Huatai Securities (601688) Company In-depth Study： Clear Strategy, Prospective Layout Leader in Securities Industry
Huatai Securities (601688) Company In-depth Study: Clear Strategy, Prospective Layout Leader in Securities Industry
Core point of view: Grasp the strategic potential and become one of the first echelon companies. Formerly known as the Jiangsu Securities Company established in 1991, the company seized the opportunity to make a series of expansions before listing to realize the rapid development of business scope and business areas.Since listing, the company’s capital strength and profitability have accelerated to catch up; benefiting from a clear strategic positioning and strong strategic execution capabilities, the company’s development pace has further accelerated. While maintaining the first echelon of the securities industry, it is looking ahead to lay out wealth management.It has seized the first-mover advantage in terms of the introduction of strategic shareholders.
The strategic positioning is clear, and the leading business companies focus on customer needs, restructuring the two major business systems 合肥夜网 of retail and wealth management and institutional customer service: in terms of wealth management, a firm strategic change direction, and information technology to create differentiated competitiveness.
1) The company’s Internet strategic layout and strategy execution are leading the industry and based on the customer base; 2) Strong online channels and solid mobile terminal advantages; 3) Through independent research and development of financial technology core competitiveness, cost advantage advantages are developed.
In terms of institutional business, M & A and restructuring was the starting point to create a versatile investment bank.
The company’s M & A and restructuring business has become the market’s leading brand. With restructuring, the company continues to advance its full-service chain strategy, and its IPO,南宁桑拿 refinancing, and bond underwriting have made significant progress.
Looking ahead, the competitive advantage will continue to benefit from clear strategic positioning and strong strategic execution capabilities. The company’s development pace is constantly accelerating. While maintaining the top echelon in the securities industry, it will also capitalize on investment banks and substitute advantages in the derivatives field.
1) Wealth management: Focusing on customer volume, channel advantages, and capital management product layout, the company ‘s successful acquisition of AssetMark will help the company expand its business platform and strengthen its technological advantages; 2) Investment bank capitalization: investment bank operations will improve comprehensive service capabilities and equityThe investment business reserves are abundant, and the performance contribution is steadily rising; 3) Derivatives: Prospective layout of derivative business qualifications, and expansion of business resource occupation.
Investment suggestion: Continue to be optimistic about the company’s development prospects in the field of wealth management. At present, the capital market should be more open. Partial innovation around institutional business and the development of wealth management business are the inevitable direction of the securities and securities industry. Continue to be optimistic about the company’s development prospects in the field of wealth management.
The company’s preliminary net assets for 2019-2021 are expected to be 12.
38 yuan, corresponding to 1 for PB.
47 times, located near the static PB hub of the company’s A-shares in 15H1-2018. At present, it is expected to further improve the room. Combined with the company’s future performance elasticity and profitability trend changes, taking into account the estimated premium of the leading securities firms, the company will be given a 2xPB estimated value in 2019.Reasonable value is 25.
4 yuan / share, according to the current AH premium ratio, the reasonable value of H shares is 16.
0 HKD / share.
Huatai Securities is given a “buy” rating on A shares and H shares.
Risk prompts further increase in transaction volume; equity market adjustments lead to continuous increase in stock pledged repurchase impairment losses; credit risk rises