\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Key elements of the report:
The company issued its annual report for 2021. In 2021, the company achieved an operating revenue of 13.094 billion yuan (YoY + 58.94%), a net profit attributable to the parent company of 8.553 billion yuan (YoY + 79.00%), and a net profit attributable to the parent company of 8.44 billion yuan (YoY + 79.15%) after deduction, with a performance growth exceeding expectations.
Key investment points:
Securities and fund businesses are flying together with strong performance growth momentum: the two major businesses of the company have achieved rapid growth: 1) the operating revenue of securities business is 7.687 billion yuan (YoY + 54.29%), of which the net revenue of securities brokerage business is 4.597 billion yuan (YoY + 51.62%), and the net interest revenue is 2.321 billion yuan, a year-on-year increase of + 51.08%. In 2021, the average daily turnover of Shanghai and Shenzhen stock markets was 1.06 trillion yuan, a year-on-year increase of + 24.73%, and the balance of two financial institutions at the end of the period was 1.83 trillion yuan, a year-on-year increase of + 13.17%. The growth rate of the company’s brokerage business and net interest income far exceeded the growth rate of market scale, reflecting the continuous improvement of the market share of brokerage business and margin trading business. 2) The operating income of fund consignment business was 5.073 billion yuan, a year-on-year increase of + 71.23%. In terms of sales scale, the company achieved fund sales of 2.24 trillion yuan (YoY + 42.03%) in 2021, including non monetary fund sales of 1.34 trillion yuan (YoY + 47.85%). In terms of retention scale, according to the data of the fund industry association, by the end of 2021q4, the retention scale of Tiantian fund non money market public funds and stock + hybrid funds were 673.9 billion yuan / 537.1 billion yuan respectively, ranking third among third-party fund consignment institutions, with a month on month increase of 16.53% / 10.95% respectively. The company’s Tiantian fund platform has the advantages of high-quality user resources and brand image, showing strong drainage strength. In 2021, the dau of Tiantian fund reached 3.147 million, a year-on-year increase of + 24.99%, and the ecological advantage was further highlighted.
Profitability was significantly improved, and R & D investment continued to increase: 1) in 2021, the company’s expense ratio decreased by 3.48 PCT year-on-year, of which the sales expense ratio and management expense ratio decreased by 1.37 PCT and 3.69 PCT year-on-year respectively, mainly due to the scale effect brought by the rapid expansion of the company’s business, driving the net profit margin to 65.32%, up + 7.32 PCT year-on-year. 2) The R & D investment reached 720 million yuan, and the R & D expense rate increased by 0.94 PCT to 5.53% year-on-year. The company continued to increase research and development in big data, artificial intelligence and other technologies to further consolidate the ecological advantages of Internet wealth management. 3) The financial expense ratio was 1.06%, with a year-on-year increase of 0.65 PCT, mainly due to the interest expense of the convertible bond “dongcaizhuan 3” issued by the company, which was + 93.41% year-on-year.
Profit forecast and investment suggestions: the market share of the company’s securities brokerage business continues to increase, and the fund consignment business maintains a leading position. With the scale effect of business expansion, the company’s performance is expected to maintain high-speed growth by adding the advantages of the company’s head platform traffic, R & D investment and capital strength. It is estimated that the company’s revenue in 22-24 years will be 159.131971123611 billion yuan respectively, EPS will be 0.93/1.17/1.42 yuan respectively, and PE will be 28.04x/22.21x/18.28x respectively corresponding to the closing price of 25.99 yuan on March 18, maintaining the rating of “overweight”.
Risk factors: macroeconomic slowdown; The scene of capital market is less generous than expected; Industry competition is further intensified; The increase of the company’s market share was less than expected.
