Northeast Securities (000686) 2019 first quarter performance review: net profit growth attributable to mother tripled

Northeast Securities (000686) 2019 first quarter performance review: net profit growth attributable to mother tripled

Key points of investment: Net profit attributable to mothers grows more than 3 times per year.

In the first quarter of 2019, the company’s operating income was 22.

76 trillion, an annual increase of 140.

70%; net profit attributable to mother 5.

68 ppm, an increase of 327 per year.

30%; basic profit income is 0.

24 yuan, an annual increase of 300.

00%; ROE (expected average) is 3.

75%, an increase of 2 each year.

90 pct.

Thanks to the rebound in the securities market, the company’s net income from brokerage business and the fair value of transactional financial assets increased significantly, and net profit attributable to mothers increased by more than three times.

  Brokerage, net income from self-operating income increased greatly.

In the first quarter of 2019, due to the increase in market turnover and the overall growth of securities, the company’s brokerage and proprietary business net income (net investment income-investment income to associates and joint ventures + net open hedge income + fair(Net income from value changes) increased significantly, increasing by 27 respectively.

68% and 370.

42%, of which net income from fair value movement increased by 953.


  Investment banks, asset management and credit business net income fell significantly.

The first quarter of 2019: the securities market share decreased, while the company only had bond underwriting income and no equity underwriting income, contrary to the same period last year with only equity underwriting income and no bond underwriting income, which caused the company’s investment banking net income to decrease by 29%.

34%; the scale of the company’s entrusted assets 成都桑拿网 decreased significantly, and net income from asset management business decreased by 39.

71%; As interest expense is greater than interest income, the net income of credit business in the current period is negative, compared with the same period last year.

  Revenue from spot trading increased significantly.

In the first quarter of 2019, the company’s other business income8.

6.6 billion, an increase of 178.

84%, mainly due to the increase in the revenue of spot trading business of futures subsidiaries.

The company newly added and vigorously developed the spot trading business in 2016. From 2016 to 2018, the revenue of the spot trading business increased rapidly, which was reflected in the income or growth rate of other business was 1863%, 486% and 102%, respectively.Generate total contributions, the proportion of the proportion of revenue in the period is 7 respectively.

01%, 37.

33% and 54.


  Brokerage, self-employed and spot business revenues are revenue relays.

In the first quarter of 2019, the company’s brokerage, investment bank, asset management, credit, self-employed and other business revenues accounted for 10 respectively.

28%, 1.

85%, 1.

05%, -1.

93%, 46.

40% and 38.

05%, of which the brokerage, self-employed and corporate business revenue accounted for the total revenue share of the three businesses in the period from 2017 to the first quarter of 2019 all exceeded 80%, indicating that the company’s revenue is dependent on personal business.

  Investment suggestion: Give a cautious recommendation rating for the first time.

Benefiting from the recovery of the securities market, the company’s net profit attributable to its mother increased by three times in the first quarter of 2019, and its performance rebounded strongly.As of April 25, 2019, the company’s PB was 1.

60 times, it is estimated to be at a historical low, and it is estimated that there is already room for upwards.

  risk warning.

The economy exceeded expectations, the stock market fell sharply, and the stock market’s trading volume shrank sharply.