Overview of the 2020 Interim Report: Guoxin Securities achieved operating income of 8.039 billion yuan in the first half of 2020, +23.03% year-on-year; net profit of 2,946 billion yuan, +13.38% year-on-year. Basic earnings per share were 0.34 yuan, +13.33% yoy; weighted average return on net assets was 6.07%, +0.65 percentage points yoy. There will be no distribution or increase for the half year of 2020. Comment: 1. In 2020H1, the share of net income from brokerage and interest of companies increased, while the share of net income from investment banks, asset management, investment income (including changes in fair value), and other businesses declined. 2. The market share of net income from brokerage securities trading fees was 5.02% (excluding seat leasing), ranking third in the industry; net income from brokerage fees was +21.84% year-on-year. 3. Net income from investment banking business fees was +21.88% year-on-year, and IPO project reserves increased significantly compared to the end of 2019, and are at the forefront of the industry. 4. The ranking of the large-scale asset management industry has increased dramatically, and net income from handling fees is +16.07% year-on-year. 5. Investment income (including changes in fair value) declined slightly by 2.15% year on year. 6. Net interest income increased sharply by 107.75% year on year. Investment suggestions: During the reporting period, the company's main businesses showed impressive year-on-year growth; the company's market-based capabilities and comprehensive service capabilities were prominent, and it gradually built a differentiated competitive advantage in fierce market competition; completing a fixed capital increase of 15 billion yuan will further enhance capital strength and help the company seize the historic opportunity of comprehensively deepening capital market reforms and achieve rapid growth. The company's full-year profit forecast was raised by comprehensively considering various factors such as dynamic changes in the capital market. The company's 2020 and 2021 EPS are expected to be 0.56 yuan, 0.60 yuan (previously 0.50 yuan, 0.52 yuan), and BVPS of 7.21 yuan and 7.36 yuan respectively. Based on the closing price of 14.04 yuan on August 26, the corresponding P/E is 25.07 times and 23.40 times, and the corresponding P/B is 1.95 times and 1.91 times respectively, maintaining an investment rating of “increased holdings”. Risk warning: 1. Weakening in equity and fixed income secondary markets has made the company's various businesses unable to continuously improve; 2. The short-term growth rate is too fast and the increase is too large, leading to rapid adjustments in the company's stock price; 3. The progress and intensity of comprehensive deepening capital market reforms falls short of expectations