China Galaxy (601881): Brokerage to consolidate its strengths to boost self-employment and stimulate high performance
The company achieved operating income of 120 million US dollars in the first three quarters of 2019, a year-on-year increase of 90%, and net profit attributable to mothers was 3.9 billion US dollars, an increase of 107% year-on-year.The average return on net assets was 6%, which was + 3pct over the same period of the previous year. At the end of the third quarter of 2019, the 四川耍耍网 net assets attributable to the mother was 69.5 billion yuan, an increase of 5% from the end of the previous year.
The brokerage business remained strong, supporting the high growth of the group’s performance.
In the third quarter of 2019, the company’s brokerage business program fee net income was US $ 1.2 billion, a year-on-year increase of 51%, and the increase in the first three quarters was US $ 3.6 billion, an annual increase of 31%. After excluding other business income, it accounted for 34%.An important cause of increase.
At the end of the third quarter, the company’s settlement reserves and agency securities balances were US $ 14.6 billion and US $ 79.5 billion, respectively, an increase of 15% and 40% over the end of 18 years. The client base of the brokerage business is huge, and its solid scale advantage provides important support for performance.
The performance of investment banking business has improved remarkably, and debt underwriting of innovative startups has been outstanding.
In the third quarter of 2019, the company’s investment banking business fee net income was 2 million US dollars, an increase of 73% in the future. The first three quarters increased by 400 million US dollars, and gradually decreased by 4%. After excluding other business income, it accounted for 4%.The overall release of performance was significantly improved compared with the first half.
In terms of equity financing, the company’s raised capital increased by US $ 6.6 billion in the first three quarters, and it served as the four lead underwriters, ranking 19th. In bond financing, the company raised 57.5 billion funds in the first three quarters, ranking 21st, of whichThe amount and amount of bonds underwritten by innovation and startup companies both ranked in the top 5.
The performance of the asset management business fluctuated slightly, and the transition will take time.
In the third quarter of 2019, the company’s net asset management business fee net income was US $ 200 million, a year-on-year decrease of 14%, and the first three quarters increased by US $ 500 million, a year-on-year decrease of 15%. After excluding other business income, it accounted for only 5%.
As of the end of the second quarter, the company’s average monthly private asset management reached 237.8 billion yuan, ranking 12th. Among them, the average monthly active asset management scale of private equity was 786 trillion, ranking 16th. The company improved the level of investment management and comprehensively transformed active managementSuccess still takes time.
The self-operated business turned losses into profits, and bond investment was the first.
In the third quarter of 2019, the company’s self-operated business revenue was 1.2 billion US dollars, an increase of 946% year-on-year, and it increased by 34 trillion in the first three quarters. It was -1 euros in the same period of last year, an increase of 35 trillion. After excluding other business income, the revenue accounted for 32%.
As of the end of the third quarter, the company’s trading financial assets balance was 71.9 billion yuan, an increase of 19% over the end of 18 years.
Since 19 years, the company has been actively optimizing asset allocation, converting equity investment ideas, and increasing bond investment to track macroeconomic variables.
Credit business improved during the period, and Liangrong’s business maintained growth.
The company’s net interest income for the third quarter of 2019 was US $ 9 trillion, an increase of 3% over the previous year, an increase of US $ 2.5 billion in the first three quarters, a decrease of 4%, and 24% after excluding other business income.
As of the end of the third quarter, the company’s balance of financial assets purchased under resale was 348 trillion, a decrease of 13% compared with the end of the previous 18 years; the company’s third-quarter financing balance was US $ 53.8 billion, an increase of 22% from the end of the previous 18 years, and the growth rate was higher than the first halfThe promotion of 1pct benefited from the company’s vigorous development of securities lending business and accelerated fintech application.
Profit forecast: We estimate that the company’s net profit attributable to the parent will be US $ 5.9 billion, US $ 6.5 billion and US $ 7.6 billion in 2019-2021, which will increase by 103%, 11%, and 18% each year, and the corresponding EPS will be 0.
Risk reminders: Macroeconomic downturn, Sino-US trade relations continue to deteriorate, and stock markets fluctuate sharply.