\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Key investment points
Performance overview
In 2021 Citic Securities Company Limited(600030) achieved an operating revenue of 76.52 billion yuan, with a year-on-year increase of 40.7%; The net profit attributable to the parent company was 23.1 billion yuan, a year-on-year increase of 55.0%; The weighted average return on net assets was 12.07%, with a year-on-year increase of 3.64pct. Q4 achieved a total operating revenue of 18.71 billion yuan, a year-on-year increase of 51.4%; The net profit attributable to the parent company was 5.45 billion yuan, a year-on-year increase of 143.3%, and the performance was basically consistent with the disclosure of the express.
Deepening the transformation of wealth management business
In terms of brokerage business: in 2021, the net income of Citic Securities Company Limited(600030) brokerage business was 13.96 billion, a year-on-year increase of 24%, higher than the growth rate of 25% of the daily average stock based turnover of the whole market, mainly due to the increase of the market share of the company’s stock based turnover from 0.46pct to 6.95% year-on-year.
In terms of wealth management: at the end of 2021, the number of high net worth customers with assets of more than 6 Shenzhen Zhenye(Group)Co.Ltd(000006) million reached 35000 (a year-on-year increase of 29%), and the asset scale reached 1.5 trillion yuan (a year-on-year increase of 19%). Two months after the fund investment advisory business was launched, the number of contracted customers exceeded 90000, the asset scale of contracted customers exceeded 7 billion yuan, and the average household asset scale was about 80000 yuan. The income from selling financial products on a commission basis was 2.65 billion yuan, accounting for 1.6pct to 19.0% of the net income of brokerage business, and wealth management continued to deepen. Looking forward to the future, the company will continue to give full play to its advantages in brand, product system and professional team, and further improve the proportion of wealth management revenue.
In terms of asset management business: in 2021, the net income of Citic Securities Company Limited(600030) asset management business was 11.7 billion, a year-on-year increase of 46%, and the scale of asset management stabilized and rebounded to 1.6 trillion (a year-on-year increase of 19%). The company’s active management capability continued to improve, and the proportion of CITIC’s active management scale increased by 25 PCT to 90% at the end of 21q4. The net profit of Huaxia Fund increased steadily to 14.66 trillion year-on-year. Looking forward to the future, the company will continue to focus on multi asset models such as active management, long-term net limit type, “fixed income +” and equity, continue to improve the scale of asset management and customer service ability, and improve the income of asset management business.
Investment banking business ranks first in the market
The net income of investment banking business increased by 3.6 billion yuan year-on-year. The company’s A-share underwriting scale is 331.9 billion, accounting for 18.26% of the market, ranking first in the securities industry; The scale of debt underwriting was 1564.1 billion yuan, accounting for 5.84% of the market, ranking third in the whole market. Looking forward to the future, the comprehensive stock issuance registration system is expected to be implemented in 2022. The Citic Securities Company Limited(600030) project, as the leading investment bank, has sufficient reserves and will continue to benefit from the dividends of system reform.
The scale of financial assets continued to expand
In 2021, the Citic Securities Company Limited(600030) investment income was 22.69 billion yuan, with a year-on-year increase of 27%, mainly due to the change of fair value from loss to profit to 5.3 billion yuan (2020: – 6.4 billion yuan). At the end of 2021, financial assets expanded by 28% over the beginning of the year to 645.6 billion, of which transactional financial assets increased by 30%, derivative financial assets increased by 54%, and the expansion of financial assets driven the growth of investment income.
Profit forecast and valuation
Citic Securities Company Limited(600030) the whole business line is growing rapidly, and the leading position continues to be consolidated. The transformation of wealth management continues to deepen and is expected to further increase the proportion of income. It is estimated that the growth rate of net profit attributable to the parent company from 2022 to 2024 will be 14% / 24% / 13%, and the corresponding BPS will be 15.72/17.50/19.50 yuan per share. Maintain the target price to 32.50 yuan, corresponding to pb1.5 yuan in 2022 3x, maintain the “buy” rating.
Risk tips
The macro-economy has declined significantly; The activity of market trading fell sharply; The progress of market reform was less than expected.
