\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 958 Orient Securities Company Limited(600958) )
Event: the company disclosed its 2021 annual report, realizing an operating revenue of 24.4 billion yuan (YoY + 5%), a net profit attributable to the parent company of 5.4 billion yuan (YoY + 97%), and a roe of 9.02% (YoY + 4.17pct.), EPS 0.73 yuan (YoY + 92%).
We believe that the company’s highlights include: 1) the company’s roe has increased significantly, which is better than the industry; 2) The high growth of asset management business drives the performance growth, and the performance contribution of the public fund sector reaches 48%; 3) The transformation of wealth management is better, and the consignment products are mainly active rights and interests closed, with distinctive characteristics. 4) The investment banking business has made remarkable progress and its scale has increased greatly. 5) The provision for credit impairment was significantly reduced and the risk was further released.
Overall, the company’s level is better than 2pce (1.02%); 2) The leverage ratio of the company was 3.69 times, down 0.03 times, higher than that of the industry (3.38 times); 3) According to the business division of the traditional five sectors, in terms of income structure, asset management and brokerage account for the highest proportion, accounting for 15% respectively, and the rest of investment, investment banking and credit account for 14%, 7% and 6% respectively; Except for investment, the business income of the four sectors achieved high positive growth, with the highest credit growth rate of 88%, the growth rates of asset management, brokerage and investment banking reached 47%, 38% and 8% respectively, and the investment sector increased by – 36% year-on-year. 4) The company accrued credit impairment loss of 1.3 billion yuan, a year-on-year increase of – 66%.
The scale of asset management expanded rapidly and maintained the leading position in the industry. 1) By the end of 2021, the total scale of asset management of Dongzheng was 365.9 billion yuan, a year-on-year increase of + 23%, of which the scale of public funds was 269.6 billion yuan, a year-on-year increase of + 35%, of which the scale of long-term closed equity funds was 108 billion yuan, accounting for 69% of all equity funds. In 2021, the net income of asset management business of Dongzheng ranked first in the industry. 2) In 2021, huitianfu achieved a net profit of 3.3 billion yuan, a year-on-year increase of + 27%. By the end of 2021, the total scale of huitianfu had exceeded 1.2 trillion yuan, including 611.2 billion yuan of non goods. The two public funds contributed 48% of the company’s net profit. 3) The management scale of Dongzheng capital is 16.2 billion yuan and the investment amount is 9.1 billion yuan.
We will further promote the transformation of wealth management and have distinctive characteristics of consignment products. 1) The market share of the company’s securities brokerage business income was 1.74%, an increase of 0.1pct. 2) The sales scale of equity products of the company was 30.3 billion yuan, a year-on-year increase of + 9%, and the revenue related to product sales reached 960 million yuan, a year-on-year increase of + 36%. Among the products sold by the company on a commission basis, the closed structure of equity products under active management accounts for 62%, and actively guide customers to hold high-quality equity funds for a long time, leading the industry. By the end of the reporting period, the ownership scale of the company’s equity products had reached 64.7 billion yuan, a year-on-year increase of + 43%. 3) The two financing scale of the company was 24.6 billion yuan, a year-on-year increase of + 9%; The scale of stock pledge business was RMB 11.8 billion, a year-on-year increase of – 23%, and the risk was further released.
Investment banking has made remarkable progress, and the rate of return on proprietary investment has declined. 1) In terms of investment banking, the company’s IPO scale was 13 billion yuan, a year-on-year increase of + 27%, ranking the tenth in the industry; The refinancing scale was 26 billion yuan, a year-on-year increase of + 280%, ranking eighth in the industry; The debt commitment scale was 151.8 billion yuan, a year-on-year increase of + 15%. 2) In terms of proprietary investment, the trading scale of the company’s proprietary business was 117 billion yuan, a year-on-year increase of + 22%, of which stocks, bonds and funds accounted for 7%, 83% and 8% respectively. We calculated that the return on investment was 4.0%, down 3.4%.
Investment suggestion: buy – a investment rating. The company’s asset management business has significant advantages and will continue to benefit from the opportunities of the era of wealth management. In addition, the company is about to raise 16.8 billion shares, which is optimistic about the improvement of the company’s comprehensive competitiveness in the future. We expect the net profit attributable to the parent company from 2022 to 2024 to be 6.1 billion yuan, 7.2 billion yuan and 8.2 billion yuan respectively. Give the company a target price of 14.1 yuan, corresponding to 1.4x2022e Pb
Risk tip: liquidity has been significantly tightened, the development of wealth management has not been as expected, and the industry competition has intensified
