Huatai Securities (601688) Annual Report Comments: Outstanding Performance, Mixed Reform Continues to Advance

Core Views Huatai Securities released its 18th annual report, the company realized operating income of 16.1 billion US dollars, every 23 years.

7%, deducting non-net profit of 50.

100 million US dollars, a year -17%, the industry net profit fell 41% during the same period; meanwhile, the company changed the average deduction of ROE5.

3%, down by 1 every year.

57 points.

On the whole, the company’s performance has been outstanding in a difficult market environment, and it has continued to strengthen its core competitiveness.

  The high beta business is the core reason for the decline in the company’s performance: 1) Brokerage income33.

9 ‰, at least -19.

6%, of which the company’s share-based trading market share for the past 18 years is 7.

1%, a decline of 0 per year.

68%, steadily maintaining the number one in the industry; the company’s commission rate is 10,000.

37. One million increase in one year.


The company’s assets AssetMark has vigorously promoted the construction of the investment advisory team. The 18-year fund and trust product sales scale was US $ 77.9 billion, + 202% per year.

  2) Self-employed: The company’s 18-year self-employed performance was US $ 3.7 billion, exceeding 54% of the breakdown.

The preliminary is that in 2017, the Bank of Jiangsu’s accounting measurement was adjusted to increase the investment income by 3 billion at one time; and the implementation of the scale of new financial instruments in 2018 exacerbated the current period of self-operated income performance.

  In the low beta business, asset management, investment banking, and pledged performance have all remained stable.

1) Investment bank income 19.

500 million, a year -4.

4%, industry investment bank income during the same period was -27.


IPO underwriting permanent leading projects is the core reason for the outstanding performance of investment banks. It is expected that the historical possibility of science and technology board will be seized in the future.

2) Asset management income 24.

7 trillion, ten years +7.


Among them, the scale of active management continued to increase and the channel contracted.

In addition, the company’s asset management has a public offering license and manages the scale.

64 trillion, ten years + 12%.

3) Credit business: The balance of the stock pledge to be repurchased is 53.9 billion US dollars, -41% per year. The company’s own funds participate in 28.3 billion US dollars.

The 18-year stock pledge performance guarantee ratio is 232%, and the overall risk is controllable.

  The company deepened mixed reforms and piloted a professional manager system.

In August 2018, the company was divided into the first batch of pilot enterprises for mixed reform in Jiangsu Province.

At the same time that the company completed the fixed increase in 18 years, it was dating Ali and Suning. In March 19, the board of directors passed a resolution to implement a professional manager system at the senior management level and planned to establish an executive committee.

Huatai’s plan is conducive to further improving the efficiency of business decision-making, establishing a perspective of the company’s business layout, and thereby enhancing the core competitiveness of the enterprise.

  Financial Forecast and Investment Suggestions We expect the company’s BVPS to be 12 in 2019-21.


93 (previous forecast 19-20 13).

49), according to comparable company estimates, we give companies February 2019.

1xPB, corresponding to the expected 27.

22 yuan, maintaining the overweight level.

  Risk reminders: Systematic risks suppress the company’s estimates; the advancement of science and technology board is less than expected.