China Merchants Securities (06099) announced interim results. Net profit of 4.748 billion yuan increased 0.44% year over year

According to the Zhitong Finance App, China Merchants Securities (06099) announced interim results for the six months ended June 30, 2024. The group obtained total revenue, other revenue and revenue of 14.362 billion yuan (RMB, same below) during the period, a year-on-year decrease of 8.25%; net profit to mother of 4.748 billion yuan, an increase of 0.44%; and basic earnings per share of 0.51 yuan.

The announcement stated that during the reporting period, the company was customer-centered and continued to deepen the transformation of its wealth management business. Coordinate incremental customer development and customer inventory discovery, actively carry out online and offline integrated management, continuously improve service efficiency and customer experience through digitalization of service content, service processes, and management mechanisms; at the same time, continue to strengthen the professional capacity building of the wealth advisory team, optimize the wealth advisor empowerment system, and comprehensively improve the quality and efficiency of customer service. By the end of June 2024, the number of regular trading customers of the company was 184.306 million, an increase of 7.53% over the previous year; the asset size of custodian customers was 3.60 trillion yuan, down 3.23% from the end of 2023. According to Yiguan Qianfan's statistics, in the first half of 2024, the average number of monthly active users (MAU) of the China Merchants Securities app increased 6.25% year-on-year, ranking 5th in the securities industry, and ranked 1st in the securities industry in terms of the length of time per app user per day.

In terms of futures brokerage business, in the first half of 2024, the listing of new products in the futures market progressed steadily, major domestic commodity futures exchanges adjusted their handling policies, and the futures industry continued to improve its professional capabilities to help the high-quality development of the real economy. During the reporting period, the cumulative turnover of the Chinese futures market was 3.460 billion lots, down 12.43% year on year, and the cumulative turnover was 281.51 trillion yuan, up 7.40% year on year. As of the end of June 2024, customer equity in the entire market was 1.39 trillion yuan, down 2.09% from the end of 2023. The entire industry's handling fee revenue for the first half of 2024 was 10.355 billion yuan, a year-on-year decrease of 2.53%. During the reporting period, China Merchants Futures actively responded to challenges, strengthened marketing service capacity building, and increased transactional customer development; continuously improved its ability to serve the real economy, actively expanded industrial customers, and steadily promoted risk management business development; improved the asset management product system, built a CTA+ futures asset management brand, and continuously improved its wealth management capabilities. As of the end of the reporting period, China Merchants Futures clients' equity was 27.280 billion yuan.

During the reporting period, the company closely followed market changes, strengthened internal collaboration, actively carried out product and service innovation, quickly responded to customer needs, accelerated customer service system construction, and continued to improve customer development and reserves. The company steadily carries out stock pledge business, effectively balances risk and benefits, continuously optimizes the business structure, and has excellent asset quality. As of the end of June 2024, the company's financing balance was 74.923 billion yuan, and the maintenance guarantee ratio was 264.87%; the balance of stock pledge repurchase business (including the asset management plan funded business) was 21.352 billion yuan, and the overall performance guarantee ratio was 194.17%, of which the balance of own capital investment was 16.942 billion yuan, and the overall performance guarantee ratio was 239.37%.

During the reporting period, the company comprehensively promoted the high-quality development of institutional customer business, optimized and improved marketing services, accelerated the implementation of the institutional account manager system and the digital construction of institutional business, and built a one-stop institutional customer service system. In terms of implementing the institutional account management system, we will deepen the overall linkage and collaboration business management mechanism, improve the institutional account manager assessment system, and improve the quality of team service by optimizing business processes. In terms of institutional customer base marketing services, we focus on core customer services such as public offering and insurance, and actively implement the integration of research services to improve customer reach efficiency; at the same time, we are also focusing on expanding the scale of ETF and brokerage settlement businesses and cultivating new growth points for institutional business. The private equity business stabilizes stock, expands growth, improves the “headquarters-branch-sales department” three-dimensional marketing system, and further enhances the comprehensive service advantages of private equity customers. The company continues to increase investment in the digital construction of institutional business, strengthen the digital operation and management of institutional business, deeply empower business development, and launch a “smart certification” institutional service platform to enhance the one-stop service experience for institutional customers by building a unified brand, unified operation and integrated service model. By the end of June 2024, the company's transaction coverage rate for key private equity fund managers with a management scale of 5 billion yuan or more reached 80%, and the volume of assets traded by private equity clients decreased by 7.95% compared to the end of 2023.

During the reporting period, the underwriting amount of the company's equity business declined year-on-year, but as the company actively grasped the issuance time window, the share underwriting amount and the ranking of the number of households increased year-on-year. According to Wind statistics, in the first half of 2024, the company's A-share lead underwriting amount and number of lead underwriters ranked 7th and 10th in the industry respectively. Among them, the company's IPO and refinancing underwriting amount ranked 8th and 7th in the industry respectively. According to Bloomberg statistics, the company completed a total of 2 Hong Kong stock IPOs, with an underwriting amount of US$48.89 million. The company continues to vigorously develop technology finance and green finance, helping 3 companies in related industries complete A-share financing, with an underwriting amount of 4.782 billion yuan.