\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 995 China International Capital Corporation Limited(601995) )
Key investment points
Event: the company released an annual report. In 2021, the revenue was 30.131 billion yuan, a year-on-year increase of + 27.3%, and the net profit attributable to the parent was 10.778 billion yuan, a year-on-year increase of 49.5%, with a weighted average roe14.5% 18%, year-on-year + 1.48pct. Q421’s revenue was 8.445 billion yuan, a year-on-year increase of – 31.8%, a month on month increase of + 16.9%, and the net profit attributable to the parent company was 3.324 billion yuan, a year-on-year increase of + 48.3%, a month on month increase of + 35.9%. Proportion of income: investment banking 20.9%, stocks 28.2%, fixed income 10.7%, asset management 4.7%, private equity 8.1%, wealth management 25.0%, others 2.4%. Income growth rate: investment banking + 11.9%, stocks + 53.5%, fixed income + 3.1%, asset management + 20.3%, private equity + 28.6%, wealth management + 34.2%, others + 6.6%.
Performance attribution: [investment bank] 31 A-share IPO underwriters, with an underwriting amount of 100538 billion yuan, ranking second in the industry, and 37 refinancing underwriters, with an underwriting amount of 81.314 billion yuan, ranking second in the industry; As a sponsor, he mainly underwrites 31 Hong Kong stocks, with an underwriting amount of US $5.651 billion, ranking second in the industry. The underwriting amount of corporate bonds + corporate bonds was 155728 billion yuan, ranking sixth in the industry. In the whole year, there were 116 M & A transactions, with a transaction volume of 117023 billion US dollars, ranking first in the industry for eight consecutive years.
The net return on equity investment in [stocks] increased, and the position of core dealer of derivatives remained. [asset management] the management scale at the end of the period was 1.13 trillion yuan, a year-on-year increase of + 120.0%, of which the collective asset management was 572635 billion yuan, a year-on-year increase of + 238.8%.
[private equity] at the end of the period, the subscription scale of CICC capital under management was 327818 billion yuan, a year-on-year increase of + 8.5%, and the subscription scale of new offering in that year exceeded 55 billion yuan. [wealth management] at the end of the period, the management of buyer’s charging assets was nearly 80 billion yuan, a year-on-year increase of + 180%, and the buyer’s investment consulting business developed rapidly; Wealth management assets were 3.00 trillion yuan, a year-on-year increase of + 16.2%, of which high net worth customer assets were 820435 billion yuan, a year-on-year increase of + 22.0%.
The business layout leads the industry, and the capital utilization ability continues to improve: the investment banking, wealth management, private equity and derivatives businesses that the company focuses on are deeply in line with the development trend of the industry, and the coordinated development of various businesses can also improve the profitability of the company. At the end of the year, the effective leverage ratio of the company was 6.59x, with a year-on-year increase of + 0.29pct, a record high and much higher than that of the peers.
Investment suggestion: the company’s performance exceeded expectations, mainly due to the bright growth of stock business and wealth management. Based on this, we raised the company’s profit forecast from 2022 to 24 by 9.7%, 9.9% and 8.3%. Company 2022ep / B2 13X, at the low level since listing, maintaining the “buy-b” rating.
Risk tip: the capital market scene is declining, the capital market reform is less than expected, and the competition in wealth management is intensifying.
