Orient Securities (600958) 2018 Annual Report Comment: Featured Asset Management Leads Interbank Performance Fluctuations in Accordance with Expectations + 2019 Squats Set Off
The event company announced the 2018 annual report and realized operating income of 103.
3.0 billion, down 2 every year.
%, previous market, in line with expectations; net profit attributable to mother 12.
31 trillion, down 65 a year.
36%, mainly due to the decrease in self-operating equity investment income, the new accounting is prepared to implement changes in performance, and the cost of bulk commodity sales of subsidiaries has increased significantly.
Deduct non-attributed mother’s profit 11.
79 trillion, down 64 a year.
EPS is 0.
18 yuan / share, down 68 each year.
42%, with an expected ROE of 2.
37%, a decrease of 6 from the previous year.
In the fourth quarter, the company realized operating income.
38 ppm, an increase of 7 per year.
63%, an increase of 63.
37%, mainly due to the increase in net interest income and the increase in subsidiary commodity income;
2.7 billion, an increase of 73.
94%, down 64 each year.
65%, mainly due to the increase in the cost of bulk commodity sales of subsidiaries led to a substantial increase in operating costs.
EPS in the fourth quarter was 0.
05 yuan, down 61 previously.
54%, an increase of 66 from the previous month.
67%; ROE is 0.
63%, down by 1 every year.
32pct, an increase of 0 from the previous month.
Investment Points 1.
Asset management business grew steadily, and equity investment dragged down performance. The company’s asset management business revenue in 201823.
80 ppm, an increase of 20 in ten years.
38%, continued to maintain growth; index net income 8.
710,000 yuan, an increase of 28 from the previous year.
US $ 8.1 billion, turning losses into profits, is mainly because the debt investment and other debt investment indexes after the implementation of the new financial instrument measures are included in income, excluding the influence of index adjustment factors, and net interest income is -18.
5.7 billion, an increase of 1 every year.
US $ 5.4 billion, mainly due to the reduction in bond interest rate expenditure; other business income37.
99 ppm, a significant increase of 744 per year.
Investment income 25.9.3 billion, down 53 a year.
09%, mainly because after the implementation of the new financial instrument specification, the debt investment and other debt investment interest is included in interest income, excluding the impact of pricing adjustment factors, investment income53.
21 ppm, a decrease of 3 per year.
74%, the first is the decrease in investment income from disposal of transactional financial assets, which decreases by 100% every year, which seriously drags down performance, excluding the impact of regulatory adjustment factors, and investment income53.
21 ppm, a decrease of 3 per year.
74%, the first is the decrease in investment income from disposal of transactional financial assets.
Investment banking business and brokerage business respectively achieved operating income11.
3.6 billion, 13.
5.2 billion, down 14 each year.
In the fourth quarter, the brokerage business and investment banking business achieved revenue.
3 billion, 3.
52 trillion, an improvement from the previous quarter, with an overall net income of 21.
51 ppm, a substantial increase; revenue from asset management business4.
09 trillion, a slight decrease from the previous quarter, the self-operated business achieved revenue of -13,48 trillion, a significant decrease from the previous quarter, dragging down performance.
Asset management business grows steadily, characteristic asset management leads the industry. Asset management of the company is characterized by active management, and business revenue in 2018 has been extended by 20%.
As of the end of 2018, the scale of the management of the entrusted assets of TSE Asset Management was 2001.
44 trillion, of which active management accounted for 98%.
50%, far exceeding the average level of the asset management industry of securities companies.
According to company disclosures, reports tend to rank first in the industry’s net income in the asset management business of trustee asset management.
Top Securities Asset Management Equity Fund has an absolute yield of nearly three years, with an excess yield of 14 respectively.
65%, ranking first in the industry, maintaining a leading position in mid- and long-term performance.
As of the end of 2018, the company’s affiliated Huitianfu Fund managed a public offering of RMB 4,628.
0.74 million yuan, an increase of 43 from the beginning of the year.
The scale of active equity management is RMB747.
3 billion, ranking first in the industry.
The growth of equity investment fell in line with expectations, excluding the impact of accounting standards. Investment income in 2018 was 53.
21 ppm, a decrease of 3 per year.
74%, a smaller decrease.
Gains from changes in fair value-19.
31 trillion, down 214 a year.
48%, mainly due to the Sino-US trade war and other factors, the stock market fell severely.
In the transformation of the brokerage business, the increase in the proportion of institutional custody assets increased in 2018, and the company’s brokerage business revenue decreased by 8 year-on-year.15%, previous industry average.
As of 北京夜网 the end of 2018, the company had 4,937 institutional customers, an increase of 1 each year.
27%; the total assets under custody of institutional customers at the end of the period was RMB 3439.
74 ppm, a ten-year increase of 8.
5%; the client’s custody assets accounted for 77 of the company’s brokerage business client assets.
13%, an increase of 19 a year.
The increase in corporate institutional business volume will reduce the volatility of brokerage business income.
The asset quality is improving, and the investment bank business can expect the company’s stock pledged repurchase size to be 240.
940 thousand yuan, the balance of repurchase financial assets impairment reserve8.
34 trillion, accounting for 3.
46%, fully prepared.
With the recovery of the secondary market, the company’s stock pledge risk has been reduced, asset quality has improved, and the earlier period of impairment preparations has been pushed back.
According to wind statistics, in 2018, the company’s lead underwriting amount was 768.
01 billion, down 5 every year.
29%, ranking 22nd, with great development potential, and then launched through the science and technology board, the company strives to enjoy the dividends of the science and technology board reform.
Capital increase in TOPIX futures, business expansion is promising On March 21, Orient Securities Co., Ltd. completed adding RMB 300 million to Shanghai TOPIX Futures Co., Ltd. to enhance the overall competitiveness of TOPIX Futures, expand the scale of investment and operation, and expand business channelsTo enhance the liquidity of trade business funds.
In 2018, the number of TOPIX futures institutional clients was 48,049, an increase of 20 per year.
31%, completed the agent trading volume of 263.
36 million hands, an increase of 30 in ten years.
89%, with a transaction value of RMB 175,024.
1.8 billion, an annual increase of 34.
The business scale of the risk management subsidiary under TOECOM Futures has developed rapidly, with operating income several times more than sevenfold.
TOPIX Futures maintains rapid development. After the capital increase, futures business development will be promising.
Estimation and investment recommendations Investment and asset management are the core business indicators of Orient Securities. The investment management business leads the way, forming a substitute brand effect.
We are optimistic about the development strategy for 2018-2020, and strive to achieve the goal of entering the top ten of the industry in all major business indicators, and some of our advantageous businesses and innovative businesses to stay in the top five of the industry.The development prospect of the modern investment bank of financial services “.
We think that the company’s investment and asset management business will grow rapidly in 2019, leading the industry, with better flexibility in the allocation of targets. It is expected that the EPS for 2018-2020 will be 0.
46 yuan, the corresponding PE is 38.
00 times, maintaining the “recommended” level for the company.
Risk reminders: China-US trade friction fluctuation risk; market drops sharply; performance is less than expected risk; macroeconomic downside risk.