\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Core view
Citic Securities Company Limited(600030) disclosed the annual report of 2021, and the performance of 2021 exceeded expectations. In 2021, the company achieved an annual operating revenue of 76.524 billion yuan, a year-on-year increase of 40.71%; The net profit attributable to the parent company was 23.1 billion yuan, a year-on-year increase of 55.01%. In 2021, the weighted average return on net assets was 12.07%, an increase of 3.64 percentage points year-on-year. The basic earnings per share was 1.77 yuan, a year-on-year increase of 53%.
Investment banking business is firmly in the leading position in the industry. In 2021, the company achieved investment banking revenue of 8.156 billion yuan, a year-on-year increase of 18.51%. During the reporting period, the company completed the main underwriting amount of A-Shares of 331917 billion yuan, with a year-on-year increase of 5.84% and a market share of 18.26%, ranking first in the market. With the reform of the registration system, the company continued to increase the coverage of IPO customers such as the science and innovation board and the gem, completed 68 IPO projects, issued a total of 85.922 billion yuan, and ranked first in the market with a market share of 15.83%. The company completed the main underwriting of refinancing with an amount of 245995 billion yuan, with a market share of 19.29%, also ranking first in the market.
The comprehensive competitiveness of brokerage business was improved, and the transformation of wealth management was deepened. In 2021, the company achieved a brokerage revenue of 13.963 billion yuan, a year-on-year increase of 24.03%. By the end of the reporting period, the company had more than 12 million customers, and the asset scale of entrusted customers totaled 11 trillion yuan, an increase of 29% over the end of 2020. The number of high net worth customers with assets of more than 6 million yuan reached 35000, and the asset scale reached 1.5 trillion yuan, an increase of 29% and 19% respectively over the end of 2020.
Revenue from asset management business increased by 46.17% year-on-year. In 2021, the company realized an asset management business revenue of 11.702 billion yuan, a year-on-year increase of 46.17%. By the end of the reporting period, the total asset management scale of the company had reached 1625735 billion yuan. The market share of the company’s private asset management business (excluding pension business, public offering large collection products and asset securitization products) under the new asset management regulations was about 15.87%, ranking first in the industry.
Investment business income increased by 26.67% year-on-year, and credit business income increased by 106.32% year-on-year. In 2021, the company achieved investment business income of 22.683 billion yuan, a year-on-year increase of 26.67%. The revenue from credit business was 5.327 billion yuan, a year-on-year increase of 106.32%. The company’s stock proprietary business has increased its investment in emerging science and technology industries. At the same time, it has paid attention to the integration of the company’s resource advantages. Taking the industrial chain research as the starting point, it has maintained a steady performance as a whole.
Risk warning: market decline brings uncertainty to bond business performance and valuation repair; Stricter financial supervision; Intensified market competition; Tight liquidity leads to rising financing costs; The promotion of innovation is less than expected.
Investment suggestion: we predict that the net profit of the company from 2022 to 2024 will be 27.9 billion yuan, 32.2 billion yuan and 36.5 billion yuan respectively, with a year-on-year increase of 20.6% / 15.7% / 13.2%. The PE corresponding to the current stock price is 9.5/8.2/7.3x and Pb is 1.2/1.1/1.0x. With the continuous reform of the capital market, the industry will accelerate the formation of a differentiated development pattern. Leading securities companies have advantages in strategic layout, capital strength, customer resources and risk pricing ability. The comprehensive strength of the company continues to lead the industry, and all businesses grow steadily. We maintain its “buy” rating.
