\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Event: Citic Securities Company Limited(600030) released the annual report of 2021, the company achieved operating revenue of 76.52 billion yuan and net profit attributable to parent company of 23.1 billion yuan in 21 years; Weighted average roe12 07%, a year-on-year increase of 3.64 percentage points.
The performance growth rate reached a new high in recent five years, and the operating efficiency was improved. The growth rate of the company’s revenue / net profit in the past 21 years was 40.7% / 55% respectively, reaching a new high in recent five years. The proportion of brokerage / investment / investment bank / asset management / other income is 24% / 24% / 10% / 18% / 24% respectively, accounting for a relatively balanced proportion. From the perspective of income growth, the growth of brokerage business and two financial services driven by active market transactions contributed to the main incremental income. In addition, the credit impairment loss was significantly reduced to 900 million yuan year-on-year, and the impairment pressure was mitigated. The operating efficiency of the company continued to improve, and the roe increased to 12.07% in 21 years; The gross profit margin in the year of 21 was 42.4%, an increase of 4.4 percentage points over the previous year.
The number of customers increased rapidly, and the net interest income increased rapidly. The company’s net income from brokerage business and interest in 21 years was 13.96 billion yuan and 5.34 billion yuan respectively, with a year-on-year increase of 24% and 106%. The number of brokerage clients increased by leaps and bounds. At the end of the year 21, the number of clients exceeded 12 million, and the asset scale of custody clients totaled 11 trillion yuan, an increase of 29% over the end of the year 20. The rapid growth of the company’s entrusted asset scale benefits from the promotion of wealth management transformation.
Investment income has increased significantly year-on-year, and the agency derivatives business is expected to contribute more. In 21 years, the company’s investment business income increased by 27.5% year-on-year to 23.58 billion yuan. On the one hand, it benefited from the rise of A-share index in 21 years, and the overall market income was good. On the other hand, it is expected to benefit from the rapid development of the company’s agency derivatives business.
The stock and debt business continues to rank first in the industry. Corporate stock and bond business remained the first in the market: in 21 years, the principal underwriting amount of A-Shares was 331.9 billion yuan, an increase of 5.8% year-on-year, and the market share was 18%, an increase of 1 percentage point over the previous year; The amount of bonds underwritten by the company accounts for 13.74% of the total amount of securities companies. 21 years ago, the market share of the stock business of the top ten securities companies was 72%. In 22 years, under the background of the comprehensive promotion of the registration system, the trend of investment banking business focusing on the head has become more and more obvious, and the company’s advantages as an industry leader are expected to be further highlighted.
The scale of asset management has increased rapidly, and asset management has shifted to active transformation. 21 is the last year of the transition period of the new regulations on asset management. The industry supervision has been normalized. The company’s asset management scale is 1.63 trillion yuan, with a year-on-year increase of 18.6%. The growth rate of the scale is faster than that of the asset management scale of the securities industry, reflecting the leading advantage of the company’s asset management business under the background of industry reshuffle. In addition, the proportion of collective asset management plan reached 40.6%, an increase of 22 percentage points over the previous year, and the company’s transformation to active business achieved remarkable results. The subsidiary Huaxia Fund realized a net profit of 2.312 billion yuan in 21 years, an increase of 44.8% over the previous year.
Investment suggestion: as the industry leader, the growth rate of many businesses of the company has increased. Its excellent exhibition ability and strong brand advantages are expected to further improve the market share of the company, and roe will move towards a steady upward channel. Based on the lower than expected sentiment in the A-share market at the beginning of 22 years, we adjusted the company’s net profit from 22 to 23 years to 27.555 billion yuan (down 0.2%) and 32.688 billion yuan (down 2.7%), and added a 24-year net profit of 38.071 billion yuan, maintaining the “overweight” rating of A-Shares and the “buy” rating of H shares.
Risk warning: the promotion of capital market policies is not as expected; Sharp market shocks affect the performance of stock prices.
