Guotai Junan (601211): Significant improvement in performance driven by growth in investment business and reversal of asset impairment
The 1Q19 results were in line with expectations. Guotai Junan announced the 1Q19 results: operating income.
杭州夜网论坛 Billion, a ten-year increase of 7.
2%; net profit attributable to mother 30.
100 million, an annual increase of 33% (excluding the 18-year transfer of Guolian’an equity gains, an annual increase of 69%).
The average ROE during the reporting period +0.
5ppt to 2.
In addition, total assets increased by 13 compared with the beginning of the year.
8% to 49.69 million yuan, the net assets attributable to mothers increased earlier3.
2% to 1,274 trillion, own leverage +0.
15x to 3.
Development Trends Significant growth in investment business and significant writeback of asset impairment are the main reasons for the improvement in performance; however, as the brokerage business improves with the market, asset management and investment banks are still down.
Investment income increased by 15% per annum / 7.
2 times to 23.
US $ 300 million, excluding the income from the transfer of Guolian Security during the same period of the year, an actual annual increase of 72%; the annualized return on investment of corresponding financial assets is 6.
In addition, the size of financial assets increased by 9 compared with the beginning of the year.
5%, or mainly due to the increase in the size and value of equity.
Brokerage income increased by 10% per year / 74% from the previous quarter to 15.
300 million (vs.
The market transaction volume has increased by 21% per year / 70% from the previous quarter.) It can be seen that the commission rate and market share show a trend of marginal stabilization.
Net interest income was basically flat at 14.
500 million (money-on-month or mainly due to the change in the accounting confirmation of interest income at the end of last year).
Among them: 1) Interest rate income decreased by 9% to 29.
800 million, of which the parent company represented by Liangrong raised funds for two years -29% / mom + 25% to 51.9 billion
6%), repurchase financial assets represented by stock quality for ten years -53% / money chain-21% to 48.3 billion US dollars.
2) Interest rate expenditure is reduced by 16% to 15 per year.
300 million, the cost of capital fell significantly.
In addition, the stock market picked up in 1Q19 and the combined company prudently accrued the two financial and stock impairments for 18 years. The current impairment was reversed by 3.
700 million, accounting for the total profit?
Investment banks and asset management continued to be under pressure.
Investment bank income is -15% per annum / -34% to 3%.
800 million, the stock and bond underwriting market share was 3 respectively.
1% / 2.
9%; asset management revenue was previously -21% / QoQ-3% to 3.
The profit forecast remains unchanged at 101 trillion / 110 trillion in 2019 / 20e.
Estimates 上海夜网论坛and recommendations Guotai Junan-A / H meets 1/19.
0x P / B.
Maintain A-share recommended rating and target price of 24.
4 yuan, corresponding to 1 in 19 years.
6x P / B and 26% upside; maintain H-share neutral rating but lower target price by 12% to 19.
1 Hong Kong dollar, mainly considering the completion of the H share placement and its issue price on the estimated hub, corresponding to 19 years 1.
1x P / B and 15% space.
Risk stock market activity decreased; stock and bond markets increased significantly; market reform progress exceeded expectations.