\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Event: on March 9, 2022, the company released the 2021 annual performance express, realizing a total operating revenue of 13.094 billion yuan, a year-on-year increase of 58.94%; The net profit attributable to the parent company was 8.553 billion yuan, an increase of 79% year-on-year, in line with the previous period
Forecast scope.
The high growth of performance in 2021 proves that the era of institutionalization continues to benefit. 1) In terms of revenue during the reporting period, the company achieved 13.094 billion yuan in 2021, a year-on-year increase of 58.94%, and 3.458 billion yuan in Q4, a year-on-year increase of 50.81%; In terms of net profit attributable to the parent company, the company achieved RMB 8.553 billion in 2021, with a year-on-year increase of 79%. In Q4, it achieved RMB 2.319 billion in a single quarter, with a year-on-year increase of 68.04%. Its performance increased again. 2) In terms of business, the company's fund trading volume of third-party sales service business and the holding scale of consignment fund increased significantly year-on-year, and the revenue of financial e-commerce service increased significantly year-on-year. According to the disclosure of China Securities Investment Fund Industry Association, as of 2021q4, the holding scale of Tiantian fund stock + mixed public offering fund was 537.1 billion yuan, an increase of 10.95% month on month; The holding scale of non money market public funds was 673.9 billion yuan, an increase of 16.53% month on month, once again becoming the fastest-growing platform among the top 10 consignment institutions. As a third-party head consignment platform, Tiantian fund has many years of traffic accumulation, outstanding brand effect and professional advantages. The tail Commission share of fund sales helps the company's fund consignment business to remain stable. With the increasing trend of long-term capital entering the market and institutionalization, the company, as the leader of Internet asset management, is expected to benefit for a long time. 3) In the same period, the stock trading volume of the company's securities business and the scale of margin trading and securities lending business increased significantly year-on-year, and the income related to securities business increased significantly year-on-year. According to the unaudited non consolidated financial statements of China stock market news Securities Co., Ltd. in 2021, China stock market news securities achieved a total operating revenue of 7.3 billion yuan, a year-on-year increase of 58.76%; The net profit was 4.825 billion yuan, a year-on-year increase of 66.89%. Among them, the net income from handling fees and commissions was 4.55 billion yuan, a year-on-year increase of 51.9%; Net interest income was 1.75 billion yuan, a year-on-year increase of 38.6%; Investment income and profit and loss from changes in fair value were 930 million yuan, a year-on-year increase of 223.1%, both of which achieved rapid growth. We expect that the market share of the company's brokerage business and two financing business will continue to increase, and self operated investment will also start to develop.
In the era of capital market, the Internet asset management leader of tens of millions of financial flows is still underestimated. 1) Over the years, the company has been deeply involved in the Internet financial information scene, accumulating about 10 million dau traffic on PC and 40 million Mau traffic on mobile. The biggest value of Internet companies is to form user time stickiness through scene value, while the company occupies the time of China's high-end financial crowd. In particular, at the end of 2019, the capital market policy entered the stage of encouraging development, and the company has huge financial business space. 2) According to wind data, the company's historical PE valuation range is 40-70x, and the adjusted profit forecast. The current market value (267.1 billion yuan on March 9, 2022) is still undervalued.
Maintain the "buy" rating. According to the key assumptions and recent announcements, the profit forecast is adjusted. It is estimated that the operating revenue of the company from 2021 to 2023 will be 13.094 billion yuan, 17.853 billion yuan and 22.321 billion yuan respectively (13.157 billion yuan, 17.942 billion yuan and 22.438 billion yuan in the previous period), and the net profit attributable to the parent company will be 8.553 billion yuan and 7.853 billion yuan respectively 12.026 billion yuan and 15.372 billion yuan (8.545 billion yuan, 12.018 billion yuan and 15.371 billion yuan in the early stage). Maintain the "buy" rating.
Risk warning: the proportion of financial business has not increased as expected; Internet giants intensify competition; Macroeconomic risk
