The performance of the China report is basically in line with expectations. Guojin Securities 23H1 achieved revenue / return net profit of 3.327 billion yuan / 874 million yuan, yoy+29.39%/+61.08%, is mainly self-investment business income increased compared with the same period last year.
The weighted average ROE was 2.77%, an increase of 0.73% over the same period last year. 23Q2 realized a net profit of 277 million yuan,-54% month-on-month and-34% compared with the same period last year. Corporate brokerage, investment banking, asset management, credit and proprietary (excluding other income) accounted for 26.9%, 18.2%, 1.6%, 21% and 32.4%, respectively.
Proprietary business income of 978 million yuan, a year-on-year increase of more than 7 times, is the core driver of the company's performance. At the end of the period, the company's financial investment reached 39.308 billion yuan, an increase of 3.8% over the end of 22, mainly due to a substantial increase in the scale of transactional financial assets and a decline in other debt investment.
Brokerage business income of 812 million yuan, yoy-1.2%, is expected to be affected by the decline in consignment revenue. In the first half of 2023, the trading volume of securities sold by agents reached 3.4 trillion yuan, + 5% compared with the same period last year, mainly due to the increase in the size of stocks and funds. Affected by market fluctuations, consignment revenue ranges from-7.6% to 93.3553 million yuan compared with the same period last year.
The change of the business scale of the company is basically the same as that of the whole market, with a net interest income of 633 million yuan, yoy-5.3%. By the end of June 2023, the total number of credit accounts opened was 93100, + 4.04% at the end of last year, and the balance of the financial and financial business was 21.618 billion yuan, + 15.92% compared with the same period last year, and the market share increased to 1.32% from 1.13% in the same period last year.
The investment banking business income is 549 million yuan, yoy-18%, forms the drag on the performance. Equity financing business, the company 2023H1 main underwriting IPO amount reached 3.572 billion yuan, bond financing business, 2023H1 issued a total of 125 bonds (including convertible bonds), a total of 46.825 billion yuan main underwriting amount.
Asset management business income of 47 million yuan, yoy-29.8%, is mainly affected by the decline in asset management income of securities firms.
By the end of June 23, the size of the company's asset management business had reached 1451.51 billion,-19.2% compared with the same period last year, mainly due to the decline in the scale of collective and single asset management business, with the share of 23H1 management reaching 1034.97 billion and 231.58 billion respectively.
Investment advice: benefiting from the comprehensive registration reform, the company's investment banking business is expected to maintain steady growth under the strategy of "investment bank-driven and research-driven". We estimate that 23e's homing net profit is 1.9 billion yuan, + 58.8% compared with the same period last year.
Risk hints: policy risks, market fluctuations, operational and business risks.