\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Citic Securities Company Limited(600030) disclosed the 2021 annual report. During the reporting period, the company achieved an operating revenue of 76.524 billion yuan, an increase of 40.71% year-on-year; The net profit attributable to the parent company was 23.1 billion yuan, a year-on-year increase of 55.01%. EPS1. 77 yuan / share, with a year-on-year increase of 52.59%; ROE12. 07%, up 3.64 percentage points year-on-year.
The company’s performance growth rate is significantly ahead of the industry, its comprehensive advantages continue to expand, and its leading position is more prominent. The operating performance of the securities industry is highly correlated with the market, and the continuous improvement of the core market indicators provides a stable performance growth space for the company. From the industry situation in 2021, the industry revenue increased by 12% and the net profit increased by 21%, while the company’s revenue and net profit increased by 41% and 55% respectively, both significantly ahead of the industry. The company’s revenue and net profit have reached 15% in the industry, ranking the first among the “flowers bloom”, and the leading position in the industry is difficult to be shaken in the short term. Relying on the continuous promotion of the company’s extensive M & A, the company’s total assets reached 1.28 trillion by the end of 2021, with net assets attributable to the parent of 209.2 billion, ranking first in the industry. With the placement of the company’s shares and the use of raised funds, the advantages of the company’s total assets and net assets are expected to be further expanded. In addition, benefiting from the continuous promotion of the comprehensive registration system, the deepening of wealth management transformation and asset management business reform, the in-depth expansion of overseas markets, the full flowering of the company’s whole business chain, and the rapid growth of operating revenue and net profit.
Through the registration system “Dongfeng”, the company’s large investment banking business has made great strides forward. After the implementation of capital market reforms such as the science and innovation board, the gem registration system and the Beijing stock exchange, the advantages of the company’s investment banking business have further emerged. In 2021, the company completed equity financing of 331.9 billion, ranking first in the industry, with a market share of 18.3%, including IPO underwriting and recommendation scale of 85.9 billion (market share of 15.8%), bond underwriting scale of 1.56 trillion and M & a scale of 95.9 billion (market share of 25%), both ranking first in the industry, expanding its leading advantages and gradually breaking through the competition pattern of “three middle schools”. One belt, one road, is the main beneficiary of the direct investment business. The direct investment business has benefited from the shortened cycle of the whole process of “investment and withdrawal”. The Citic Securities Company Limited(600030) investment and the CITIC fund have gained more opportunities for development. And through the Citic Securities Company Limited(600030) international and other overseas platforms, China has been relying on the active layout along the line for a long time to drive more Chinese enterprises to sea and continue to enrich the source of company revenue.
The blowout development of fund investment accelerates the transformation of the company’s wealth management. The company has a wealth management system based on wealth management business line and Huaxia Fund, and an asset management system based on Citic Securities Company Limited(600030) asset management, CITIC futures asset management and Jinshi investment. Through efficient coordination, the company helps the comprehensive development of large wealth management business, and the asset scale of individual customers and institutional customers continues to grow. The proportion of big wealth management income has reached 40%, which is close to the level of overseas investment banks. By the end of 2021, the company’s large wealth management system has served more than 5 trillion wealth, which can be comparable to some joint-stock banks. At the same time, through the industry-leading equity derivatives and QDII and ficc business lines, the company provides a richer source of financial products for the wealth management line, and can also hedge market risks to a greater extent, reduce the fluctuation of net worth and improve the level of return, so as to improve the recognition of wealth management customers to the company’s management ability and brand. In addition, the high-quality product line also effectively helps the company to improve the efficiency of the use of its own funds, and also has the ability to improve the operating leverage ratio, so as to promote the profitability of the company.
Investment suggestion: at present, the business homogenization of the securities industry is still strong. Under the background of the continuous enhancement of Matthew effect, only the leading moat is expected to continue to exist and broaden, the resource agglomeration effect is more significant, and then have the opportunity to obtain a higher valuation premium. As the absolute leader of the industry, Citic Securities Company Limited(600030) not only has no obvious weakness in business and outstanding comprehensive strength in the industry, but also has certain characteristics and heterogeneity in business structure, and the anti cycle attribute has initially appeared. From the perspective of profitability, the roe of the company has reached 12%. On the basis of maintaining a low level of leverage, the roe has approached the overseas head investment bank, and the certainty of profitability and performance growth is worthy of affirmation. After the completion of the company’s 28 billion share allotment, it is expected that 19 billion will be invested in the capital intermediary business, which is expected to further improve the profitability and comprehensive competitiveness. We are firmly optimistic about the company’s long-term development prospects and the future of building a “securities industry aircraft carrier”. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 27.374 billion yuan, 33.752 billion yuan and 38.072 billion yuan respectively, maintaining the “recommended” rating. Affected by the share allotment and the market downturn at the beginning of the year, the company’s valuation is only 1.37xpb, which has strong medium and long-term investment value. It is recommended to firmly buy and hold. The target price for the year is 30.5 yuan, corresponding to 2xpb.
Risk tips: macroeconomic downside risk, policy risk, market risk and liquidity risk.
