There is always something new in the annual report season. Recently, with the disclosure of the annual reports of listed companies, the business trends of many fund companies in 2021 have also surfaced.
Huaxia Fund Revenue and profit “double increase”
On March 28, the annual report disclosed by Citic Securities Company Limited(600030) revealed that Huaxia Fund, a subsidiary holding 62.2% equity, realized an operating revenue of 8.015 billion yuan and a net profit of 2.312 billion yuan in 2021. It is worth noting that both operating income and net profit of Huaxia Fund reached a record high in 2021, an increase of 44.7% and 44.68% respectively compared with 2020.
Data source: Citic Securities Company Limited(600030) disclosure data
In addition, the annual report also disclosed that as of the end of last year, the asset management scale of Huaxia Fund headquarters was 1661607 billion yuan, of which the management scale of public funds successfully exceeded trillion yuan to 1038375 billion yuan; The asset management scale of institutions and international businesses is 623232 billion yuan.
For the performance of “double increase” in revenue and profit of Huaxia Fund in 2021, industry analysts said that this is closely related to the rapid development of the company’s ETF products Tianfeng Securities Co.Ltd(601162) statistics show that by the end of 2021, Huaxia Fund ranked first in the market with an ETF management scale of 245401 billion yuan, far exceeding the second. From 2019 to 2021, the ETF management scale of Huaxia Fund increased by more than 100%, further widening the gap with other companies in the industry.
annual reports of several fund companies have been issued
According to the statistics of Huicheng fund research center, as of March 28, 2022, in addition to Huaxia Fund, the shareholders of 11 public fund companies disclosed the annual report of 2021, including Boshi fund, China Merchants Fund, industrial fund and Guohai Franklin fund. From the disclosed data, despite the ups and downs of the market last year, most fund companies have maintained a good growth momentum First Capital Securities Co.Ltd(002797) securities annual report also revealed the revenue data of Yinhua Fund. In 2021, the company’s net profit was close to 1 billion yuan. By the end of 2021, the operating income of Yinhua Fund was 3.986 billion yuan and the net profit was 922 million yuan, an increase of 22.41% and 11.41% respectively compared with the same period in 2020.
Table 1 Main financial data of the fund company in 2021
Data source: annual report of listed companies, compiled by Huicheng Fund Research Center
In terms of the total profits of the disclosed fund companies, the net profits of BOCOM Schroeder fund, Boshi fund and China Merchants Fund in 2021 were higher, respectively 1.786 billion yuan, 1.779 billion yuan and 1.603 billion yuan, which were significantly higher than those in 2020.
In terms of profit growth, the net profits of China Merchants Fund, Guohai Franklin fund, Boshi fund and bocom Schroeder fund in 2021 increased by 77.31%, 69.28%, 42.64% and 41.75% respectively compared with 2020.
In addition, both Zheshang fund and CNOOC fund turned losses into profits in 2021, realizing net profits of 214086 million yuan and 5.1352 million yuan respectively.
star fund manager’s annual report indicates the future direction
Specifically, in terms of investment, we can also get a glimpse of the fund manager’s views on the current market and future investment ideas from the recently disclosed annual reports of funds managed by star fund managers.
For the current market, Lu Bin of HSBC Jinxin Fund believes that since March, due to concerns about the fermentation of some recent risk events, the market has undergone extremely drastic adjustment in the short term, and the rapid decline has exacerbated the panic of sentiment and the negative feedback of investment liquidity. Under the background of high implied return in long-term market valuation, such short-term drastic changes are often unsustainable. At the current time point, from the perspective of one to two years, the implied return of many stocks has been very attractive. In the medium term, structure is more important than position.
Qiu Dongrong of Zhonggeng Fund said that at the beginning of 2022, the market was under great pressure, and the equity assets quickly adjusted to release risks and obtain a higher implied return level. From the perspective of risk premium, the implied return level of equity assets is improving. At present, the risk premium of CSI 800 is close to the level of 0.5 times the standard deviation above the historical net value level. The overall risk premium level of the market is attractive.
In terms of investment opportunities, Lu Bin believes that under the background of the times, carbon neutralization is expected to become the main line of the long-term market. He will conduct in-depth research among leading companies in the new energy, cycle manufacturing industry and environmental protection technology companies, look for high-quality companies that are expected to fully benefit from the global carbon neutralization background, and seize market opportunities by looking for structural opportunities.
Qiu Dongrong adheres to the concept of undervalued value investment, and builds a cost-effective portfolio by selecting stocks with low fundamental risk, positive profit growth and cheap valuation, so as to strive to obtain sustainable excess returns. Specifically, the investment direction focused on comes from four aspects: finance and real estate in the large market value stocks; Energy and resource companies; Medium and small cap value and growth stocks, as well as large cap value stocks in Hong Kong stocks, some companies with good growth and some Internet stocks.
