\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 999 China Merchants Securities Co.Ltd(600999) )
Overview of 2021 annual report: China Merchants Securities Co.Ltd(600999) 2021 achieved an operating revenue of 29.429 billion yuan, a year-on-year increase of + 21.22%; The net profit attributable to the parent company was RMB 11.645 billion, a year-on-year increase of + 22.69%. The basic earnings per share was 1.25 yuan, a year-on-year increase of + 17.92%; The weighted average return on net assets was 11.52%, year-on-year + 0.67 percentage points. In 2021, it is proposed to pay 5.40 yuan (including tax) in October, and the total dividend distribution accounts for 40.33% of the net profit attributable to the common shareholders of the listed company in the consolidated statements China Merchants Securities Co.Ltd(600999) 2021 the growth rate of business performance is better than the industry average.
Comments: 1. In 2021, the proportion of the company’s investment income (including changes in fair value) and net income from other businesses increased, and the proportion of net income from brokerage, investment banking, asset management and interest decreased; Among them, the proportion of investment income (including changes in fair value) increased significantly. 2. A number of indicators of brokerage business increased gratifying, and the net fee income was + 17.80% year-on-year. 3. The volume of investment banking business decreased and the quality increased, and the net fee income was + 18.45% year-on-year. 4. The proportion of monthly average scale of private placement active management increased significantly year-on-year, and the net fee income was – 9.10% year-on-year. 5. Both equity and fixed income proprietary trading significantly outperformed the benchmark index, and the investment income (including changes in fair value) was + 41.28% year-on-year. 6. The balance of the two financial institutions increased steadily, further reduced the scale of pledge, and the net interest income was – 34.86% year-on-year.
Investment suggestion: as the largest securities company in the state-owned assets system of the State Council, the company has won the category a AA regulatory rating of securities companies for 14 consecutive years; Backed by China Merchants Group, the company has the service ability of full-function platform and full industrial chain, which helps to create characteristic business and differentiation advantages and provide one-stop services for customers; The company’s wealth management business has a solid foundation, increasing competitiveness and forming competitive advantages in some business areas. It is estimated that the company’s EPS in 2022 and 2023 will be 1.22 yuan and 1.32 yuan respectively, and BVPs will be 11.77 yuan and 12.38 yuan respectively. Calculated according to the closing price of 14.47 yuan on March 31, the corresponding P / E will be 11.86 times and 10.96 times respectively, and the corresponding P / B will be 1.23 times and 1.17 times respectively, maintaining the investment rating of “overweight”.
Risk tips: 1 The weakening of equity and fixed income market environment led to the decline of the company’s performance; 2. Market fluctuation risk; 3. The progress and strength of comprehensively deepening the reform of capital market are less than expected
