\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Event: the company released its annual report, and achieved a total operating revenue of 13.094 billion yuan in 2021, a year-on-year increase of + 59%; The net profit attributable to the parent company was 8.553 billion yuan, a year-on-year increase of + 79%; The net assets attributable to the parent company were 44.04 billion yuan, a year-on-year increase of + 32.8%.
Key investment points
The performance is in line with expectations. With the rapid development of the equity market, Dongcai's performance continues to maintain a high growth: 1) in 2021, the average daily stock based trading volume of the market reached 1133.9 billion yuan, a year-on-year increase of + 25.5%; By the end of 2021, the balance of dual financing in the market had reached 1832.2 billion yuan, up + 13% from the end of 2020; According to the statistics of the association, the ownership scale of non monetary funds in the whole market reached 16.09 trillion yuan, of which the ownership scale of equity funds reached 8.63 trillion yuan, with a year-on-year increase of + 35.94% / 34.45% respectively. 2) In the golden age of the equity market, the company's fund and securities business maintained a high growth, and the scale effect continued to appear. In 2021, the net profit attributable to the parent company of China stock market news increased by + 79% year-on-year to RMB 8.553 billion; In the Q4 single quarter of 2021, the net profit attributable to the parent company reached 2.319 billion yuan, a month on month increase of - 7.5% and a year-on-year increase of + 68.0%. In 2021q1 / Q2 / Q3 / Q4, the net profit margin attributable to the parent company was 66.1% / 62.8% / 65.0% / 67.0% respectively. The scale effect of the company's Internet was further strengthened, driving the roe in 2022 to 22.16% (2020: 17.58%).
The good trading direction drives the high growth of retail securities performance, and the growth rate of fund ownership leads the industry: 1) thanks to market activity and user advantages, Dongcai brokerage and Liangrong business continue to maintain high growth. Under the background of active market trading, the net income from handling fees and commissions of Dongcai reached 5.369 billion yuan, a year-on-year increase of + 56%; By December 2021, the share of stock trading market in Tibet had reached 3.51% (the overall share of Dongcai securities was higher), driving the net income of Dongcai brokerage business to + 52% year-on-year to 4.597 billion yuan; The market continued to improve, driving the company's net income from futures business to increase by 87% year-on-year to 706 million yuan. In 2021, the company's net interest income reached 2.321 billion yuan (year-on-year + 51%), of which the two financial markets accounted for 2.37% (1.86% in 2020), driving the two financial interest income to + 7.1 to 2.47 billion yuan year-on-year; In 2021, the company increased the investment scale of other creditor's rights by 14 billion yuan (accounting for 7.58% of the total assets), promoting the interest income of other creditor's rights to reach 260 million yuan. 2) The company's fund consignment income continued to rise, and wealth management demonstrated high growth. More than 60% of the company's fund business income comes from the tail Commission and sales service fee for fund sales on a commission basis. By the end of 2021, the holding scale of Tiantian fund equity public offering fund had increased by + 10.95% to 537.1 billion yuan month on month, with a market share of 6.22%, surpassing Industrial And Commercial Bank Of China Limited(601398) , ranking third in the industry for the first time. The steady increase in ownership led to the sales revenue of Dongcai Fund + 71% year-on-year to 5.07 billion yuan. Residents' wealth continues to grow + Internet users continue to expand. We expect the ownership of Dongcai fund to increase steadily.
Under the market shock, the company's business shows high growth and is optimistic about the new era of wealth management: 1) the landing of convertible bonds and the improvement of capital strength. On January 24, 2022, "Dongcai Zhuan 3" triggered strong redemption conditions, and the company decided to exercise the redemption right. On March 9, "Dongcai Zhuan 3" was officially delisted. We believe that the landing of convertible bond boots will bring further capital supplement to the company (15.8 billion yuan), which is expected to promote the high growth of credit and investment business; 2) In the downward trend of market shock, the equity market remains stable and optimistic about the new era of wealth management. Since 2022, affected by the macro environment, the Chinese market has remained depressed, but the fund scale has remained stable. According to wind statistics, as of March 18, 2022, the net asset value of equity funds reached 8.7 trillion yuan, an increase of 1.69% over the beginning of the year. According to China Fund News, as of March 9, Tiantian fund had bought more than 20 billion yuan in 2022. With the gradual recovery of the macro environment, we are optimistic about the company's three natural core advantages of high flow, low cost and high-quality service in the field of wealth management.
Profit forecast and investment rating: China's capital market has entered the golden development cycle, and the company's wealth management business will enter a good development period. We basically maintain the forecast of net profit attributable to the parent company from 2022 to 2024 of RMB 11. Shenzhen Topband Co.Ltd(002139) .59/17.686 billion, corresponding to EPS of RMB 1.00/1.27/1.61 from 2022 to 2024; The current market value corresponds to 26.01/20.50/16.18 times of P / E from 2022 to 2024, maintaining the "buy" rating.
Risk tips: 1) fierce competition in the fund consignment market; 2) Dongcai securities market share rose less than expected. 3) The macro economy is less than expected.
