\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 688 Huatai Securities Co.Ltd(601688) )
Performance overview: Huatai Securities Co.Ltd(601688) released the annual report of 2021. The company’s Q4 single quarter / 2021 annual revenue was 11 / 37.9 billion yuan, a year-on-year increase of + 55% / + 21%; The net profit attributable to the parent company was 2.33 billion yuan, a year-on-year increase of + 16% / + 23%. The revenue growth rate of asset light businesses is relatively balanced, and the annual revenue growth rate of brokerage / investment bank / asset management is + 22% / + 19% / + 27%; In terms of heavy asset business, credit business performed better than self operation, and the annual revenue growth rate was + 44% / + 11%. Q4 asset management / other business income (mainly commodity sales) boosted the overall performance. Q4 asset management / other business income was + 220% / + 174% year-on-year. The profit side of Q4 was dragged down by the significant provision of credit impairment loss of RMB 1 billion (year-on-year + 456%) at the expense side, and the profit growth rate in a single quarter was only + 16%. The company has 21 years of roe9 84%, an increase of 1.23pct over the previous year, and the profitability continued to improve.
Asset light businesses have developed in a balanced manner, and wealth management investment banks are at the head of the industry. In terms of wealth management business, with the power of the industry-leading digital platform, the company’s stock based trading volume was 4.2 billion yuan, a year-on-year increase of + 24%, and the market share has ranked first for many years; The annual business income from selling financial products on a commission basis was 780 million yuan, a year-on-year increase of + 57%; 2021q4 company’s stock + mixed public offering / non goods public offering has a holding scale of 85 / 93.2 billion yuan, ranking second in the industry; The authorized assets of fund investment consulting business are 19.5 billion yuan and the number of customers is 720000; Affected by the new regulations on asset management, the scale of the company’s asset management continued to decline, but the scale of its fund management increased significantly. The scale of non commodity public offering of Nanfang Fund (holding 41%) and Huatai Bairui (holding 49%) increased by 40% and 40% respectively at the end of 21 compared with the end of the previous year. In terms of investment banking, the number / amount of equity underwriting in 21 years was + 27% and + 19% year-on-year, ranking third and fourth in the industry respectively; Bond underwriting focused on local bonds and financial bonds, and the underwriting amount jumped to the top three in the industry.
In terms of heavy asset business, the company’s institutional business focuses on building all-round and high-quality comprehensive financial services, and the scale of customer demand business has expanded significantly. By the end of the 21st century, the company’s two financing balance was 137.7 billion yuan, a year-on-year increase of + 11%, of which the balance of securities lending business of main service institutions was 24.7 billion yuan, with a market share of 20.6%, an increase of 2.2pct compared with 21h1, and the annual credit impairment loss decreased by 58% compared with the previous year. The scale of over-the-counter derivatives business dominated by customer demand has increased significantly. By the end of the year, the number of existing contracts of the company’s revenue swap business was 6862 (year-on-year + 160%), and the existing scale was 152.6 billion yuan (year-on-year + 200%); The number of existing contracts of OTC option business is 1753 (year-on-year + 161%), and the survival scale is 122.2 billion yuan (year-on-year + 237%). The amount of equity trading assets was 116.3 billion yuan, a year-on-year increase of + 97%, and the nominal principal of equity derivatives was 593.4 billion yuan, a year-on-year increase of + 149%.
Investment suggestion: the company relies on long-term financial technology investment and early layout digital transformation, and uses the unified wealth management and institutional service platform to establish a leading comprehensive financial service level. We are optimistic that the company will further cultivate competitive advantages in wealth management and institutional business. Considering that the market situation and the scale of the new development fund are lower than expected this year, the 22-year profit forecast is adjusted from 15.2 billion yuan to 14.9 billion yuan. It is expected that the net profit attributable to the parent company from 2022 to 2024 will reach 14.9/188/22.2 billion yuan, with a year-on-year growth rate of 12% / 26% / 18%. The current A-share price corresponds to 22ebvps0 9 times Pb, the valuation is at an all-time low, there is more room for repair, and the “buy” rating is maintained.
Risk tips: market fluctuation risk, the promotion of registration system reform is less than expected, and the expansion of private placement market is less than expected
