\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 958 Orient Securities Company Limited(600958) )
The big wealth management line has a high profit contribution, which continues to drive the company’s growth and valuation premium
In 2021, the company’s operating revenue / net profit attributable to the parent company was 24.37 billion / 5.37 billion, with a year-on-year increase of + 5% / + 97%, and an annualized roe of 8.5% 6%, year-on-year + 3.9pct, and the performance is in line with our expectations. The high growth of public fund-raising management and wealth management drove the growth of profits. The income of asset management and brokerage business was + 47% / + 38% respectively, and the provision for impairment decreased significantly year-on-year. The total profit contribution of the company’s large wealth management line (Dongzheng asset management + huitianfu + consignment) is expected to be 2.9 billion, a year-on-year increase of + 50%, exceeding our expectation, with a profit contribution of 54%. Considering the obvious decline in the net value of partial stock funds and the stock market since the beginning of the year, we lowered the net profit in 2022 / 23 to 6.1/7.3 billion (6.8/8.1 billion before the adjustment), and increased the forecast of net profit in 2024 to 8.9 billion. The company plans to raise no more than 16.8 billion shares, which has been approved at present. The company’s large wealth management line has outstanding competitive advantages, and the high profit contribution brings profit growth and valuation premium. The share price corresponds to pb1.5 in 2022 Double, maintain the “buy” rating.
The performance of asset management of Dongzheng increased significantly, and the total profit contribution of asset management of Dongzheng + huitianfu was 48%
(1) in 2021, the revenue / net profit of asset management of Eastern Securities Corporation was RMB 3.75 billion / 1.44 billion respectively. The growth rate of net profit of asset management of Eastern Securities Corporation exceeded our expectations, with a year-on-year increase of + 31% / + 78%, roe46% and a profit contribution of 26.8%. At the end of 2021, the total management scale was RMB 365.9 billion, a year-on-year increase of + 23%, the non goods management scale was RMB 256.7 billion, a year-on-year increase of + 37%, and the market share of non goods was 1.66%, which was the same as that at the beginning of the year. The scale of equity funds above the three-year closed period was RMB 108 billion, accounting for, Entrusted business income ranks first in the industry. (2) In 2021, huitianfu’s revenue / net profit was 9.38 billion yuan / 3.26 billion yuan respectively, with a year-on-year increase of + 41% / + 27%, roe41% and a profit contribution of 21.5%. At the beginning of the year, the success rate of the company’s “a50.1 trillion” products was slightly lower than that of the “m61.2 trillion” products in China at the beginning of the year, accounting for 11.1% of the total au1.2% of the total au1.2% of the total au1.2% of the company’s “A50 billion” products at the end of the reporting period, which was slightly lower than that of China’s “A50 billion”.
The effect of wealth management transformation is obvious, and the scale of stock pledge continues to drop
(1) in 2021, the company’s income related to wealth management products was 960 million, a year-on-year increase of + 36%, of which the income from consignment sales was 570 million, a year-on-year increase of + 45%. In 2021, the sales scale of equity products of the company was 30.3 billion, with a year-on-year increase of + 9%, of which the closed structure of actively managed equity products accounted for 62%. At the end of the year, the ownership scale of equity products of the company reached 64.7 billion, up from + 43% at the beginning of the year. At the end of 2021, the scale of shares + mixed public funds was 42.4 billion, ranking seventh among securities companies. At the end of the year, the number of retail high net worth customers reached 7815, up + 24% from the beginning of the year, and the customer asset scale was 188.8 billion, up + 20% from the beginning of the year. (2) In 2021, the company’s investment banking revenue was + 8%, 9 IPOs were underwritten, and the underwriting scale was + 27%, ranking the tenth in the industry. (3) At the end of 2021, the balance of stock pledge was 11.8 billion, which was – 23% higher than that at the beginning of the year, and the provision was sufficient; The company’s return on investment in financial assets was 3.3 billion, with a year-on-year rate of – 36%, and the return on self operated investment was 3.84%, with a year-on-year rate of -2.39 PCT. It is expected that stock investment will drag down self operated income; At the end of 2021, the nominal principal scale of OTC derivatives reached 29.5 billion yuan, an increase of more than 20 times over the beginning of the year.
Risk warning: the sharp fluctuation of stock market causes the uncertainty of brokerage profit; The scale expansion of public offering was less than expected.
