CITIC Securities (600030): Investment Bank + Investment Margin Profit Increases As Scheduled

Steady revenue, leading investment bank and structural adjustment.

In Q1 2019, the company realized a net profit of 4.3 billion yuan (YoY + 58%), 北京夜生活网 operating income of 10.5 billion yuan (YoY + 8%), and EPS 0.

35 yuan / share, ROE 2.

74% (+0 year-on-year.

96pt), adjusted leverage ratio 2.

28 times.

  In the first quarter of 2019, investment income, brokerage business, asset management business, investment banking business, and index revenue contributed 48% (+23 points YoY) / 19% (+3 Points YoY) / 12% (+3 Points YoY) / 9% (+2 points YoY)) / 5% (YoY-2pt).

  The investment banking business continued to lead, and the proportion of revenue from self-operated business increased.

  1) According to the report, according to Feng caliber company, the main underwriting amount of equity financing was 77.8 billion yuan, + 57% year-on-year, and the market share was 12%, ranking first in the market; the main underwriting amount of debt financing was 1,540 trillion, + 51% year-on-year, ranking second in the market.

The company’s investment banking business net income was nearly 1 billion yuan, an increase of 34% year-on-year.

  2) Investment elasticity amplifies the results of the bull market.

Reported that first-class companies achieved self-employment revenue of 4.9 billion, an increase of 106% year-on-year.

  3) As the company’s brokerage business is known for its institutional clients, the transaction flexibility is reduced, and the timing of the receipt of different warehouses is different. Therefore, the transformation of Q1’s brokerage business has increased rapidly with the market, achieving a net fee income of 1.9 billion yuan, which is -9% year-on-year.

  4) The scale of credit business increased slightly, and the market rebounded to reduce the pressure of impairment.

The book value of the company’s capital raised in 2019Q1 was 64 billion, a year-on-year increase of + 12%; the book value of assets under resale agreements was 57 billion, a year-on-year decrease of -15%, and the credit of the reversal credit was 16.21 million.

The reported company achieved a net interest income of 5 trillion, -18% year-on-year.


2x P / B acquisition of Guangzhou Securities, which continues to expand and supplement Qi’s shortcomings.

CITIC Securities will issue 100% equity of Guangzhou Securities to Guangzhou Yuexiu Financial Holdings for P / B1.

2; Release Expected 16.

97 yuan / share, total issuance 7.

900 million shares.

After the acquisition of Guangzhou Securities, CITIC will make up for the shortcomings in the business in the southern region, achieve resource integration, combine the front-end customer resources of Guangzhou Securities with CITIC Securities’ advantageous businesses, and promote the transformation of wealth management across the country, thereby creating conditions to accelerate growth in a cyclical manner.

  Ascending cycle adds market-oriented genes, and development enters a new stage.

The company plans to set up an employee shareholding plan, and purchase A or H shares of the company not exceeding 10% of the total share capital in the secondary market through a trust institution as an equity incentive for employees.

The implementation of a large-scale employee stock ownership plan during the industry’s rising cycle not only demonstrates the company’s confidence in future development, but also effectively binds core employees to improve operational efficiency and profitability.

  With the reform of the financial supply side and the opening of the direct financing market, leading brokerages that have injected market vitality will take the lead to continue to grow bigger and stronger; in the future of financial expansion and opening up, CITIC Securities is expected to become an internationally influential investment bank.
The current forecast of CITIC Securities P / B 2019 and 2020 are 1, respectively.

7, 1.

6. Continue to maintain the recommended level.

  Risk Warning: The policy advances less than expected, and the market fluctuates greatly.