securities investment, the securities market performed well in the first half of 2019. The company’s equity investment business accurately grasped market trends, and in-depth excavation of value-chips with strong anti-risk capabilities in areas such as large finance and large consumption, and achieved relatively stable overallReturn on investment.

For fixed-income securities, the bond market trend in the first half of the year was affected by internal and external factors, and the overall amplitude fluctuated. The corporate bond investment business focused on risk prevention, and traded closely following changes in interest rates and debt to stabilize investment income.

In the first half of the year, the company’s net investment income (net investment income-investment income to associates and joint ventures + fair value changes) was 9.

It reached $ 8.7 billion in 1985.

twenty three%.

The decline in asset management business was lower than the industry as a whole.

With the new regulations on asset management, regulatory policies such as the bank’s wealth management subsidiaries have been implemented, transforming and actively managing the future development of the business.

Since 2019, the company has strengthened its high-net-worth customers and institutions to develop customized products, while maintaining its inventory, and focusing on private placement of FOF and bond fixed income products.At the end of June 2019, the total scale of the company’s entrusted management was 1,253.

7.3 billion, down 30 a year.

06%, of which, the proportion of the company’s asset management business initiative management scale increased to 24 on June 30, 2019.

54%, the active management capacity has been steadily improved.

The company conducts fund management business through its holding subsidiary Soochow Fund. As of the end of June 2019, the total assets managed by Soochow Fund were 688.

2.4 billion yuan, of which the size of public funds is 172.

6.5 billion yuan, the size of the special account assets is 485.

4.2 billion yuan, the subsidiary’s special assets scale 30.

1.7 billion.

In the first half of 2019, the company’s net income from the client’s asset management business was zero.

8.5 billion per year -3.

06%, lower than the industry’s overall -8.

32%.

Credit business turned losses into profits.

In the first half of 2019, through the market recovery and the gradual improvement of corporate credit, the credit risk of the securities industry’s stock pledge and margin trading business was effectively alleviated.

In the first half of 2019, the scale of the company’s credit transaction business gradually decreased, and the average performance guarantee ratio of self-owned stock pledges continued to increase.

As of the end of June 2019, the total size of credit transaction business was 191.

USD 7.9 billion, of which 97 is the balance of margin financing and securities lending business.

7 trillion, the balance of stock pledge business 93.

USD 7.5 billion with a contracted repurchase business balance of 0.

3.4 billion.

In the first half of the year, the company achieved net interest income2.

0.6 billion, net interest income for the same period in 2018 was -3.

4.3 billion yuan, turning losses into profits.

Investment Advice.

The company’s net profit attributable to its mother in the first half of 2019 is +2758 per year.

33%, in addition to the low base in the same period last year, credit business, investment income and brokerage business contributed to the growth rate of net profit attributable to mothers.Increase in the first half of the year.

As of August 16, 2019, the company’s PB was 1.

32 times, the highest level in history; the company’s EPS in 2019/2020 is expected to be 0.

61 yuan / 0.

71 yuan, the corresponding closing price PE on August 16, 2019 were 14 respectively.

90 times / 12.

80 times, we give a recommendation rating.

risk warning.

The economy exceeded expectations, the stock market fell sharply, and the Sino-US trade friction worsened.