EQS-News / 21/08/2019 / 10:34 UTC+8
[To: Business Editor][For Immediate Release]
/
Guotai Junan International Announces 2019 Interim Results
_Interim Revenue Recorded Historic High
Dividend increased by 27% YOY_
[20 August 2019, 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 2019 (the "*Period*"). During the period, benefiting from the
Group's favorable performances of its debt and equity capital market
("*DCM*" and "*ECM*"), brokerage and other businesses, the Group recorded a
total revenue of HKD2,360 million approximately, representing an increase of
41% as compared with the same period of last year. The profit attributable
to shareholders amounted to HKD640 million, representing a YOY growth of
approximately 26% as compared with first half of 2018 and a HOH surge of
120% as compared with second half of 2018. The annualized return on equity
(ROE) of the Group rose by 4 percentage points to 12% year-over-year. The
Board has declared an interim dividend of HKD0.042 per ordinary share, up by
27% YOY, with the same payout ratio as last year of 50%.
*Income Statement* *1H2019* *1H2018* *YOY * *HOH**
Fee and commission (HK$'000) (HK$'000)
Brokerage 291,667 271,437 7% 59%
Corporate finance - debt 324,536 258,439 26% 44%
capital markets
Corporate finance - equity 92,778 59,875 55% 406%
capital markets
Corporate finance - 35,245 17,041 107% 115%
Consultancy and financial
advisory fees
Asset management 10,215 10,561 -3% 66%
Income from loans and 558,649 716,824 -22% -5%
financing
*Income Statement (Continued)* *1H2019* *1H2018* *YOY * *HOH**
Gain from financial products, 1,050,158 344,038 205% 257%
market making and investments
Revenue 2,363,248 1,678,215 41% 77%
Profit attributable to 638,856 506,841 26% 120%
shareholders
Dividend payout ratio 50% 50% same same
ROE(Annualized /Actual) 12% 8% 4 p.p. -
_* Compared with the second half of 2018_
*Revenue structure: balanced and diversified *
Benefiting from the strategic adjustment in recent years, the Group's
revenue structure has become more balanced and diversified during 1H2019.
Among all, the fee and commission income, interest income and investment
income accounted for 34%, 33% and 33% of the total revenue, respectively.
During the period, with a steady growth in corporate finance and brokerage
business, the Group recorded a fee and commission based income of HKD790
million, up by 18% YOY, which is in line with the Group's sustainable
development strategy as a financial service provider.
*Revenue Category * *Percentage (%)* *Notes:*
Fee and commission 34% Fees from:
Corporate Finance;
Brokerage;
Asset Management;
Part of Financial Products
business.
Interest 33% Interest Income from:
1) Retail clients and banks
in "Loans and Financing"
business;
2) Institutional and
high-net-worth clients in
"Financial Product"
business.
Investments 33% Investment Income from:
1) Market Making (to
facilitate Debt Capital
Market (DCM) business);
2) Investments in equity
and debt securities (to
facilitate Asset Management
and other businesses).
*Wealth management platform approached perfection as the brokerage business
rose against market trend*
Although the average daily turnover of Hong Kong stock market fell by 23%
HOH during the Period, the Group's brokerage business grew by 7.5% YOY to
approximately HKD292 million, against the market trend. During the period,
the Group optimized the construction of the wealth management platform
constantly by expanding and improving its team size and services and product
lines, which brought to the Group a large number of high-net-worth clients
and high-quality assets. In the first half of 2019, the Group recorded a
total amount of client assets under custody HKD235 billion, up by
approximately 40% from the end of 2018. As the number of professional
investor clients increased steadily, its average account balance grew by 61%
to HKD52.01 million from the end of last year.
*DCM business maintained leadership in market*
During the Period, the Group continued to maintain its leadership in the
Hong Kong debt capital market, recording a historic high with its revenue in
this segment increasing by 26% YOY to HKD320 million. The Group's debt
securities underwriting team has participated in a total of 106 debt
issuance activities throughout the first half of year (1H 2018: 76),
successfully assisting corporations to raise fund of nearly HK$244.8 billion
in the bond market, up by 48% YOY. According to Bloomberg, the Group ranked
second and third in the Asia (ex-Japan) G3 Currency Corporate High-Yield
Bond Underwritten League, in terms of number and amount underwritten
respectively. Meanwhile, given that the US dollar-denominated bonds issued
by the Chinese corporates have been witnessing a continuously rally, the
Group's revenue from market making business increased to approximately
HKD500 million (1H 2018: loss of approximately HKD47 million).
*ECM business grew significantly amid market downturn*
During 1H 2019, the Hong Kong stock market witnessed a decline of 25% in
fundraising amount, despite which the Group's ECM along with consultancy and
advisory business recorded significant growth in revenue, up by 66% YOY to
HKD130 million. During the Period, the Group completed 15 equity
underwriting projects (5 of which were IPO sponsorship projects),
representing a growth of 50% YOY and introducing quality projects to the
capital market of Hong Kong, such as China Risun (1907.hk), Aoyuan Healthy
(3662.hk) and Zengame (2660.hk),etc.
Looking forward, the Group will proactively seize the opportunities arising
with China's economic growth and the further opening of the market, by
developing its wealth management platform with full efforts and boosting the
synergy between different business units, thus leveraging core competencies
and providing full-range and one-stop services and products for investment
and financing to its clients under a comprehensive and prudential risk
management system. The Group will adhere to its core objective to increase
risk adjusted return on capital and reward the clients and investors for
their long-term support with a steady, sustained and high compound growth.
-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 core services
include: wealth management, brokerage, corporate finance, loans and
financing, asset management and financial products.
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 and Standard & Poor respectively.
The controlling shareholder, Guotai Junan Securities Company Limited (Stock
Code: 601211.SS; 2611.HK), is the comprehensive financial provider with a
long-term, sustainable and overall leading position in the Chinese
securities industry. Backed by strong operational support, the Company will
be able to further explore the HK and the Asia-Pacific market, aiming to
become an important financial institution with market influence in the
region.
For more information about Guotai Junan International: http://www.gtjai.com
[1].
Document: http://n.eqs.com/c/fncls.ssp?u=SIDICJVWSD [2]
Document title: Guotai Junan International Announces 2019 Interim Results
Interim Revenue Recorded Historic High Dividend increased by 27% YOY
21/08/2019 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
August 20, 2019 22:34 ET (02:34 GMT)
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