\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 999 China Merchants Securities Co.Ltd(600999) )
Key investment points
Event: the company released its annual report for 2021, with a revenue of 29.429 billion yuan, a year-on-year increase of 21.2%, and a net profit attributable to the parent company of 11.645 billion yuan, a year-on-year increase of 22.7%, with a weighted average roe11.5% 52%, year-on-year + 0.67pct. Proportion of income: brokerage 26.9%, investment banking 8.6%, asset management 3.5%, interest 5.8%, investment 32.1%, others 23.1%; Year on year growth rate of revenue: brokerage + 17.8%, investment banking + 18.5%, asset management – 9.2%, interest – 34.9%, investment + 39.4%, others + 38.8%.
Performance attribution: the net income from securities trading of [brokerage and wealth management] agent was 7.916 billion yuan, a year-on-year increase of + 17.8%, accounting for 4.80% of the market, a year-on-year increase of -0.05pct; The trading volume of the company’s A-share base was 26.27 trillion yuan, a year-on-year increase of + 43.87%, accounting for 4.90% of the market, a year-on-year increase of + 0.65pct; The net income from selling financial products on a commission basis was 1.006 billion yuan, with a year-on-year increase of + 60.5%, ranking fifth in the industry and rising by 2 year-on-year. [two financing] at the end of the year, the balance of two financing was 96.468 billion yuan, a year-on-year increase of + 16.0%, accounting for 5.27% of the city, a year-on-year increase of + 0.13 PCT. [investment banking] IPO underwriting was 21.957 billion yuan, ranking the seventh in the industry, accounting for 3.64% of the city. There were 23 underwriters, ranking the eighth in the industry; Refinancing underwriting was 21.007 billion yuan, with 20 companies, ranking ninth in the industry, and the underwriting market accounted for 2.11%; The total underwriting amount of corporate bonds + corporate bonds was 49.582 billion yuan, ranking the 23rd in the industry, accounting for 1.27%. [asset management] as of March 24, China Merchants Securities Co.Ltd(600999) asset management has 183298 billion shares and 174199 billion yuan net asset value, ranking second in the industry; The non monetary fund management scale of China Merchants Fund and Boshi fund is 572938 billion yuan and 529622 billion yuan, ranking seventh and eighth in the industry. [investment] at the end of the year, the scale of financial assets was 311658 billion yuan, with a year-on-year increase of + 36.0%. The directional self operation of stocks significantly outperformed the CSI 300. The stock and increase of OTC derivatives were + 117% and + 89% year-on-year respectively. The return on investment of domestic fixed income business outperformed the market benchmark.
The scale of light capital business is large, and the strength of heavy capital business is strong: the company’s brokerage, wealth management, investment banking, asset management and other business scale ranks in the forefront of the industry, and is still deepening the layout in combination with the industry trend, seeking to maintain the leading position in the industry. Strong capital strength to support the development of two finance, investment and other businesses. Outstanding investment ability, forming differentiated competitive advantage.
Investment suggestion: the net profit attributable to the parent company in 2021 is in line with the expectation. We predict that the profit from 2022 to 2024 will be 13.647 billion yuan, 15.896 billion yuan and 18.080 billion yuan. As a leading securities firm, the company has strong comprehensive strength, 2022ep / B1 17x, in the undervalued range in recent five years, maintaining the “Buy-A” rating.
Risk tips: capital market scenarios have decreased or increased volatility, policy risks, etc.
