Dow Jones received a payment from EQS/DGAP to publish this press release.
EQS-News / 24/08/2017 / 09:37 UTC+8
*Guotai Junan International Announced 2017 Interim Results: The Company
Achieved Historically High Profit, Dividend and ROE*
[23 August 2016, Hong Kong] *Guotai Junan International Holdings Limited*
("*Guotai Junan International*", "*the Group*" or "*the Company*", Stock
code: 1788.HK) today announced its interim results for the six months ended
30 June 2017 (the "*Period*").
*Corporate Finance and Financial Products were the major growth driver and
Dividend increased significantly*
Due to the Company's diversified business development strategy and the
recovery of Hong Kong stock market, Guotai Junan International demonstrated
strong and comprehensive financial services capability during the Period.
The revenue in the first half of the year recorded a 29% year-on-year
("*YoY"*) increase to HKD1,560 million while profit for the period rose 34%
YoY to HKD726 million. The annualized Return on Shareholders' Equity
achieved historically high level of 16.4%, which further consolidated the
Company's leading position among peers. The board of directors proposed an
interim dividend of HKD0.045 per share, with the dividend per share soared
by 50% YoY.
*(For the six months ended 30 June**)*
*2017 2016 Change
(HKD'000)* (HKD'000)
Revenue *1,559,958* 1,210,901 28.8%
Profit for the Period *726,052* 541,180 34.2%
Dividend per Share (HK cents) *4.50* 3.00 50.0%
Dividend payout ratio *46.0%* 38.0% 8.0 p.p
Return on Shareholders' Equity *16.4%* 12.3% 4.1 p.p
(Annualized/2016 Actual)
In the first half of 2017, income from corporate finance business recorded a
181% growth YoY to HK$442 million. During the Period, the Group's corporate
finance team completed 7 IPO projects, including Guotai Junan Securities
Company Limited ("Guotai Junan Securities", Stock code: 2611.HK/601211.SS),
the largest IPO project in the Period, and Jilin Jiutai Rural Commercial
Bank Corporation Limited (Stock code: 6122.HK) IPO project, the
fourth-largest IPO in the market. The Company served key roles as sponsor,
leading global coordinator and joint bookrunner. The Group ranked No. 1 for
the number of IPO deals as sponsor in Hong Kong market during the Period
(Source: Dealogic). In addition, the Group maintained its leading position
in debt capital market in Hong Kong. The Group completed 30 debt issue deals
and assisted corporates to raise HKD63.2 billion, marking a 2.6 times YoY
increase.
Income from financial products business increased significantly by 68.0% to
HK$104 million during the Period. The Group has greatly enhanced its
competitiveness and business capacity by taking advantage of its lower
funding cost and strong business partnership with large-scale international
financial institutions, providing clients with a wide range of tailor-made
financial products according to their needs and risk appetite.
Thanks to the on-going financial structure optimization and effective cost
management, the Group's financial expenses dropped 5% YoY to HK$163 million,
with cost-to-income ratio improved to 44% from 47% of the same period last
year. The net profit margin rose by 2 percentage points from the same period
of last year to 47%.
*High-Quality Clients rose significantly; the Company became a Chinese
financial institution with the leading credit ratings in Hong Kong*
For the first half of 2017, the Company has introduced "Jun Hong Wealth
Management (??????)" to Hong Kong, a leading securities services club brand
of its parent company, under which more sophisticated and customized
financial services are offered to its high net worth clients, including the
opportunities of meeting representatives of listed companies, preferential
financing interest rates, exclusive investment updates, etc., receiving
enthusiastic responses from our clients. The number of the Group's
professional investor clients has witnessed a tremendous increase of 125.0%
during the first 6 months of 2017 as compared to the end of last year.
Overall, the Group has successfully recruited almost 2,000 high-quality new
clients with an average account balance reaching approximately HK$8 million,
soared by approximately 4 times compared to last year.
