\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 76 Gf Securities Co.Ltd(000776) )
Event: Gf Securities Co.Ltd(000776) released the annual report of 2021. The company’s operating revenue / net profit attributable to the parent company in 21 years was 34.25/10.85 billion yuan, with a year-on-year increase of + 17% / + 8% and a roe of 10.6%, which was basically the same as that of the previous year.
The increase in trading volume drives the growth of brokerage business income, and the scale of consignment funds has increased. In the past 21 years, the company’s net income from brokerage business was 7.97 billion yuan, a year-on-year increase of 21.3%. The growth of brokerage business mainly benefited from the increase of trading volume. The company’s stock based trading volume increased by 22.9% year-on-year and the market share was 4.51%, an increase of 0.36pct over the previous year. In terms of consignment business, the revenue from consignment of financial products reached 1.1 billion yuan in 21 years, an increase of 85% year-on-year. In terms of scale, the sales scale of financial products reached 631.1 billion yuan, a year-on-year increase of + 4.2%, of which the consignment fund increased by 44% year-on-year to 105.7 billion yuan, ranking the third among securities companies. The company’s margin trading business was 94 billion yuan, an increase of 11.5% over the previous year and a market share of 5.1%.
The resumption of investment banking qualification is expected to re enhance the company’s institutional business strength. In the past 21 years, the company’s net income from investment banking business was 430 million yuan, a year-on-year decrease of 33%, which was mainly affected by the restriction of business qualification. In the 21st year, the company completed the equity business with 4 main underwriters, with the main underwriting amount of 1.43 billion yuan; 40 issues of bonds were issued, and the amount of the lead underwriter was 31 billion yuan. The company regained its investment banking qualification in 21 years. The company’s traditional investment banking business has strong strength. After the adjustment of the company’s team and the restoration of business qualification, we believe that the company’s investment banking business is expected to achieve rapid growth and drive the improvement of the company’s overall institutional business strength.
The asset management business has made great efforts, and the scale of fund subsidiaries has expanded rapidly. In 21 years, the company realized a net income of 9.95 billion yuan from handling fees of asset management business, a year-on-year increase of 50.7%. At the end of the year, the total scale of asset management was 493.2 billion yuan, a year-on-year increase of 62%, mainly due to the year-on-year increase of 157.6% of collective asset management products. The scale of the fund’s subsidiaries maintained rapid expansion. At the end of the year, the total scale of public funds of GF was 1.13 trillion yuan, an increase of 47.97% over the end of 2020. The revenue / net profit of GF in the year was 93.5/2.61 billion yuan respectively, an increase of 50% / 43% year-on-year; The total scale of public funds managed by e fund was 1706429 billion yuan, an increase of 39.28% over the end of 2020. In the 21st year, the net profit was 4.53 billion yuan, a year-on-year increase of 65%.
Investment suggestion: we believe that Gf Securities Co.Ltd(000776) has obvious advantages in large asset management business, and the advantages of collective management and fund subsidiaries will be more obvious in the big wealth management track. As an industry leader, the company has stable performance and diversified sources of income. The investment banking business has begun to return to normal, which is expected to improve the overall institutional business strength of the company. The company plans to repurchase A-Shares and implement restricted stock incentive or cancellation, with a total repurchase amount of 203 million to 406 million, which is conducive to the establishment of long-term incentive mechanism and the stability of core employees, and show confidence in the development prospect of the company. In view of the market adjustment and the decline of fund sales scale in the first quarter of 22 years, we expect the net profit of the company in 22 years and 23 years to be 12.404 billion yuan (down 3.1%) and 14.493 billion yuan (down 2.1%) respectively, and add a 24-year net profit forecast of 17.347 billion yuan to maintain the “overweight” rating of a shares.
Risk warning: the promotion of capital market policies is not as expected; Sharp market shocks affect the performance of stock prices.
