\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Event description
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 shareholders of the company was RMB 23.1 billion, with a year-on-year increase of 55.01%, and the return on net assets was 12.07%, with a year-on-year increase of 3.64 percentage points.
Event comments
Both light and heavy, balanced business development. The company’s asset light businesses such as brokerage, investment banking and asset management achieved revenue of 13.963 billion yuan, 8.156 billion yuan and 11.702 billion yuan, with contributions to revenue of 18.25%, 10.66% and 15.29% respectively, totaling 44.20%. Net interest income and investment income were 5.337 billion yuan and 23.572 billion yuan respectively, and their contribution to revenue was 6.97% and 30.80% respectively, with a total of 37.78%.
The transformation of wealth management has been fruitful. The company has built a wealth management system of the whole industry chain to meet the diversified and personalized service needs of customers. Relying on institutional customers, the company has formed a wealth management service ecosystem for ultra-high net worth customers. The market share of stock based trading volume increased to 7.16% (6.66% in 2020). There are 3000 entrepreneurs’ office customers with assets of more than 50 million yuan, 35000 high net worth customers with assets of more than 6 million yuan (year-on-year + 29%), assets of 1.5 trillion yuan (19%), 158000 customers with assets of more than 2 million yuan (year-on-year + 25%) and assets of 1.8 trillion yuan (year-on-year + 21%). Fund investment advisers have signed up more than 90000 customers, with customer assets of more than 7 billion yuan. The revenue of sub warehouse increased by 58% year-on-year, and the product sales revenue increased by 35% year-on-year.
The advantages of investment banking business continued to be consolidated, and the proportion of asset management business income increased significantly. Pay close attention to the dividend of registration system and rank first in the industry in stocks, bonds and M & A transactions. The IPO underwriting amount of the science and Innovation Board increased by 31% year-on-year, and the IPO underwriting amount of the gem increased by 158% year-on-year. The market share of IPO underwriting scale increased significantly from 9.3% to 15.83%. The market share of refinancing underwriting scale increased from 17.53% to 19.29%. The parent company’s asset management focus institutions and high net worth customers, with a scale of 1.63 trillion yuan, a year-on-year increase of + 19%. The asset management scale of Huaxia Fund was 1.66 trillion yuan, a year-on-year increase of + 14%, including 1.04 trillion yuan of public funds.
Management upgrading, goodwill provision of 2 billion yuan and consolidation of asset quality. In 2021, the company implemented integrated management at home and abroad, reorganized CITIC Lyon, and realized the vertical integrated management of its business lines. The cash flow of each business line can be basically independent of other business lines. In 2021, CITIC CLSA recorded its best performance since its acquisition in 2013. For the acquisition of CITIC Lyon, the provision for impairment of goodwill was 1.093 billion yuan, and for the acquisition of CITIC South China, the provision for impairment was 876 million yuan.
Complete the allotment of a + H shares and expand the balance sheet. The capital raised from the allotment is about 27.33 billion yuan, of which 19 billion yuan is proposed to be invested in the capital intermediary business, which is conducive to the expansion of the company’s heavy asset business scale, meeting the requirements of various risk control indicators and optimizing the business structure.
Investment advice
The current valuation of the company is only 1.3 times, which is at a historical low valuation and has high cost performance. We are optimistic about the company’s use of leading advantages to build a customer service system and market-oriented management efficiency of the whole industrial chain. At the same time, the company’s share allotment is for the next development, the asset quality is stable and good, the provision slow-release provides space for the release of future performance, the employee stock ownership shows confidence, and we are optimistic about the future performance growth of the company. It is estimated that the company’s revenue from 2022 to 2024 will be 87.232 billion yuan, 103180 billion yuan and 123269 billion yuan respectively, the net profit attributable to the parent company will be 30.822 billion yuan, 38.247 billion yuan and 46.601 billion yuan respectively, the EPS will be 2.08 yuan, 2.58 yuan and 3.14 yuan respectively, and the net assets per share will be 16.98 yuan, 18.67 yuan and 19.84 yuan, corresponding to 1.21 times, 1.10 times and 1.03 times of Pb respectively. Give a “buy” rating.
There are risks
A sharp decline in macro-economy; Major risk events occur in the company; Local outbreaks are repeated.
