\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 958 Orient Securities Company Limited(600958) )
Key points
Event: Orient Securities Company Limited(600958) released the annual report for 21 years, and achieved an operating revenue of 24.37 billion yuan in 21 years, with a year-on-year increase of 5.3%. The net profit attributable to the parent company was 5.372 billion yuan, a year-on-year increase of 97.3%. The basic earnings per share is 0.73 yuan / share.
Asset management business continues to lead the industry, benefiting from the rapid expansion of fund management scale. In the past 21 years, the net income of the company’s asset management business was 3.62 billion yuan, a year-on-year increase of 46.9%, and the revenue growth rate reached a new high in recent four years. At the end of the year, the total scale of asset management was 366 billion yuan, an increase of 23% over the end of the previous year. The management scale of public funds was 269.6 billion yuan, an increase of 35% over the beginning of the year, of which the long-term closed-end funds with the main products of more than three years accounted for 69%. With the public offering trend of asset management of securities companies and the continuous expansion of the company’s “Dongfanghong” brand influence, we believe that the public fund business in the company’s asset management business will become a sustained and stable performance growth point.
Brokerage and securities finance business increased year-on-year, and the strength of consignment business was significant. In 21 years, the company’s net income from brokerage business was 3.62 billion yuan, a year-on-year increase of 38%. Benefiting from the growth of financing business and deposit business, the net interest income increased by 88% year-on-year to 1.46 billion yuan. In terms of consignment sales of financial products, the company’s product sales revenue in 21 years was 960 million yuan, a year-on-year increase of 36.2%. The ownership scale of equity products was 64.7 billion yuan, an increase of 43% over the end of the previous year. At the end of the 21st century, the holding scale of the company’s stock + mixed public fund ranked seventh among securities companies, with outstanding consignment strength. In addition, the company officially launched the investment advisory business of public funds in November 21. We believe that the company’s long-term culture and the concept of value investment in the field of fund investment contribute to the further development of the company’s investment advisory business, and the development space is worth looking forward to.
The investment banking business grew rapidly, and the IPO underwriting scale increased significantly. In the past 21 years, the company’s net income from investment banking was 1.7 billion yuan, an increase of 7.8% year-on-year. The company seized the opportunity of registration system and rapidly improved its industry status. In 21 years, the investment bank completed the main underwriting of equity of RMB 39.05 billion, with a year-on-year increase of 128.6%, higher than the growth rate of the industry.
The business of fund subsidiaries is booming. The net investment income of the company in 21 years mainly benefited from the increase of investment income of huitianfu fund. Huitianfu (holding 35.4% of the equity of huitianfu Fund) is at the forefront of the industry. By the end of 21, the total scale of huitianfu’s asset management had exceeded RMB 1.2 trillion, ranking at the forefront of the industry, with a net profit of RMB 3.263 billion.
Investment suggestion: benefiting from the development of equity market and the excellent performance of asset management business, the net income of the company’s wealth management line (consignment + asset management + fund sub) accounted for a relatively high proportion of performance contribution in 21 years. In addition, the balanced development of various businesses is conducive to the long-term operation of the company. Looking ahead, driven by the development of the equity market, the company’s asset management business and fund subsidiaries are expected to continue to contribute excess returns. In view of the decline in the growth rate of 22q1 equity fund sales, we lowered the 22-year and 23-year net profit forecasts to 6.657 billion yuan (down 4.7%) and 7.842 billion yuan (down 8.7%), and increased the 24-year net profit forecast to 9.167 billion yuan to maintain the “overweight” rating.
Risk warning: the secondary market fluctuates greatly; The market turnover decreased.
