GF Securities (000776): First quarter net profit quarter + 91% Brokerage and asset management business revenue tops growth rate

GF Securities (000776): First quarter net profit quarter + 91% Brokerage and asset management business revenue tops growth rate

Event GF Securities released the 2019 first quarter report.

In the first quarter of 2019, the company achieved operating income of 68.

39 trillion, ten years +76.

85%; net profit attributable to mother is 29.

19 trillion, +91 for ten years.

25%; basic profit income is 0.

38 yuan.

As of the end of the first quarter of 2019, the company’s equity was owned by its parent shareholders 887.

840,000 yuan, +4 from the beginning of the year.

43%; BVPS 11.

65 yuan.

The short-scored performance exceeded expectations, mainly due to the increase in investment income.

(1) Benefiting from the market recovery, the company realized investment income (including income from changes in fair value) in the first quarter of 201935.

US $ 9.9 billion, + 148% per year. It is estimated that the increase in equity self-operated business income has increased significantly, and the subsidiary Guangfa Shunde’s investment income has increased significantly.

(2) According to the statement of profit statement, in the first quarter of 2019, the proportion of the company’s brokerage / investment bank / asset management / investment / interest net income to total operating income was 17% / 4% / 13% / 53% / 10%Business picks the girders.

Flexible allocation of funds, self-adjusted structure, shrinking stock pledges.

(1) Facing the bull market, the company carefully adjusted the structure of its self-employed disk, moderately increased equity investment, and lightened solid income 北京夜网 investment.

As of the end of the first quarter of 2019, the company’s financial investment totaled 1,894.

00 trillion, which was basically flat earlier, while selling back 680 financial assets.

540,000 yuan, -20 from the beginning of the year.

86%.

(2) In order to prevent risks, the company significantly reduced the size of the stock pledge business, and bought back 270 financial assets at the end of the period.

43 trillion, compared with the beginning of -26.

54%; further credit impairment losses1 were accrued during the period.

3 billion.

If the subsequent market recovers or stabilizes, credit impairment losses are expected to continue to reverse.

Group management of asset management business gradually achieved significant results.

In the first quarter of 2019, the company realized net income of asset 淡水桑拿网 management business8.

80 trillion, +5 for ten years.

26%.

GF Asset Management follows the requirements of the new asset management regulations and steadily promotes the transformation of connotative growth and transformation of quality, including active management. At the end of 2018, the asset management scale was 3814.

11 trillion, compared with the beginning of -27.

13%.

The shareholding fund subsidiaries have steadily expanded. At the end of the first quarter of 2019, the net asset value of GF Fund totaled 4,827.

370,000 yuan, +4 from the beginning of the year.

90%, the total net asset value of E Fund reached 7044.

69 trillion, +9 from the beginning of the year.

76%. The influx of funds from brokerage clients, the investment banking business traded for price.

(1) The company uses wealth management, institutional brokerage, technology finance and integration as four-wheel drive to promote the steady transformation of wealth management business.

The securities market was active in the first quarter of 2019, and the company achieved a net income of brokerage business11.

63 ppm, +9 for ten years.

96%; the total amount of securities traded at the end of the period was 887.

700,000 yuan, +51 from the beginning of the year.

89%.

(2) In terms of investment banking business, the company continued to consolidate its advantages in the field of high-quality SME customers. In the first quarter of 2019, the recovery caused by the scale of stocks and debt underwriting increased by + 172% and + 249%, respectively.Net worth income 3.

07 million yuan, at least -13.

53%, allegedly dragged down by lower underwriting commission rates.

As of now, the company has 23 IPO projects in the meeting (second in the industry), and the advantages of reserve projects are expected to gradually translate into performance.

Investment suggestion: Maintain “overweight” rating.

The performance of the securities brokerage sector in 2019 will continue to benefit from the easing of liquidity and the catalysis of capital market reforms. The long-term market is worth looking forward to; under the regulatory thinking of “supporting the good and limiting the bad”, the capital strength has been enhanced (the net assets at the end of June 2018 ranked fifth in the industry), The wind control system is perfect (achieved AA rating from the CSRC for 2 consecutive years), and the company ‘s innovative ability is strengthened (technical finance, leading layout of big asset management joint ventures). GF Securities will be one of the beneficiaries.The icing on the cake of related business.

Regardless of the impact of the fixed increase on equity replacement, we expect GF Securities’ BVPS to be 11 in 2019-2020.

93 yuan and 12.

69 yuan, corresponding to 1 for the current budget PB.

29X and 1.

21X to GF Securities (000776).

SZ) “Overweight” rating.

Risk warnings: stock market recovery fails to meet expectations; marginal easing of monetary and credit policies fails to meet expectations; capital market reform progress does not meet expectations.

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