Event: in 2018, Nanjing Securities achieved revenue of 1.234 billion yuan, year-on-year-11.13%, and net profit of 232 million yuan, compared with-43.55% of the same period last year. By the end of 18, the company's total assets were 24.775 billion yuan, + 5.42% year-on-year, and net assets were 10.593 billion yuan, + 13.10% year-on-year. The capital leverage ratio is 46.14%. The weighted average ROE2.32%, decreased by 2.10% compared with the same period last year. The cash dividend is RMB 1.00 yuan (including tax) for every 10 shares, and the total cash dividend is about 275 million yuan (including tax). For every 10 shares, there is an increase of 2 shares, resulting in a total increase of 550 million shares.
In the first quarter of 2019, Nanjing Securities achieved revenue of 507 million yuan, + 53.84% year-on-year, and net profit of 211 million yuan, + 91.13% compared with the same period last year.
The total assets were 31.481 billion yuan, + 27.07% at the end of last year, and the net assets were 10.821 billion yuan, + 2.15% at the end of last year. ROE was 1.97%, an increase of 0.80% over the end of last year.
Brokerage, self-management, finance and finance work together, and the traditional business is growing rapidly. In the first quarter of 2019, the revenue of brokers, proprietors and financial companies was 137 million yuan, 157 million yuan and 166 million yuan respectively, an increase of 29.25%, 201.92% and 55.14% over the same period last year.
Investment banking business is slowing and revenue is down from a year earlier. The company's investment banking revenue in the first quarter was 34 million yuan, down 29.17% from the same period last year. With the improvement of the market environment and the company's development of Science and Technology Innovation Board's business, investment banking revenue is expected to increase in the second half of the year.
Investment suggestion: after IPO, the company's capital strength is enhanced, business transformation is accelerated, and the reform effect of business line transformation is expected to further show due to the recovery of the securities market. The company ploughs Jiangsu, Ningxia market, the actual control is Nanjing State-owned assets Group, the capital strength is abundant, the resource advantage is outstanding. The company's current valuation is PB2.90 times, reflecting the nature of secondary new shares.
Risk hints: a-share trading activity decreased; market volatility risk; capital market reform did not meet expectations; business transformation did not meet expectations; the quality of Science and Technology Innovation Board listed enterprises did not meet expectations.