\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 377 China Industrial Securities Co.Ltd(601377) )
Event overview
The company released its annual report for 2021, with an operating revenue of 18.97 billion yuan, a year-on-year increase of + 8%, and a net profit attributable to the parent company of 4.74 billion yuan, a year-on-year increase of + 18%; The weighted average roe was 12.04%, with a year-on-year increase of 0.97pct. The basic earnings per share was 0.71 yuan, a year-on-year increase of + 18%.
Analysis and judgment:
Fund management, brokerage and interest contributed the largest performance increment, while investment banking, proprietary trading and other income contributed a negative increase
In terms of income structure, fund management business accounts for the highest proportion, reaching 25%, followed by proprietary business and other businesses, accounting for 20%, brokerage business accounts for 19%, and net interest income, investment banking business and asset management business account for 9%, 7% and 1%.
From the perspective of incremental income contribution, fund management business contributed 113% of the incremental income, brokerage and interest net income contributed 56% and 40% respectively, asset management contributed 7%, and investment banking, proprietary and other business income contributed negative, contributing – 10%, – 73% and – 37% respectively.
The performance of asset management was excellent, and the fund management income was as high as 4.7 billion yuan, with an asset management income of + 73% year-on-year
The company’s public fund layout is leading in the industry, holding 51% equity of Xingzheng Global Fund and 9% equity of Nanfang fund respectively. Xingzheng Global Fund has maintained a leading position in the industry in terms of medium and long-term investment performance, and has won the “Taurus fund company award” for 11 times, ranking first in the industry. By the end of December 2021, its total asset management scale was 673 billion yuan, an increase of 27% over the end of the previous year, including 590.1 billion yuan of public funds, an increase of 30% over the end of the previous year.
The company’s asset management business gradually developed, and the annual revenue of the company’s asset management business was 242 million yuan, a year-on-year increase of + 73%.
Excellent wealth management performance and rapid growth of net interest income
In 2021, the brokerage and interest income of the company reached 3.561 billion yuan and 1.724 billion yuan respectively, with a year-on-year increase of 28% and 48% respectively. Among them, the share based trading market accounted for 1.65%, a slight decrease year-on-year; The income from selling financial products on a commission basis was 660 million yuan, a year-on-year increase of + 45%.
During the reporting period, the company’s fund investment consulting business was officially approved to expand, the family wealth service system achieved initial results, the trading business was carried out steadily, and the securities brokerage business ushered in a new growth point.
The rate of return on proprietary investment decreased, and the income of investment banking decreased slightly
The company’s securities proprietary business dragged down the overall growth, with an income of 3.73 billion yuan, a year-on-year increase of – 21%, mainly due to the sharp decline in the rate of return on investment. Among them, the investment assets were 82.2 billion yuan, a year-on-year increase of + 12%, and the annualized return on investment was 4.79%, a year-on-year decrease of 1.63 PCT.
The income of investment banking business was 1.242 billion yuan, a year-on-year increase of – 10%, of which the scale of core bonds was 130.73 billion yuan, with a market share of 1.78%, an increase of 0.51 PCT year-on-year; The IPO and refinancing amounts were 10.07 billion yuan and 5.89 billion yuan respectively, with market shares of 1.67% and 0.83% respectively, down 0.22pct and 0.58pct respectively.
Investment advice
The company’s outstanding fund management business will significantly benefit from the era of wealth management. Among them, the scale of public fund management continues to grow, the transformation of asset management public offering is steadily promoted, and product innovation is carried out in an orderly manner; At the same time, the performance of institutional brokerage and consignment business is excellent, and the coordination with investment management business is good. Optimistic about the follow-up development of the company’s wealth management industrial chain.
Based on the changes in the market environment, we lowered the forecast of the company’s operating revenue of 22.945/27.109 billion yuan in 22-23 years to 22.16/24.82 billion yuan, increased the 24-year forecast to 27.36 billion yuan, and lowered the eps0.00 yuan in 22-23 years The forecast of 95 / 1.13 yuan is 0.84/0.97 yuan, and the 24-year forecast value is increased by 1.09 yuan, corresponding to the closing price of 7.73 yuan / share on March 30, 2022. Pb is 1.24/1.22/1.20 times respectively, maintaining the “buy” rating of the company.
Risk tips
The stock and bond market fluctuated sharply, and the return on proprietary investment fell; Stock market fluctuation and stock pledge business risk; Industry talent competition has led to a significant increase in management fees.
