Guoxin Securities (002736) 2019 Third Quarterly Report Review: Proprietary Growth Growth Broker Transformation Accelerates

Guoxin Securities (002736) 2019 Third Quarterly Report Review: Proprietary Growth Growth Broker Transformation Accelerates

Event: The company achieved operating income of 98 in the first three quarters of 2019.

700 million, an annual increase of 55.

67%; realized net profit of 37.

400 million, an annual increase of 93.

37%.

The average return on net assets is expected to increase by 3 per year.

74ppts to 7.

39%.

The brokerage business improved steadily, and wealth management accelerated its transformation.

In the first three quarters of 2019, due to the active market transactions, brokerage income increased by more than 24.

9% to 32.

300 million, accounting for 33% of total revenue.

In the second quarter, the company announced the formal launch of a return plan for veterans of the brokerage business to jointly explore the transformation of wealth management.

We believe that through the company’s continued increase in fintech expansion and asset allocation to promote the transformation of wealth management, we expect the company’s traditional South China-based brokerage business advantages to be increasingly exerted.

Proprietary business growth.

The company benefited from the obvious boost from the stock market, and at the same time better grasped the investment potential of the bond market during the year. The company’s net operating income in the first three quarters was 33.

7.1 billion, an increase of 242% every year, reflecting the company’s outstanding investment and transaction capabilities.

We believe that the company’s ability to invest and trade in the future will become an important driving force for the company’s performance development and further contribute to the company’s performance flexibility.

Science and technology board helps investment banking 重庆耍耍网 business.

In the first three quarters, the company’s investment banking business income9.

4.2 billion, an increase of 17 per year.

3%.

According to Wind data, in the first three quarters, the company underwent 6 IPOs, ranking 7th in the industry, of which 3 were listed on the science and technology board.

As of the end of the 10 months, the company had five companies in the science and technology board and currently has three companies under review; the company’s bond underwriting scale in the first three quarters was 87 billion yuan, an increase of 13.
.

7%.

It is expected that the speed of passing the review of the science and technology board will accelerate the performance of the company’s investment bank.

Structural contraction of asset management business.

Affected by the contraction of the industry 南京桑拿网 channel business and the active management transformation, the company’s asset management business revenue in the first three quarters decreased by 8%.

8% to 1.

700 million.

It is expected that with the implementation of the new rules on asset management, the company’s asset management business income may further shrink.

Maintain “overweight” level and maintain target price of 15.

41 yuan.

The company’s performance in the first three quarters of 2019 has increased significantly, and its self-operated and brokerage businesses have become a dual driving force for driving performance.

The company’s science and technology board reserves are abundant, with enhanced investment and trading capabilities, and the risk exposure will be shifted after the size of the equity mortgage contraction.

Based on this, we have raised our net profit forecasts for 2019-21 to 50 billion, 56 billion, and 6.1 billion, respectively, and maintain the “overweight” rating. It is expected that the three major asset-light business operations of corporate brokerage, self-employment and investment banking will grow, and the estimated level will improveTo further promote, follow 2.

20 x PB, maintain target price of 15.
41 yuan.
Risk warning: the market is volatile; equity pledge risks continue