\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 688 Huatai Securities Co.Ltd(601688) )
Huatai Securities Co.Ltd(601688) disclosed the annual report of 2021, and the performance of 2021 was in line with expectations. In 2021, the company achieved an annual operating revenue of 37.905 billion yuan, a year-on-year increase of 20.54%; The net profit attributable to the parent company was 13.346 billion yuan, a year-on-year increase of 23.32%. In 2021, the weighted average return on net assets was 9.84%, an increase of 1.23 percentage points year-on-year. The basic earnings per share was 1.47 yuan, a year-on-year increase of 22.50%.
The influence of wealth management market was further enhanced. The company strives to build a new wealth management business platform structure and operation mode, continue to expand the scale of customers and customer assets, and further enhance the market influence of wealth management business. In 2021, the trading volume of the group’s stock fund reached 42.29 trillion yuan, ranking first in the industry. By the end of the reporting period, the total assets of the company’s customer accounts had reached 5.40 trillion yuan. The authorized assets of the fund investment consulting business are 19.511 billion yuan and 722100 participating customers. Its mobile app “Zhangle fortune” continues to play an important role as the carrier of the group’s wealth management business core platform, with an average monthly activity of 8.9131 million. As of the end of the reporting period, the monthly activity was 110181 million, ranking first among securities company apps. Since its launch, the cumulative download volume of “Zhangle global” has been 927300, and the average monthly activity during the reporting period was 103100.
Investment banking revenue increased by 19.22% year-on-year. In 2021, the company achieved investment banking revenue of 4.344 billion yuan, a year-on-year increase of 19.22%. By the end of the reporting period, the group had completed the main underwriting amount of equity (including initial public offering, additional issuance, allotment of shares, preferred shares, convertible bonds and exchangeable bonds) of 176247 billion yuan, ranking fourth in the industry; The cumulative number of IPOs accepted under the registration system of science and innovation board and gem is 109, ranking third in the industry.
Revenue from asset management business increased by 26.59% year-on-year. In 2021, the company realized an asset management business revenue of 3.772 billion yuan, a year-on-year increase of 26.59%. By the end of the reporting period, the total asset management scale of Huatai asset management company had reached 518573 billion yuan, and the issuance scale of enterprise AB (s asset securitization) of Huatai asset management company had reached 167112 billion yuan, ranking third in the industry.
The income from investment business increased by 10.64% year-on-year, and the income from credit business increased by 43.97% year-on-year. In 2021, the company realized an investment business income of 11.271 billion yuan, a year-on-year increase of 10.64%; The revenue from credit business was 3.751 billion yuan, a year-on-year increase of 43.97%.
Risk warning: market decline brings uncertainty to bond business performance and valuation repair; Stricter financial supervision; Intensified market competition; Tight liquidity leads to rising financing costs; The promotion of innovation is less than expected.
Investment suggestion: we predict that the net profit of the company from 2022 to 2024 will be 15.8 billion yuan, 18.9 billion yuan and 21.8 billion yuan respectively, with a year-on-year increase of 18.7% / 19.1% / 15.6%. The PE corresponding to the current stock price is 8.6/7.2/6.2x and Pb is 1.2/1.1/1.0x. With the continuous reform of the capital market, the industry will accelerate the formation of a differentiated development pattern. As a leading securities firm, the company continues to promote digital transformation with science and technology, and the transformation effect is remarkable. We maintain its “buy” rating.
