Minmetals Capital (600390): The combined net profit of trust, leasing and securities businesses in 2019 is expected to increase gradually34.

5% maintain Buy rating

Minmetals Capital (600390): The combined net profit of trust, leasing and securities businesses in 2019 is expected to increase gradually34.

5% maintain Buy rating

Event: The company disclosed the audited financial statements of Minmetals Trust, Foreign Trade Leasing, Minmetals Securities 2019 Annual Report, and the consolidated net profit is expected to increase in the future.

5%, performance in line with expectations, profitability significantly reached the industry average, optimistic about the company’s 2020 performance continued steady growth.

Trust performance volume and price rose, ROAE reached 16.

1%.

Minmetals Trust gradually realized total operating income of 41.

56 ppm, an increase of 41 in ten years.

67%; long-term net profit of 21.

40,000 yuan, an increase of 22 in ten years.

32%.

Of which: 1.

Trust business process fee income grows 47 per year.

4% to 35.

At 3 trillion, we estimate that the trust assets at the end of the period will reach 8,500 trillion, a 42% increase from the end of the previous year, and our estimated average annualized return on trust is about 0.

49% (0 for the same period last year.

42%), both volume and price increased thanks to the company’s continuous increase in the scale of active management, continuous optimization of its business structure, and the rapid growth of consumer finance business led to the proportion of active management scale increased to more than 70%.

2.

The scale of inherent business increased compared with the end of last year.

5% to 182.

3.7 billion.

  The slower growth rate of profits than the growth rate of revenues is mainly due to the increase in management expenses every year 123.

8% to 13.

The management fee rate is 12 trillion from 20 in 2018.

0% increase to 31 in 2019.

6%.

Minmetals Trust’s 2019 ROAE is 16.

1%, is expected to be 17 from 2020 to 2021.

3% and 17.

6%.

The interest margin of the leasing business is stable.

Foreign trade leasing gradually realized total operating income of 41.

78 ‰, a decrease of 3 per year.

94%; long-term net profit 杭州桑拿 of 7.

51 ppm, an increase of 10 in ten years.

14%.

By optimizing the financing structure and reducing financing costs, foreign trade leasing has achieved a steady increase in net profit. The company’s estimated interest-bearing budget has continued to decline.

From 6% to 409 ppm, the net interest margin is about 1.7%, ROAE for foreign trade leasing in 2019 is 8.
.

01%, an increase of 0 compared with the same period last year.

For the 34 averages, we expect the company’s net profit to be 8 from 2020 to 2021.

75 and 9.

2.1 billion.

The new leadership of the securities business is in place, and future growth is expected.

Minmetals Securities gradually realized revenue13.

770,000 yuan, an increase of 70 in ten years.

74%, mainly due to securities brokerage business income, investment bank business income and net interest increased by 27%, 201% and 589%, respectively; net profit achieved3.

19 ppm, an increase of 31 in ten years.

82%.

In December 2019, the Shenzhen Securities Regulatory Bureau approved Guo Zelin as the chairman of the board of directors of Minmetals Securities, and he is optimistic about the company’s new leadership team to build a unique marketplace with mature market mechanisms and outstanding industrial background advantages.

Investment suggestion: The company’s core subsidiaries’ profitability will significantly expand the industry average, and they are optimistic that the company’s 2020 performance will continue to grow steadily.

It is expected that the company’s net profit attributable to the parent from 2019 to 2021 will be 30.

62, 33.

44 and 37.

04 (Last forecast was 30.

77, 35.

05 and 38.

1.9 billion), the previous growth rate was 36.

1%, 9.

2% and 10.

8%, ROE is 9 respectively.

1%, 9.

2% and 9.

4%.

Combined with listed peers, the average is given to Minmetals Trust.

25 times PE estimate.

Minmetals Securities, foreign trade leasing and Minmetals Jingyi Futures, we all give a relatively conservative 1x PB and get the company’s reasonable target city ranking 478.

3 ppm, currently corresponding to 19 PB in 1-21.

04, 0.

97 and 0.

89 times, maintain BUY rating.

Risk warning: the scale of the trust shrinks, the equity market volume and price fall, the macro economy is down, and the commission rate continues to fall