\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Core conclusion
The performance growth is in line with expectations. The performance growth mainly benefits from the improvement of market activity and the growth of fund ownership scale. In 2021, the company achieved revenue / net profit attributable to parent company of 13.1 billion yuan / 8.55 billion yuan, yoy + 58.9% / yoy + 79%; Weighted average roe22 1%； EPS is 0.83 yuan, yoy + 73%. The 21q4 net profit of the company is 2.32 billion yuan, yoy + 68% / qoq-7.5%. The income of securities business / information technology service business (Tiantian Fund) was 7.69 billion yuan / 5.4 billion yuan respectively, yoy + 54.3% / + 66.8%, accounting for 58.7% / 41.2%. The company’s net profit margin rose to 65.3%, yoy + 7.33pcts. We judge that with the growth of the company’s revenue and the continuous improvement of profit margin, the scale effect will be realized.
The holding scale of fund sales increased rapidly and the market share continued to increase. In 2021, the company’s fund subscription (purchase) (including fixed investment) transactions / fund sales / single sales amount reached 370 million / 2.24 trillion yuan / 5977 yuan respectively, yoy + 87.2% / + 72.5% / – 7.9%; The sales scale of non commodity public funds was 1.34 trillion yuan, yoy + 91.7%, and the single sales was 4214 yuan, yoy-1.33%. At the end of the period, the holding scale of non commodity public funds of Tiantian fund was 673.9 billion yuan, accounting for 8.1% of the market, ranking third; The number of daily active users reached 3.147 million, and the number of daily active users on trading days / non trading days reached 3.9481/1.5512 million respectively.
Benefiting from the improvement of market activity, the performance of China stock market news securities achieved high growth, and the market share of brokerage and two financial services continued to increase. 1) The net income from brokerage business was 4.6 billion yuan, yoy + 51.6%, which was higher than the stock based turnover in Shanghai and Shenzhen (YoY + 25.3%), and we expect the stock based market share to increase to 4.16%. 2) At the end of the period, the balance of two financial institutions was 41.66 billion yuan, yoy + 41.7%, the market share was 2.27%, yoy + 0.46pct. We believe that with the replenishment of the company’s capital after the conversion of convertible bonds into shares, the market share of capital use businesses such as Liangrong is expected to increase. 3) The contribution performance elasticity of proprietary business. In 2021, the company realized a self operated investment income of 1.01 billion yuan, yoy + 221%, and the annualized return on investment was about 3.34%.
Investment suggestion: it is estimated that the net profit attributable to the parent company of China stock market news from 2022 to 2024 will be RMB 106.39/133.24/16.529 billion respectively, yoy + 24.4% / + 25.2% / + 24.1%. The current share price corresponds to 27 times of PE in 2022, which is below the historical center. The company is the core target of wealth management track, with obvious competitive advantage and better growth potential than its peers. It is expected to usher in valuation repair and maintain the “buy” rating.
Risk tip: the prosperity of the securities market fluctuates, the competition in the fund consignment industry intensifies, and the policy risk
