Huatai Securities (601688): Technology-enabling Wealth Management Leads International Business Layout

The rapid expansion of capital and high-quality war investment helped the development of Huatai Securities, formerly known as the Jiangsu Securities Company, was established in 1990.

In 2009, the company merged with Xintai Securities Co., Ltd.

The company was successfully listed on the Shanghai Stock Exchange in February 2010, and on the main board of the Hong Kong Stock Exchange in June 2015.

The actual controller of the company is the State-owned Assets Supervision and Administration Commission of Jiangsu Province. In 2018, the overall plan for the pilot reform of the company’s ownership system was approved, and the non-public issuance of A-share shares was set to increase by $ 14.2 billion. At the same time, strategic investors such as Alibaba and Suning Tesco were issued to further deepenInternet operation ideas.

In terms of comprehensive strength, Huatai Securities, a leading ROE industry, achieved operating income of 161 in 2018.

08 million yuan, a decline of 23 per year.

69%; net profit is 50.

33 trillion, down 45 a year.


The company’s 2018 business segments are ranked by revenue (26%), brokerage (21%), credit (19%), asset management (15%) and investment bank (12%).

From 2016 to 2018, Huatai Securities ranked among the top five in the industry in terms of revenue and profit, and its net capital ranking has grown year by year over the past three years.

The company’s ROE in 2018 was 5.

32%, a decrease of 5 from the previous year.

24 per share, but will continue to increase beyond the overall ROE of the securities industry (3.

52%), reflecting the restructuring of Huatai Securities’ capital profitability.

Technology empowers wealth management, leading international business layout. Huatai Securities is one of the domestic brokers that initially launched mobile trading terminals. In 2009, it developed the “Legend” mobile client. After taking the lead in commission reform in 2013, the company’s brokerage business accounted forThe rate has risen sharply, ranking first in the market from 2014 to 2018.

The company applies fintech to upgrade the intelligent marketing service platform, actively promotes online and offline technology upgrades and integration of the entire business chain resources, rapid online intelligent service creation and function upgrades, offline promotion of intelligent transformation of outlets, and reshaping of business outlet positioning and value, Currently has leading operating outlets operating efficiency among the leading brokers.

In the future, wealth management services will become more digital and intelligent. The company’s efforts for technological innovation continue to increase, and digital channels are used to build a platform and new system of wealth management services.

Technology-driven business development and significant transformation in wealth management have been achieved. In addition to the continued leading market share of the brokerage business, financial product sales and capital intermediary business development have also shown a good trend.

The company’s international business layout is leading. Through the relaxation of a large number of access policies for the securities industry, 苏州夜网论坛 the introduction of a series of policy measures such as the cross-border business release of securities companies, the two-way opening of the capital market has steadily expanded, and international development has gradually advanced. In the future, the first GDR of Huatai Securities will land, Will realize the cross-border development of Hong Kong, the United States and Europe. The company ‘s international business revenue has steadily increased in the past three years, increasing by + 18% in 2018 and accounting for +4 of its revenue.

61 units.

The company’s other businesses also have their own characteristics. The investment banking business continues to implement the strategy of boutique investment banking. After 18 years, it has led the industry while allocating financing scale against the market growth.

Diversified self-operated investment business, continuously improving investment capabilities and product creation capabilities, and gradually moving towards “big self-employment”.

The scale of the asset management business is steadily increasing, and the transition to active management has been effectively implemented, and the asset management structure has been continuously optimized.

Earnings forecast and investment rating estimate that Huatai Securities’ revenue for 2019-2021 will be 200.

80, 219.

99, 238.

29 trillion; net profit attributable to mothers was 76.

09, 83.

41, 89.

47 ppm and BVPS were 13.

52, 14.

43, 15.

41 yuan.

The company’s strong capital has a leading business layout. The ROE industry is in the top position, and it should be estimated to exceed the industry average. In 2019, it will achieve profit improvement and estimated upward revision.

Give a target price of 24.

3 yuan, corresponding to 2019 P / B ratio of 1.

8X, for the first time, gave an “overweight” rating. Risks indicate that the development of overseas business is less than expected, potential risks in the securities market, stock pledge risk, liquidity risk, and policy advancement are less than expected.