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中原证券(601375)中报点评:深耕河南 稳步发展

Comments on Zhongyuan Securities (601375): deep ploughing and steady Development of Henan Province

太平洋證券 ·  Aug 28, 2019 00:00  · Researches

Event: Zhongyuan Securities released its 2019 semi-annual report, with operating income of 1.287 billion yuan, an increase of 48.76% over the same period last year, and net profit of 240 million yuan, an increase of 64.63% over the same period last year. By the end of the reporting period, the company's total assets were 45.332 billion yuan, an increase of 23.58% over the end of last year, and its net assets were 6.775 billion yuan, a decrease of 2.81% compared with the end of last year. The weighted average return on net assets was 2.38%, an increase of 0.95 percentage points over the same period last year. Every 10 shares will be paid a cash dividend of 0.20 yuan (including tax).

The securities brokerage business has grown steadily and its market share has increased. In the agency securities trading business, the market share of new customers and opening accounts increased by 507.92% and 417.87% respectively over the same period last year. During the reporting period, the company added 439 new option customers, a total of 2630 option customers, an increase of 19.60% over the end of 2018, and 1.083 million contract transactions, an increase of 69.70% over the same period last year.

The operation of futures business is standardized, and the economy, risk management and asset management develop in coordination. By the end of the reporting period, there were 19 existing asset management plans with a net value of RMB 2.962 billion at the end of the period. During the reporting period, Central Plains Futures added 1202 customers, serving a total of 25347 customers, and the cumulative trading volume was 937.79 million, an increase of 7.97 percent over the same period last year; and the cumulative turnover was 518.28 billion yuan, up 5.61 percent over the same period last year.

Investment banking business deeply ploughs the local Henan market and gives full play to the local advantages. During the reporting period, the company, as the lead underwriter, completed 1 non-public stock offering project and 2 public convertible bond project, with a total financing amount of RMB 1.926 billion; completed 3 independent financial consultant projects for mergers and acquisitions of listed companies; completed 1 listing on the new third board and 4 targeted financing orders on the new third board, with a financing amount of 138 million yuan. The company has completed 5 corporate bond projects and 2 corporate bond projects, with a total underwriting amount of RMB 4.335 billion.

Investment suggestion: the company ploughs Henan, and each business line develops steadily. A dual listing broadens the channels for replenishing funds. Maintain the "overweight" rating.

Risk hints: a-share trading activity decreased; market volatility risk; macroeconomic downturn.

The translation is provided by third-party software.


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