Main points of investment
Events:
Dongxing Securities released its semi-annual report for 2017. the main financial data are shown in the table below. At the same time, the company's annual profit distribution in 2016 will pay a cash dividend of 1.5 yuan (including tax) to all shareholders for every 10 shares.
Comments:
The overall performance of the company in the first half of the year is weak, and the decline of investment banking and proprietary business is the main factor.
The degree of market dependence is increased, and the performance flexibility is large. The company's core business, brokerage business and proprietary business account for more than 70% of the total revenue. As the heat of the market rises, it is expected that the upward elasticity of performance will also increase.
Agent:-28.0%. Under the influence of the market, there was a decline, and the rate of decline was the same as that of the industry.
Investment bank:-28.0%. The growth rate of IPO scale is significantly ahead of the industry, and the decline in the scale of additional issuance is also much smaller than that of the industry, but the scale of debt has dropped sharply, resulting in a decline in investment banking business as a whole.
Asset management: 47.6%. The scale develops rapidly, the momentum is good, the income contribution is small, but the growth rate is nearly 50%.
Self-management:-34.5%. Poor performance, as the company's largest source of income, is the main reason for the decline in performance.
Credit: reduce losses. The scale of each business remains stable. The company's debt has been reduced this year, the problem has been alleviated, and the loss on net interest income in the first half of the year has been reduced.
Valuation and rating: assuming that the average daily trading volume of 17Mel's brokerage business in 1919 is 500 billion, 521.5 billion and 547.6 billion respectively, and the average daily balance of the two financial institutions is 1 trillion, 1.1 trillion and 1.1 trillion respectively, it is estimated that the EPS of 17Mui in 1919 will be 0.44,0.53,0.54 yuan respectively, maintaining its overweight rating.
Risk hint: the risk in the capital market has fallen sharply.