1. First of all, the overall growth rate of the company's business is at a high level among leading brokers, and the non-net profit is significantly higher than that of Guotai Junan (Guotai Junan's income exceeds 1 100 million from Shanghai Securities). The absolute level of net profit in the first half of the year is now second only to CITIC Securities (it is estimated that only Guangfa Securities has the opportunity to challenge Haitong Securities' second position).
Second, the company's operating performance is balanced, and all businesses have achieved year-on-year growth. Among them, the growth of investment banking business income of 45.6% is very significant. In the first half of the year, the investment banking business achieved a revenue of 3 billion yuan, significantly exceeding CITIC Construction, which ranked second last year (CITIC Investment Bank achieved a revenue of less than 2 billion yuan in the first half of the year, a slight decrease from the same period last year). In addition, the impairment loss of the equity pledge business that plagued the company in the same period last year has gradually returned to normal. The credit impairment loss in the first half of the year was about 6,543.8 billion yuan, significantly lower than the 2.9 billion yuan in the same period last year. In addition to the growth of business income, the sharp year-on-year decline in credit impairment losses is also one of the key factors to promote the growth of net profit.
2. Finally, the company's asset management business has also made significant progress. In the first half of the year, the operating income increased by 36.92% year-on-year, mainly due to the increase in management income of Haifutong fund business and Haitong open source private equity investment business. Guo Fu Fund, which holds 27.775% shares of Haitong Securities, doubled its income and profit in the first half of the year, which also contributed a good investment income to Haitong Securities.
3. At present, Haitong Securities has the lowest valuation among all head brokers, and the balanced growth of various businesses in the first half of the year will contribute to the improvement of the company's future valuation. Of course, Haitong Securities exceeded expectations on the basis of extremely low base last year. For a long time, there have been serious problems in the company's risk control. Last year, a large proportion of equity pledge business impairment and Yongmei's creditor's rights still plagued the company's business. The company's return on equity in the first half of the year was only 4.93%, which was still at a low level among the top brokers. Generally speaking, Haitong Securities business has recovered obviously, but relatively weak risk control is the obvious weakness of highly leveraged securities companies.