This report is read as follows:
The strategic positioning of "based on the western region and serving the whole country" is clear, and the national "Belt and Road Initiative" initiative brings development opportunities and a steady transition to capital-driven and professional-driven, giving the company 1.9X Phammer B, corresponding to the target price of 9.76 yuan.
Main points of investment:
1. For the first time, it was given a rating of "prudent overholdings" with a target price of 9.76 yuan. The company has established the development goal of "based on the western region and serving the whole country", with clear strategic positioning and strong location advantages, and the national "Belt and Road Initiative" initiative brings development opportunities. The company has actively transformed to a capital-driven and professional-driven model, and its anti-risk and anti-cyclical capabilities have been strengthened. in 18 years, the industry ranking of net assets / revenue / net profit is 28th / 35th respectively. We estimate that the company's net profit for 2019-21 will be 8.3%, 1.32 billion yuan, 1.32 billion yuan and 4.7%, 6.1%, 6.9%, respectively, for EPS, 0.24, 0.32 and 6.7%, respectively. With reference to the valuation of the peer-to-peer comparable company, the company is given 1.9X Pmax B, corresponding to the target price of 9.76 yuan.
two。 The investment style is steady and the broker takes the initiative to transform. 1) the 18-year investment income is 1.268 billion yuan, an increase of 2.1% over the same period last year, accounting for 57% of the total income, and the industry ranks 19th. Among them, 86% of fixed income assets accounted for more than 600 million yuan in operating profits of investment business from 2015 to 2018, and the income was sound. 2) 18 years of brokerage business actively counter-cyclical adjustment, a comprehensive transformation to the wealth management model, the net income of securities brokerage business accounted for 22.38% of the total income, the second largest source of income and profit, the industry ranked 35th.
3. Deep ploughing the western region, "Belt and Road Initiative" advocated blessing. 1) ploughing the western region for a long time, it has a leading market position in Shaanxi Province. There are 107 securities business departments in China, of which 60 are in Shaanxi Province. The national "Belt and Road Initiative" initiative provides a major development opportunity for the company. 2) Shaanxi Investment Group, the actual controller of the company, is the first pilot unit of state-owned capital investment and operation reform under Shaanxi SASAC, which provides a strong guarantee for the development of the company. In 18 years, the company provided Shaanxi Investment Group with a total amount of 22.64 million yuan, including bond underwriting and financial advisers.
4. Catalyst: the improvement of market activity; the continuous promotion of capital market reform and innovation.
5. Risk tips: credit risk of capital intermediary business; strict supervision of the industry.
