Huatai Securities (601688): Solid customer base advantage points to industry leader

Huatai Securities (601688): Solid customer base advantage points to industry leader

In 2019, the marketization and internationalization of Huatai Securities has actually landed: GDR was successfully issued, and fundraising was raised16.

$ 900 million; 武汉夜生活网 subsidiary AssetMark is listed on the NYSE.

On the basis of a solid customer base, wealth management transformation has blossomed in multiple points, the company’s share-based trading market share has steadily ranked first in the industry, and asset management business has grown against the trend.

The company’s overall industry as a whole is solid, and the sword refers to the industry leader.

The marketization and internationalization strategy was effectively implemented.

1) In June this year, the company successfully issued a GDR on the London Stock Exchange and raised a total of 16 funds.

9 billion US dollars, creating multiple financing records in the UK and even European capital markets, further enhancing the company’s capital strength and international influence.

2) The professional manager system reform was formally launched to further advance the pace of market-oriented development and effectively stimulate the company’s operating vitality.

3) In July this year, AssetMark was successfully listed on the NYSE.

In the initial public offering, the reorganization strengthened the company’s influence in the US business; the reorganization, the current assetmark market value19.

US $ 6.6 billion, previously at Huatai’s acquisition in 20167.

The value of 7.9 billion US dollars increased significantly.

The company’s capital strength has been continuously enhanced and the competitiveness of various businesses has been steadily improved.

In terms of channel business, the company’s share-based trading market share was 7 in the first half of the year.

63% for the fifth consecutive year.

The asset management business maintained a good development trend and achieved revenue in the first half of the year.

0 ppm, a year-on-year growth of 25%, achieving a large increase against the trend, and active management transformation is effective.

In terms of treasury business, we actively worked out layout investment strategies, and our credit business remained under pressure.

For self-operated businesses, the company actively promoted the transformation of equity-based businesses into transactions; reorganized and consolidated income businesses used a variety of trading strategies to achieve steady growth in investment performance.

In terms of credit business, Liangrong Business ranked second in terms of market share, with outstanding customer base advantages. The risk control of stock pledge business was stable, and the scale continued to drop.

Investment Suggestion: Maintain Strongly Recommend-A.

We have a stable and positive outlook for the market outlook. The company’s industry integration is solid and its overall strength is steadily improving.

We are optimistic about the company’s subsequent development based on: (1) industry development trends (capital market reform); (2) the company’s excellent customer base; (3) further optimization of the state-owned enterprise mixed reform mechanism; (4) and relatively high performance flexibility.

The company’s 19/20/21 net profit is expected to be 8.2 billion / 9.3 billion / 10.4 billion, of which +62% / + 14% / + 12%.

We give company 1.

9 times 19-year PB estimate, target price is 24.

22 yuan, space + 41%.

Risk Warning: The equity market has changed rapidly, industry innovation policies have exceeded expectations, regulatory policies have clearly become more severe, and competition in the industry has intensified.