\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
The net profit attributable to the parent company increased by 79% year-on-year, the high growth continued to be realized, the core business had both flow and viscosity advantages, and the market share accelerated. The capital capacity has been continuously enhanced to help improve the wealth management ecology and continue to enjoy high growth. The redemption risk of convertible bonds was cleared, the valuation fell to a low level, and the purchase rating was maintained.
High growth continues to be verified. In 2021, the company achieved a total operating revenue of 13.1 billion yuan and a net profit attributable to the parent company of 8.6 billion yuan, with a year-on-year increase of 59% and 79% respectively, and the roe increased by 4.6 percentage points to 22.2% year-on-year. Securities services, fund sales, financial data services and advertising services accounted for 59%, 39%, 2% and 1% respectively, and the proportion of fund sales increased by 3%.
Fund sales have both “flow” and “Stickiness”, and the growth of brokerage and financial services has accelerated. 1) The flow advantage of Tiantian fund platform was further expanded. The number of daily activities in 2021 increased by 33% compared with that in 2020, and the sales of non commodity based products increased by 92%, breaking through 1.3 trillion yuan. At the same time, the stickiness of fund sales business is prominent. Despite fluctuations in the issuance of public funds and the activity of platform users, the scale of the platform continued to grow, and the market ranking increased from No. 5 in Q1 to No. 3 in Q4. At the end of the year, the shares of non commodity based and stock mixed funds in the top 100 institutions were 8.1% and 8.3% respectively. 2) The market share of brokerage and two financing businesses also accelerated. The market share of net income from agency trading (including seat leasing of trading units) increased by 80bp to 3.32%, and the market share of funds raised from margin trading business increased by 45bp to 2.27%.
Financing and capital increase strengthen capital strength and help the sustainable improvement and growth of ecology. 1) R & D expenses increased by 91%, significantly increasing R & D investment. According to the annual report, the company will further enhance the strength of the R & D team. With the expansion of fund management business, the net income increased by 105% year-on-year, the pilot of fund investment adviser was approved, the online competitiveness continued to increase, and the number of offline branches increased to 186, which is expected to continuously improve the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integrated wealth management ecology. 2) Trading financial assets expanded by 170%, and the income from investment business also increased from 290 million yuan to 1 billion yuan. 3) The company raised funds through convertible bonds and US dollar bonds, and its total assets increased by 68% over the beginning of the year. The company announced that it would increase the capital of its securities subsidiaries by 16 billion yuan, further strengthen its capital strength and comprehensive competitiveness, and is expected to help the continuous expansion of its business.
Profit forecast and valuation
The company has both flow and viscosity advantages, which is expected to help continuously improve the market share, continuously strengthen the core competitiveness of science and technology, improve the wealth management ecology, support the expansion of investment business and overseas business, and jointly promote the high growth of performance. According to the latest performance, it is predicted that the net profit attributable to the parent company in 22 / 23 / 24 years will be 11 / 135 / 16.2 billion yuan, maintaining the buy rating.
Risk tips
The impact of the policy on the industry exceeded expectations; The dual impact of market fluctuations on industry performance and valuation.
