\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 958 Orient Securities Company Limited(600958) )
Key investment points
Event: the company released its annual report. In 2021, the revenue was 24.370 billion yuan, a year-on-year increase of + 5.3%, and the net profit attributable to the parent company was 5.371 billion yuan, a year-on-year increase of + 97.3%, with a weighted average roe of 9.5% 02%, year-on-year + 4.17pct. Q421’s revenue was 5.53 billion yuan, a year-on-year increase of – 0.6% and a month on month increase of – 21.9%, and the net profit attributable to the parent company was 1.051 billion yuan, a year-on-year increase of + 420.4% and a month on month increase of – 35.2%. Proportion of income: brokerage and credit: 58.8%, self operation 17.8%, investment bank 7.1%, asset management: 22.7%, others – 6.3%. Income growth rate: brokerage and credit + 5.3%, self operation – 9.0%, investment bank + 6.0%, asset management + 25.9%, others + 23.7%.
Performance attribution: [asset management] the year-end management scale of asset management of Dongzheng Securities Co., Ltd. was 365929 billion yuan, a year-on-year increase of + 23%, of which the management scale of public funds was 269622 billion yuan, a year-on-year increase of + 35%. The net income of asset management business ranked first in the industry; Huitianfu fund’s non monetary fund management scale was 616596 billion yuan (as of March 30), ranking the fifth in the industry, with an annual net profit of 3.263 billion yuan, a year-on-year increase of + 27.2%. [brokerage and credit] brokerage revenue accounted for 1.74%, ranking the 20th in the industry, with a year-on-year increase of + 0.12pct; The number of brokerage customers was 2.191 million, a year-on-year increase of + 19%, and the entrusted assets were 902.8 billion yuan, a year-on-year increase of + 36%; The transformation of wealth management continued to advance, and the ownership scale of equity products was + 43% year-on-year, with characteristic advantages; The balance of two financial institutions at the end of the year was 24.601 billion yuan, a year-on-year increase of + 9.0%; The risk of stock pledge business was further released, and the credit impairment loss was – 66.2% year-on-year, which was the main reason for the profit growth in the current period. [proprietary] the investment scale of stocks, funds and bonds increased steadily, and the principal deposit of OTC derivatives was 29.5 billion yuan, a year-on-year increase of more than 20 times. [investment banking] significant growth in equity financing: 9 IPOs were underwritten, with an underwriting amount of 13.025 billion yuan, a year-on-year increase of + 27.3%, ranking 10th in the industry; 17 refinancing underwriters, with an underwriting amount of 26.628 billion yuan, a year-on-year increase of + 280.13%, ranking eighth in the industry.
The allotment of shares enhances the capital strength, and the proportion of asset management profit is high and flexible enough: the proposed allotment will raise no more than 16.8 billion yuan, and the capital investment will be 6 billion yuan for investment banks, 6 billion yuan for wealth management and securities finance, 3.8 billion yuan for self operated securities investment and 1 billion yuan for supplementary funds. Investment bank capitalization, wealth management and other business layout have opened up new growth points for the company, and the sustainability of the company’s performance can be expected. The operating profit of the asset management division of the company accounts for 55.9%, which is far higher than that of the same industry and has characteristic competitive advantages.
Investment suggestion: the performance of the annual report is consistent with that of the performance express, which is in line with expectations. Based on the performance of 2021, we slightly raised the profit forecast from 2022 to 24. The company’s 2022e P / B is 1.23x, which is at a low level in recent five years and maintains “Buy-A”.
Risk tips: the capital market scene is declining, market fluctuations are intensifying, policy risks and industry competition are intensifying, etc
