CITIC Securities (600030) Annual Report Commentary: Leading Mergers Solidify Future Development
Event: The company achieved operating income of 372 in 2018.
21 trillion, an average of 14 in ten years.
02%, achieving net profit of 93%.
90ppm, ten years average 17.
87%; total assets 6531.
US $ 3.3 billion, an increase of 4 from the end of the previous year.
41%, the net assets of the mother 1531.
4.1 billion yuan, an increase of 2.
Investment points: The overall leader is solid and the competitive advantage is obvious: Due to the weak market performance, the company’s performance has fluctuated slightly. It is mainly dragged down by self-employed, investment banking and brokerage businesses, and accrues income impairment.Overall solid.
Judging from the disclosed annual reports and performance reports, the company’s operating income, net profit, total assets and net assets ranked first, and its competitive advantage was obvious.
Wealth management transformation was fully launched, and the market share of the brokerage market increased against the market: In 2018, the market-wide stock base transaction volume extended by nearly 20%, while the market share of CITIC Securities increased to 6 against the trend.
09%, keeping the industry second.
The company is the most securities brokerage with wealth management genes. Its clients, especially high-net-worth clients, are rich in resources and sticky alternatives. In 2018, the company renamed the Brokerage Business Development and Management Committee as the “Wealth Management Committee” to comprehensively transform wealth management and future transformation.With continuous upgrades, branch offices serve as regional customer acquisition platforms, and the future development of the market is worth looking forward to.
Asset management revenue has increased, and active management continues to exert its strength: the company achieved net asset management revenue of 58 in 2018.
$ 3.4 billion, an annual increase of 2.
27%, asset management scale 1.
34 trillion yuan, including 552.8 billion yuan in active management, both ranking first in the industry.
The company’s asset management business performed well, mainly due to the reduction of channel business and the active promotion of the transformation of investment and research results, the continuous expansion of the scale of active management, which resulted in the continued strength of the fund business and revenue growth9.
08%, stemming from the company’s increasing investment and research capabilities, the continuous enrichment of fund products, and the continuous development of institutional business.
The strength of the investment bank broke through, and the launch of the science and technology board was good for business development: The company’s investment bank continued to maintain its leading position. In 2018, the territory distribution underwriting scale was US $ 178.3 billion, with a market share of 14.
75%, the scale of bond underwriting is 765.9 billion yuan, and the market share is 5.
11%, ranking first in the industry.
After the launch of the science and technology board, securities firms with outstanding pricing capabilities and strong sales 武汉夜网论坛 capabilities will stand out in the new round of competition, the company’s investment banking advantages will be more obvious, and the city’s share will further increase.
The acquisition of Guangzheng strengthens the strength of the South China region and encourages employees to inspire vitality: If the company successfully acquires Guangzhou Securities, it will strengthen the company’s strength in the South China region and share the dividends of the Guangdong-Hong Kong-Macao Greater Bay Area.
The company released the draft employee stock ownership plan on March 4. If it is successfully implemented, it will help the company to bind high-quality talents and elders to improve the company’s operating efficiency and profitability.
Investment suggestion: The company’s leader is generally very stable, with strong performance and strong competitive advantages.
Against the backdrop of structural reforms on the financial supply side, the company, as a leading broker, attempts to enjoy the dividends of direct financing for capacity expansion.
If the acquisition of Guangzheng will expand the strength of South China and implement employee incentives to improve operational efficiency, we are optimistic about the company’s future development and maintain a “buy” investment rating.
Risk factors: market volatility exceeds expectations, operating conditions are less than expected, risk of M & A failure