Main points of investment
Operating income and net profit attributable to shareholders increased significantly. In 2019, the company achieved operating income of 24.59 billion yuan, an increase of 61.0% over the same period last year, mainly due to the substantial growth of institutional services and trading business; the net profit was 5.8 billion yuan, an increase of 36.6% over the same period last year; and the net profit belonging to the parent company was 5.74 billion yuan, an increase of 37.9% over the same period last year. Basic earnings per share were 0.24 yuan, an increase of 26.3% over the same period last year.
The steady improvement of investment banking business promotes the growth of corporate financial business. In 2019, corporate financial business income reached 2.29 billion yuan, an increase of 24.9% over the same period last year, mainly due to a substantial increase of 40.9% in securities underwriting business. In 2019, the company completed 13 equity financing projects, with a financing amount of 13.879 billion yuan, an increase of 7.7 percent over the same period last year. "Anji Technology" recommended and underwritten was the first batch of listed enterprises issued by Science and Technology Innovation Board, and completed six mergers and acquisitions, ranking fifth in the industry. the company completed 61 creditor underwriting projects, with the main underwriting amount of 45.205 billion yuan, doubling the number and amount over the previous year.
Personal financial business grew slightly, and capital intermediary business developed steadily. In 2019, the company achieved 7.23 billion yuan in personal financial business income, an increase of 11.7% over the same period last year. In terms of securities brokerage business, securities customer escrow assets increased by 33.9% compared with the end of last year; the net income of agency buying and selling business was 3.023 billion yuan, with a market share of 4.3%, firmly in the forefront of the industry. In the margin trading business, the demand for margin trading increased in 2019, and the company made full use of Science and Technology Innovation Board's qualification to expand the source of securities. The final balance of margin trading was 51.71 billion yuan, an increase of 18.4% over the same period last year, and the market share was 5.05%. The average guarantee ratio is 268.72%. The balance of the stock pledge business was 24.488 billion yuan, down 43.94 percent from the same period last year.
Net income from asset management increased slightly. The company's investment management business includes three parts: asset management, public fund management and private fund management. In 2019, the company realized 1.667 billion yuan in income from the investment management division, an increase of 15.46 percent over the same period last year, of which the net income of the asset management business was 1.29 billion, an increase of 7.6 percent over the same period last year. The company carries out public fund management business through subsidiary Shen Wanling Xin and Wells Fargo Fund, and private fund management business through Shenwan Hongyuan Industrial Investment, Hongyuan Huifu and Shenwan Direct Investment. In 2019, the assets under management of Wells Fargo Fund at the end of the period was 339.059 billion yuan, down 21.9% from the end of 2018, and Shenwan Direct Investment increased the fund size by 2 billion yuan.
Our point of view: the company's brokerage business is in the forefront of the industry, the capital intermediary business is developing steadily, the debt financing business in the investment banking business is leading the industry, the equity financing business is steadily improving, and the derivatives business is growing by leaps and bounds. Investors are advised to pay attention to it actively.
Risk tips: 1) large market fluctuations affect investment and trading returns; 2) investment banking business growth is not as expected; 3) brokerage business growth is under pressure