China Merchants Securities (600999) company regular report comment: 18 years of performance restructuring interbank supplementary capital will help business transformation

China Merchants Securities (600999) company regular report comment: 18 years of performance restructuring interbank supplementary capital will help business transformation

The initial return to performance was attributed to the 18-year increase in program fee and commission income and net interest income to the parent’s net profit of 4.4 billion yuan, an increase of 24% year-on-year.

The initial performance return is due to a decrease in litigation fees and commission income and net interest income (replacement of accounting plan adjustments affect the actual -65%).

At the end of the period, the shareholders’ equity attributable to the parent company was 8.07 million yuan, a year-on-year increase of 1.

88%, average average return on equity is 5.

58%, a decrease of 2 from 17 years.

81 units.

The net income of agency trading continued to be stable, and the asset management business grew steadily over the past 18 years. The net fee and commission income was 6.4 billion yuan, YOY-19%.

1) The net income of the securities business of agency trading is ranked seventh, which is the same as in 17 years, and the commission rate is 33.5, so the industry average (0.

0328%).

Brokerage business procedure fee net income was 3.2 billion, a year-on-year increase of 22%. In the fourth quarter, the single-quarter income was 600 million, a quarter-on-quarter.

2) Affected by the scale of equity financing (IPO + refinancing raised 18.1 billion yuan, YOY-49%), investment bank net income14.

460,000 yuan, an increase of 34% year-on-year, 4 in the fourth quarter.

200 million, -5% from the previous quarter.

3) The net income of asset management was 120,000 yuan, a year-on-year increase of 5%, and the fourth quarter was 5.

3.5 billion, + 100% MoM.

At the end of the period, China Merchants Asset Management actively managed a scale of 2313 trillion, a year-on-year increase of + 82%, and its structure was greatly optimized.

The self-operated business is expected to obtain positive income, which is attributed to the fixed-income self-operated investment business income for 18 years.

Among them, net investment income was 3.7 billion yuan, a year-on-year increase of 36%.

Net income from changes in fair value-6.

4.2 billion.

Mainly due to the increase in the company’s fixed income self-investment business income.

The size of Liangrong and stock pledges is relatively stable for 18 years and net interest income18.

46 ‰, a year-on-year increase of + 3%, mainly due to changes in the presentation method notified by the Ministry of Finance. In 2018, interest income from debt 南京夜网 investments and other debt investments (totaling US $ 1.2 billion) will affect the actual -65% of accounting estimates.

The balance of the stock pledged repo business to be repurchased is 38.8 billion, and the overall performance guarantee ratio is 220%, of which the balance of self-funded capital contribution is 22.8 billion, and the overall performance guarantee ratio is 255%.

The balance of Liangrong was US $ 38.7 billion, a 29% decrease from the end of 2017, and the overall maintenance guarantee ratio was 268%, with a market share of 5.

12%.

Cumulative credit impairment losses at the end of the period1.

21 ppm, Q4 accrues 0 in a single season.

2.4 billion.

Overall view: Both the policy environment and the market environment can be improved. It is expected that the company’s performance in 19 is expected to usher 四川耍耍网 in an inflection point.

The company is actively promoting stock repurchase programs for equity incentives (share stocks) or employee shareholding plans; it is planned to raise funds not more than 15 billion US dollars through a rights issue to seize the important development potential of the industry.

According to the profit data disclosed in the annual report, the 19-20 year profit forecast was adjusted from 54/62 million to 58/65 million.

Maintain the “overweight” rating.

Risk reminder: the policy falls below expectations; market risk risks; the risk of the company’s repurchase plan and rights issue plan being suspended, suspended or cancelled