CITIC Securities (600030)： Pioneering Performance Evaluation of the Leading Reform of the Securities Industry Takes Advantage洗浴
CITIC Securities (600030): Pioneering Performance Evaluation of the Leading Reform of the Securities Industry Takes Advantage
Recommendation logic: CITIC Securities is backed by CITIC Group, and is committed to engaging in rich industrial resources, integrated capital strength, good brand reputation and huge talent team, maintaining the industry first in many business rankings, and competing in a fierce market.Zhongwen ranks in the industry leader.
In the future, through the implementation of the company’s employee shareholding plan, science and technology innovation policy dividends will continue to be released, and the pace of financial opening up will accelerate. CITIC Securities’ industry leader and reform pioneer role can fully enjoy policy dividends and achieve long-term value growth.
Brokerage business: The commission rate fell only marginally, and the market share bottomed out.
In recent years, both the market turnover and commission rates have fallen. Although the company’s brokerage income has also made up, the decline has been lower than the industry average. The market share of the brokerage business in 2018 was 6.
09%, the highest level in the past 四川耍耍网 five years, the market share ranked second in the industry.
In the future, the company’s transformation in wealth management will increase, and the brokerage business income is expected to stabilize and rebound, further increasing market share.
Credit business: The cost advantage is obvious, and the scale expansion is worry-free.
As an industry leader, the company has obvious channel and brand advantages. It has rich and high-quality institutional customer resources, coupled with a complete business structure and diversified financing channels, which translates into capital strength and alternative financing cost advantages. The company’s interest in capital intermediary businessThe disadvantage is obvious.
With the rise of market risk appetite in the future, the scale of credit business is also expected to usher in 夜来香体验网 expansion.
Investment Banking Business: The project has sufficient reserves and enjoys policy dividends.
With its advantages in institutional customer resources, the company leads its peers in traditional investment banking.
The scale of financing has ranked first in the industry for many years.
In terms of project reserves, relying on a strong industrial background and redundant staff, CITIC Securities has accumulated a wealth of project resource reserves.
As of March 2019, the company’s IPO project reserve was 91 orders, ranking fourth in the industry.
In the future, restructuring and refinancing requirements will be improved and the catalysis of the science and technology board policy will be improved. The company’s equity financing is expected to bring project advantages and estimated pricing advantages to fully enjoy policy dividends and boost performance.
Overseas business has accumulated a lot, and direct investment performance is expected.
The company’s overseas business platform, CLSA, has grown into an excellent broker with complete licenses and diversified businesses.
The company is committed to building CITIC Lyon into a boutique investment bank based in overseas markets. It is expected to benefit from the national One Belt One Road policy plan in the future to become an important profit point for overseas business.
The direct performance contribution of the direct investment business is outstanding. Through the sci-tech innovation policy, the company’s direct investment subsidiaries have more obvious advantages in project reserves and product investment, and the future performance contribution will promote continuous improvement.
Earnings forecasts and investment advice.
It is predicted that the compound growth rate of net profit attributable to CITIC Securities for 2019-2021 will be 31%, and the basic income will be 1.
18 yuan, 1.
46 yuan, 1.
Considering that the company is a leader in the industry, many businesses have steadily ranked first in the industry, and their performance is extremely advantageous. They have obvious first-mover advantages in innovative businesses such as direct investment, overseas, and derivatives, so they should allocate a premium.
Therefore, CITIC Securities will be given 2 in 2019.
2x PB, corresponding to a target price of 29.
8 yuan, the first coverage given a “buy” rating.
Risk reminders: The decline in the capital market conditions may put pressure on the company’s performance and estimates; the oversight of supervision may have an impact on the company; increased market competition may weaken the company’s business advantage.