Aside from the rapid growth in the Company's financial results, the Group
stood firm on maintaining a prudent risk management model. As the Group's
credit ratings were upgraded, it has became a Chinese financial institution
with the leading credit ratings in Hong Kong. In February 2017, Moody's
Investors Service raised the Group's individual rating to "Ba1"; while in
June, the S&P Global Ratings raised the Group's long-term issuer rating to
"BBB+".
On the other hand, the Company adopted the new HKFRS 9 (Hong Kong Financial
Reporting Standards) accounting standards ahead of schedule as well as of
its peers, under which its financial conditions can be presented in a more
comprehensive way, and effectiveness of the risk management system can be
seen more clearly.
*Dr. Yim Fung, JP, Chairman and CEO of Guotai Junan International, said,
"Guotai Junan International* has reaped fruitful results in the first half
of 2017, with record high revenue and profit. The Company has obtained the
leading credit ratings among peers, and managed to attract a number of high
net worth clients. The Company's stable risk management system continued to
provide a solid foundation of our business growth. In the second half of the
year, even with uncertain factors such as increasing interest rate in the
United States and global deleveraging trends, the inclusion of A shares to
MSCI index and the establishment of stock and bond connect mechanism are
still beneficial to the Company's business in the long run. We will grasp
these favorable opportunities and assist the Mainland enterprises in
overseas financing under different market environment, facilitating
cross-border investment between the Mainland and overseas investors. We are
confident in becoming a financial service provider and wealth management
expert who aims at optimizing customer returns and providing tailor-made
financial products and services."
End
*About Guotai Junan International Holdings Limited*
*Guotai Junan International* is the market leader and first mover for
internationalization of Chinese Securities Company. The Company is the first
Chinese securities broker to list on the Main Board of The Hong Kong Stock
Exchange by way of initial public offering. Based in Hong Kong, the Company
provides diversified integrated financial services. The five core services
include: (i) brokerage, (ii) corporate finance, (iii) loans and financing,
(iv) asset management, (v) financial products, market making and
investments.
The Company's online trading platform support a total of 8 stock markets,
including Hong Kong, USA, UK, Japan, Canada, Singapore, China A share and B
share, as well as more than 20 futures and options markets worldwide,
providing leveraged foreign exchange trading for 8 currency pairs and 21
cross-currency pairs, inclusive of CNH.
The Company is one of the constituents of HSCI, Hang Seng Composite LargeCap
& MidCap Index, FTSE HK index and FTSE HK ex H share index. Guotai Junan
International has been assigned "Baa2 / Prime-2" and "BBB+ / A-2" rating
from Moody's Investor Service and Standard & Poor's Global Ratings
respectively.
Our controlling shareholder, Guotai Junan Securities Company Limited
("Guotai Junan", Stock Code: 601211.SH; 2611.HK), is one of the China's
leading securities houses. In 2015, Guotai Junan was listed on the Shanghai
Stock Exchange. In April, 2017, it was listed on the Main board at Hong Kong
Stock Exchange. In 2016, Guotai Junan ranked the second among Chinese
brokers in terms of revenue and net profit. Backed by strong operational
support, the Company will be able to further explore the HK and the
Asia-Pacific market.
For more information about Guotai Junan International:
http://www.gtja.com.hk [1].
Document: http://n.eqs.com/c/fncls.ssp?u=GUUYJCGUEE [2]
Document title: Guotai Junan International Announced 2017 Interim Results:
The Company Achieved Historically High Profit, Dividend and ROE
24/08/2017 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
Media archive at www.todayir.com
1: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=77b9878683717c5c0d888227ac5688ce&application_id=603677&site_id=vwd&application_name=news
2: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=cc10850f4cbf7bdbd04a6e5b9bf3f4af&application_id=603677&site_id=vwd&application_name=news
(END) Dow Jones Newswires
August 23, 2017 21:37 ET (01:37 GMT)
© 2017 Dow Jones News
