\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 995 China International Capital Corporation Limited(601995) )
Key investment points: growth is the most significant feature of China International Capital Corporation Limited(601995) compared with other leading securities companies. The net profit attributable to the parent company has maintained a high growth rate for 16 years, from 1.8 billion yuan to 10.8 billion yuan in 21 years, with a compound growth rate of 43% (significantly higher than other securities companies). The performance ranking has risen from 17th to 7th in the industry, except for the driving factors at the denominator side (financing + M & A), The company makes every effort to build a buyer’s investment consulting model, wealth management and customer demand driven institutional business, and continues to effectively improve the company’s profit margin, leverage and roe.
Performance overview: China International Capital Corporation Limited(601995) released the annual report of 2021. Q4 single quarter / 2021 annual revenue of 8.4/30.1 billion yuan, a year-on-year increase of + 23% / + 27%; The net profit attributable to the parent company was 3.3/10.8 billion yuan, a year-on-year increase of + 44% / + 50%. Big wealth management driven by product sales, asset management and private equity management performed well. The annual growth rates of brokerage and asset management were + 31% and + 35% respectively. Investment trading is still the business line with the highest contribution to performance, with investment income accounting for 49%. Annual roe14 6%, an increase of 1.1pct over the previous year. The leverage ratio (net of customer margin) increased from 6.43 times of the previous year to 6.62 times, but lower than 21h6.5 times, driven by customer demand businesses such as trading capital intermediary 82 times lower.
Wealth management focused on the non-standard transfer needs of high net worth people. The buyer’s investment adviser took the lead in the transformation industry, and the scale of buyer’s charged assets increased by more than 180% China International Capital Corporation Limited(601995) is making every effort to build the buyer’s investment consulting ability, and rapidly expand the product scale through the buyer’s investment consulting service with the “deep wealth management” based on business collaboration, asset creation ability, research ability and high-end investment consulting team. By the end of the 21st century, the number of products had exceeded 300 billion (21h1 exceeded 200 billion), a year-on-year increase of + 90%. The charging assets of wealth management buyers were nearly 80 billion yuan (50 billion yuan in 21h1), a significant year-on-year increase of more than 180%. CICC wealth investment consulting team has more than 3000 people, including more than 1000 private wealth consultants serving high net worth customers. The number of high net worth individual customers was 34900, with a year-on-year increase of + 36.2%. The total asset value of high net worth individual customers’ accounts was 820.4 billion yuan, with a year-on-year increase of + 22.0%. In terms of private equity management, CICC’s CICC capital has a stable leading position in the industry in terms of management scale. By the end of 2021, CICC capital had subscribed 327.8 billion yuan under management, which continued to contribute management fee income and investment income to the company.
Deeply cultivate the institutional customer base, and the growth rate of stock business income is + 53.5%. Investment banks continue to maintain their traditional leading position. The initial / refinancing scale of equity investment banks in the A-share market was + 61% / 101% year-on-year, ranking second in the industry. In terms of overseas business, the company ranks first in the overseas underwriting scale of Chinese enterprises in the market. The growth rate of stock business continued to be high. Among the six business segments, the growth rate of stock business reached the highest 53.5%, and the profit margin increased by 9.7pct to 82.7% compared with the previous year. In terms of over-the-counter derivatives, the corresponding nominal principal of equity derivative financial instruments increased by 44% / 9% respectively compared with 20 / 21h. The hedging position of over-the-counter derivatives in stock trading financial assets reached 108.4 billion yuan, a year-on-year increase of + 14.45%, accounting for 85% of stock trading financial assets.
Investment suggestion: the company’s performance growth and profitability are outstanding among the leading securities companies. We are optimistic about CICC’s differentiated in-depth wealth management model and the synergy generated by mutual promotion with institutional business. Considering that the market situation and the scale of new development fund are not as expected this year, the profit forecast for 22 / 23 years has been reduced accordingly, from 15.9/22.3 billion yuan to 13.3/16.8 billion yuan. It is expected that the net profit attributable to the parent company will increase by 23% / 27% / 19% year-on-year from 2022 to 2024, At present, the corresponding 22ebvps of a / H share price is 2.30/0.97 times Pb respectively. It is recommended to pay attention to CICC H.
Risk tip: the market fluctuates violently, the promotion of registration system is less than expected, and the expansion of private placement market is less than expected
