China Merchants Securities (600999): Business Structure Optimization in Performance Integration Industry

China Merchants Securities (600999): Business Structure Optimization in Performance Integration Industry

Event: The company disclosed its 2018 annual report and achieved 113 revenue.

200 million, a decrease of 15 previously.

2%, net profit attributable to mother is 44.

300 million, a decrease of 23 per year.

5%, revenue and net profit growth were significantly better than the industry, in line with expectations.

The nominal ROE for the reporting period was 5.

5%, 2 less than the previous year.

8pc, the net assets at the end of the period was 80.7 billion.

After replacing other business income, the company’s brokerage, investment bank, asset management, index, and self-employment income accounted for 27 in the reporting period, respectively.

9%, 12.

8%, 10.

6%, 16.

3%, 26.


  Brokerage business retail, institutions grasp both hands, the main brokerage business leader.

In 2018, the company realized net income from securities trading business31.

500 million, down 21 a year.

8%, ranking 7th in the industry. The competition for stock investment brokerage business has expanded, and the market share of account opening has gradually expanded.

57%, ranking first in the industry.

The leading level of the main brokerage business is solid, with a market share of managed private equity products26.

5%, the number of private placement products, scale and number of public offering products in the industry for the fifth consecutive year ranked first in the industry; 18 years of WOFE custody expansion products, the number one market share industry, the main brokerage business comprehensive service system continued to improve.

  The investment bank business’s IPO market share increased, and bond underwriting remained the top three in the industry.

The company’s IPO underwriting volume in 2007 was 7.9 billion, with a market share of 5.

7%, increase by 1 every year.

5 points.

In terms of bond underwriting, ABS contributed half of the debt underwriting: the size of bond underwriting in 2018 was 463.1 billion US dollars, an increase of 13%, ranking third in the industry, of which ABS underwriting amount of 2328 trillion, market share reached 13.

6%, ranking second in the industry; the underwriting scale of corporate bonds is US $ 6.8 billion, an annual increase of 77%.

  The scale of active management has been significantly improved, and the asset management structure has been continuously optimized.

At the end of 18, the scale of asset management was 713.5 billion yuan, a decrease of 8 from the end of 17 years.

4%, of which, the scale of active management was 23.13 million yuan, an increase of 82% compared with the end of 17; the income from the asset management of China Securities Exchange was 12.

300 million, an annual increase of 8.

2%, net profit 6.

7 billion, the previous decade 7.


In addition, the company holds 49% equity of Boshi Fund and 45% equity of China Merchants Fund, and reports net profit of 9 respectively.

0 billion, 8.

900 million each year -3.

8% and +11.3%.

  The scale of credit business was reduced, the overall risk was controllable, and the average performance guarantee ratio of self-owned funds business exceeded 250%.

At the end of the period, 43 billion yuan of funds were raised and 33 billion yuan of financial assets were repurchased. At the end of the period, the scale of credit business accounted for 94% of net assets.

1%, 26 earlier.

1pct; At the end of 18, the company’s overall maintenance guarantee ratio was 268%; stock repurchase was 228% from profitable financials, and the overall performance protection ratio was 255%; the overall risk of margin financing and stock lending and stock pledge was controllable.

  The scale of self-operated investment increased significantly.

At the end of the period, the trading financial assets, other debt investment, other equity instrument investment scale and debt investment were respectively US $ 101 billion, US $ 41.6 billion, and US $ 6.7 billion, with a total size of US $ 148.5 billion, accounting for 184% of the net assets.Early trading financial assets plus the alleged sale of financial assets as a proportion of net assets increased by 30pct.

The company has the qualification of a first-tier dealer in OTC budget business, with a nominal principal of equity derivatives at the end of the year 111.

6 trillion, the scale remains stable.

The company’s self-operated income in 18 years (excluding the 西安耍耍网 investment income from joint ventures) 21.

1 ‰, a ten-year average of 26.


  Maintaining the “overweight” level, the overall performance of each business line was better than that of the industry in 18 years. It is planned to raise 15 billion US dollars for the rights issue, mainly for diversified business layouts. After the capital strength is improved, the long-term business structure will be more balanced.

According to the annual report data, we slightly adjusted the company’s profit forecast, and the company is expected to return its net profit to its mother in 2019-2162.

100 million, 82.

700 million, 94.

200 million (originally expected to be 61 in 2019-2020.

9, 82.

(US $ 600 million, with a profit forecast for 2021), which will increase by 40 each year.

5%, 33.

0%, 13.

9%, the current closing price 南京夜网论坛 corresponding to PE in 2019-21 is 18 times, 13 times, 12 times.