\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 995 China International Capital Corporation Limited(601995) )
Matters: China International Capital Corporation Limited(601995) released the annual report of 2021. The annual operating revenue was 30.131 billion yuan, a year-on-year increase of 27.35%, and the net profit attributable to the parent company was 10.778 billion yuan, a year-on-year increase of 49.54%; The total assets increased by 24.57% to RMB 649795 billion compared with the end of the previous year, and the net assets attributable to the parent increased by 17.85% to RMB 84.422 billion compared with the end of the previous year 73 yuan / share. The company plans to distribute a total cash dividend of 1.448 billion yuan to shareholders, with 3.0 yuan (including tax) for every 10 shares.
Ping An View:
The profitability continues to improve, and the fund utilization ability is leading in the industry. The company’s profitability continued to lead the industry. Roe further increased by 1.8pct to 13.81%, and the leverage ratio increased to 6.59 times. At the same time, the company reversed the impairment of 408 million yuan (973 million yuan was withdrawn in the same period last year), driving the rapid growth of performance. In 2021, the company’s self operated, brokerage, investment banking, asset management and interest income accounted for 49%, 20%, 23%, 5% and – 3% respectively. Among them, the proportion of self operated income decreased, but it is still the main source of income, and the proportion of investment banking income is significantly higher than the industry average.
Investment banks have obvious leading advantages, and the scale of equity underwriting has increased. The underwriting amount of the company’s A-share IPO in 2021 was 100538 billion yuan (YoY + 61.07%), with a market share of 16.67%, ranking second in the market and still maintaining the first echelon in the industry; The refinancing underwriting amount of A-Shares is 81.314 billion yuan (YoY + 101.12%), with a market share of 11.42%, ranking second in the market; China’s bond underwriting amount is 729684 billion yuan (YoY + 11.55%), ranking fifth in the securities industry. The company’s overseas market network is relatively perfect, and its overseas financing business is in a leading position. In the whole year, the main underwriting port and US stock IPO scale were US $4.00 billion and US $1.256 billion, ranking first and fourth in the market. The total net income of investment banks in the whole year was 7.036 billion yuan (YoY + 18.14%), and the growth rate was significantly higher than the overall level of the market.
The wealth management business continued to develop, and the scale of asset management was further expanded. 1) The scale of wealth management business expanded rapidly. By the end of 2021, the total value of customer account assets was 3 trillion yuan (YoY + 16.2%), of which the total value of high net worth individual customer account assets reached 820435 billion yuan (YoY + 22.0%), and the number of products exceeded 300 billion. The buyer’s investment advisory business is leading in development, with nearly 80 billion yuan (YoY + 180%) of buyer’s charged assets in wealth management, including “China 50”, “micro 50”, fund investment advisers, etc.
The company achieved a net brokerage income of 6.031 billion yuan (YoY + 30.81%). 2) The scale of the company’s asset management business expanded rapidly. By the end of 2021, the scale of asset management business was 1.13 trillion yuan (YoY + 119.98%). The management scale of CICC fund was 85.191 billion yuan (YoY + 54.05%), and the net income of asset management business was 1.533 billion yuan (YoY + 34.93%).
The performance of proprietary business is outstanding, and the derivatives business is developing at a high speed. The company’s self-supporting business is mainly agency business, benefiting from the outstanding product design ability and balance sheet operation ability. In 2021, the self-supporting business income was 147.03 yuan (YoY + 11.74%). Outstanding advantages in institutional business and rapid expansion of derivatives business. By the end of 2021, the scale of derivative financial assets had reached 14.564 billion yuan (YoY + 18.30%).
Investment suggestion: this round of capital market reform puts forward more professional requirements for investment banks. The company’s institutional business advantages and high net worth customer resources create differentiated competitiveness and continue to enjoy valuation premium. Considering that the company’s performance in 2021 exceeded expectations and the company, as a leading investment bank, has stronger performance anti cyclical ability, we slightly raised the forecast of the company’s net profit attributable to the parent company in 22 / 23 / 24 to 11.3/13/14.4 billion yuan (the original forecast was 10.8/12.9 billion yuan attributable to the parent company in 22 / 23, and the new forecast for 2024), with a year-on-year increase of 5% / 15% / 11%, maintaining the “recommended” rating.
Risk tips: 1) the progress of capital market reform is less than expected; 2) Monetary policy tightened more than expected; 3) The epidemic has repeatedly affected market risk appetite.
