\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
On March 19, the company disclosed the annual report of 2021. In 2021, the company achieved a revenue of 13.094 billion yuan (+ 58.94%), a net profit attributable to shareholders of listed companies of 8.553 billion yuan (+ 79.00%), a net profit attributable to the parent company of 8.44 billion yuan (+ 79.15%) after deduction, and a basic earnings per share of 0.83 yuan (+ 72.92%). The company's roe22 in 202111%, an increase of 4.22 PCT over the same period last year.
The securities business has developed rapidly. In 2021, the company realized a securities business revenue of 7.687 billion yuan (+ 54.29%), accounting for 58.70% of the total operating revenue, a year-on-year decrease of 1.77 PCT. Among them, the brokerage business income was 6.489 billion yuan (+ 48.53%), and the interest income of two financing business was 2.467 billion yuan (+ 71.32%). At the end of the period, the balance of two financial institutions of the company was 43.407 billion yuan, accounting for 2.37% of the market, an increase of 0.54 PCT over the beginning of the year.
The scale of fund consignment is strong. The company's financial e-commerce service business mainly provides fund third-party sales services through Tiantian fund. In 2021, the company realized a fund sales service revenue of 5.073 billion yuan (+ 71.23%), accounting for 38.74% of the operating revenue, with a year-on-year increase of 2.78 PCT and a gross profit margin of 93.52%. By the end of the reporting period, the holding scale of non money market public funds of Tiantian fund was 673.9 billion yuan, an increase of 55.85% over the end of the first quarter of 2021; The holding scale of stock + mixed public funds was 537.1 billion yuan, an increase of 43.23% over the end of the first quarter, far exceeding the overall growth level of the industry. The ranking of fund holding volume of Tiantian fund also increased from the fifth to the third in the industry. In terms of fund sales, the company's fund sales in 2021 reached 2.24 trillion yuan (+ 72.49%), of which the sales of non monetary funds was 1.34 trillion yuan (+ 91.74%). The rapid growth of the company's fund sales business mainly benefits from the ecosystem of China stock market news. The marketing channel is not limited by time and space, and has a strong ability to obtain customers.
R & D investment has increased significantly to steadily expand the advantages of the Internet platform. The rapid growth of the company's securities business and fund consignment business largely benefited from the Internet platform and wealth management ecosystem. The daily average number of active users of the company's core fund trading platform Tiantian fund platform was 3.147 million (+ 33.32%), of which the daily average number of active users was 3.9481 million (+ 33.47%). In 2021, the company's R & D expenses reached 724 million yuan (+ 91.33%), accounting for 5.53% of the total operating revenue (+ 0.94pct). The company's R & D investment is mainly used to upgrade the company's we media interactive platform, data management platform, account opening and trading platform, etc., so as to improve the user experience. The substantial increase in R & D investment is conducive to the company's further improvement of scientific and technological empowerment and expansion of the customer acquisition advantages of its long tail customers.
Investment suggestion: the company's fund sales revenue increased significantly in 2021, and the scale of consignment sales entered the top three in the industry. With the advantages of convenient online access to Internet platform, deep cultivation of long tail customers and brand advantages, the company's wealth management transformation ranked among the top in the industry. In addition, the company obtained the qualification of pilot exhibition of public fund investment advisory business in 2021. It is expected that the company will form a wealth management + Internet characteristic securities firm. Meanwhile, the company announced on March 18 that the total amount of convertible funds raised by the company is 1.58 billion yuan, which is used to supplement the working capital of China stock market news securities. The company's capital strength is further strong, which is conducive to the development of credit and proprietary business in the future. We predict that the basic earnings per share of the company from 2022 to 2024 will be 0.93 yuan, 1.18 yuan and 1.50 yuan respectively, and the net assets per share will be 4.72 yuan, 5.80 yuan and 7.18 yuan respectively. Combined with the current leading position of the company in the industry and the development of various businesses of the company, the company will be given 40 times of PE, corresponding to the target price of 37.2 yuan. It will be covered for the first time and given a "buy" rating.
Risk warning: the market boom is lower than expected, and there are major changes in industry rules
