Event: the company released its mid-year report in 2019, with an operating income of 1.002 billion yuan, an increase of 57.32% over the same period last year, and a net profit of 384 million yuan, an increase of 105.99% X Roe 3.56%, an increase of 1.59% over the same period last year. The company's total assets were 32.503 billion yuan, up 31.19% over the beginning of the year, and its net assets were 10.712 billion yuan, an increase of 1.12% over the beginning of the year. EPS is 0.14 yuan per share.
The performance of the main business has improved, and the performance of self-management and futures brokers has greatly increased. In the first half of the year, the company's main business performance improved steadily, with securities brokerage business revenue of 544 million yuan, up 6.29% over the same period last year; investment banking revenue of 125 million yuan, up 49.48% year on year; and asset management business revenue of 31 million yuan, up 2.71% over the same period last year. In the first half of the year, the performance of the company's proprietary business and futures brokerage business increased greatly, with revenue of 274 million yuan, an increase of 369.48% over the same period last year, and revenue of futures brokerage business of 95 million yuan, an increase of 337.30% over the same period last year.
Brokerage and credit trading business accounted for a decline in revenue, still contributing more than half of the main revenue. The operating income of brokerage business and credit trading business accounted for 51% of the main business income, down 21% from the same period last year. In terms of brokerage business, the company's net income from buying and selling securities (including seat leasing) was 220 million yuan, an increase of 24.16% over the same period last year; in credit trading business, as of June 30, 2019, the balance of the company's financial and financial services was 4.553 billion yuan, an increase of 21.78% over the beginning of the year; interest income during the reporting period was 162 million yuan, down 22.14% from the same period last year. The balance of the stock pledge repurchase business was 2.6 billion yuan, an increase of 5.15% over the beginning of the year, and the interest income was 88 million yuan, an increase of 36.42% over the same period last year.
The overall performance of the subsidiary is excellent, and a new alternative investment subsidiary has been set up. In the first half of the year, the company's holding subsidiary Ning Securities Futures achieved operating income of 96.8059 million yuan and net profit of 7.6204 million yuan; Jushi Venture Capital, a wholly-owned subsidiary, realized operating income of 11.171 million yuan and net profit of 5.6854 million yuan; Ningxia Equity Trading Center, a holding subsidiary, realized operating income of 208.08 yuan and net profit of-2297 million yuan; Fu Anda fund of the participating company realized operating income of 8393.16 yuan and net profit of 3744.51 million yuan. Division wholly-owned subsidiary, engaged in alternative investment business, registered capital of 500 million yuan. Blue Sky Investment, a wholly owned subsidiary of the company, was registered and established on June 17, 2019 to operate alternative investment business.
Investment suggestion: the company makes use of the regional competitive advantage of brokerage business to promote the development of other business lines. Maintain the "overweight" rating.
Risk hints: a-share trading activity decreased; market volatility risk; macroeconomic downturn.
