Founder Securities (601901): Brokerage market share rises, expense ratio restructuring drives profit growth

Founder Securities (601901): Brokerage market share rises, expense ratio restructuring drives profit growth

The 1H19 results were basically in line with the expected 1H19 results announced by the company: Revenue increased by + 55% to 35.

9 trillion, net profit attributable to mother for ten years + 271% to 7.

6 ppm, basically in line with expectations; ROAE +1 during the reporting period.

45 ppt to 2%.

The higher-than-expected performance was mainly due to the increase in the brokerage and investment business with the decline in the expense ratio (at least -17ppt to 58%).

Development Trends Brokerage customers have steadily increased, and the market share of transaction volume has increased.

The company’s 1H19 brokerage income is +22 per year.

3% to 15.

200 million, of which: 1) the cumulative total number of customers of the parent company + 26% to 10.71 million compared with the end of 18 years, of which the number of contracted clients of transactional 苏州桑拿网 wealth management conversion + 25% to 500,000, the agency market share of securities trading increased by +5.

4% to 3.

1); 2) The scale of consignment of financial products exceeded + 29% to 229.9 billion, and the total revenue of consignment sales was -31% to 19.39 million.

The positive market has driven the growth of proprietary businesses.

The company’s 1H19 investment income is +64 per year.

5% to 7.

400 million US dollars, mainly benefited from the rebound of the stock market and the overall realization of I9, equity investment led to the improvement of performance (the Shanghai index rose 1H19 close to + 33ppt to 19).


The scale of the company’s financial assets is -10% to 673 ppm compared with the beginning of the year, and the scale of bond / equity investment in tradable financial assets accounts for -20ppt / + 2ppt to 60% / 3% of the beginning of the year.

Investment bank business income is + 83% to 2 per year.

3 trillion, but the underwriting amount of stock bonds has increased.

1H19 company equity financing amount of -11% to 13.

600 million, the market share remains at 0.

22%; debt financing amount of -17% to 29 billion in ten years, market share of -0 per second.

3ppt to 0.


Asset management business is relatively stable, with income of +3 for ten years.

6% to 1.

600 million.

The company’s asset management scale at the end of the period was -7 compared with the beginning of the year.

7% to 2580 ‰, of which the active management type remained stable at 803 ‰ in the initial period, accounting for + 2ppt to 31%.

As for credit business, the company’s credit impairment loss in 1H19 was +87 for two years.

5% to 3.

300 million.

1) The interest rate income of the two financial institutions is at least -21% to 7.

100 million, with a surplus of + 18% to 18.2 billion compared with the beginning of the year, and its market share has remained at 2 for a long time.

0%; 2) Income from equity income -48% to 1.

600 million, and its surplus is -12% to 50 compared with the beginning of the year.

200 million, the market share remains at 0.

9%. Earnings forecasts and estimates We raise our company’s 2019/2020 earnings forecasts by 25% / 17% to 15.


30,000 yuan, considering that the company’s brokerage business market share has increased and the expense ratio has dropped.

The current transaction is 2019/20201.


4x P / B.

We maintain our neutral rating and raise our target price by 4% to 7.

61 yuan, corresponding to the 1st of 19 years.

The P / B ratio is 6 times, which is 11% more than the previous merger.

The risk transaction volume has dropped significantly, the stock / bond market has changed drastically, and progress in capital market reform has been gradually expected.