\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 999 China Merchants Securities Co.Ltd(600999) )
In 2021, the company achieved revenue of 29.429 billion yuan (+ 21.22%), net profit attributable to shareholders of listed companies of 11.645 billion yuan (+ 22.69%), net assets attributable to shareholders of listed companies of 112503 billion yuan (+ 6.40%) and basic earnings per share of 1.25 yuan (+ 17.92%) at the end of the reporting period.
The brokerage business has been steadily improved, and the transformation of wealth management has achieved remarkable results. In 2021, the company’s net brokerage fee income was 7.462 billion yuan (+ 15.94%). Growth factors of the company’s brokerage business: first, the market trading volume increased significantly in 2021, and the trading volume of A-share base increased by 24.66% year-on-year, driving the growth of the company’s income from agency trading of securities, and the net income from agency trading of securities (including seat leasing) was 5.528 billion yuan (+ 11.00%). Second, the company’s wealth management transformation has achieved remarkable results. In 2021, the company achieved a net income of 802 million yuan (+ 36.72%) from the sale of financial products on a commission basis, and the number of public funds was 102.9 billion yuan, ranking fifth in the industry. In terms of customer resources, as of the end of the reporting period, the number of wealth management customers of the company reached 563500 (+ 24.12%), including 30600 high net worth customers (+ 26.97%), and the scale of customer assets reached 1.67 trillion yuan (+ 21.90%).
The IPO underwriting scale has increased significantly and the project reserve is rich. In 2021, the company’s net investment banking fee income was 2.542 billion yuan (+ 18.46%). Completed 23 IPO projects, with a lead underwriting amount of 21.957 billion yuan (+ 52.63%); Completed 20 refinancing lead underwriting projects, with a lead underwriting amount of RMB 21.003 billion (- 47.16%); The total scale of domestic bond issuance reached 39.61 trillion yuan (+ 5.42%). In addition, the company has rich reserves of IPO projects. At the end of 2021, the company’s A-share IPO was under review and has passed the review, with 21 projects to be issued and registered, ranking fourth in the industry.
The transformation of asset management business has been steadily promoted, and the profitability of public funds is strong. In 2021, the company’s net income from handling fees of asset management business was 1.039 billion yuan (- 9.16%). By the end of the reporting period, the company’s active management scale (excluding the special asset management plan) was 346413 billion yuan (+ 29.72%), accounting for 82.87% (+ 26.99pct). Boshi fund and China Merchants Fund, subsidiaries of the company’s public funds, performed well in 2021. The asset management scale of Boshi Fund (excluding subsidiaries) was 1655.3 billion yuan (+ 25.45%), of which the management scale of public funds (excluding feeder funds) was 989.2 billion yuan (38.81%), and the net profit in 2021 was 1778.7 million yuan (+ 42.63%). The asset management scale of China Merchants Fund is 1080 billion yuan (+ 37.71%), of which the asset management scale of public funds (excluding feeder funds) is 741 billion yuan (+ 47.21%), and the net profit in 2021 is 1602.6 million yuan (+ 77.31%).
Investment suggestion: the company has achieved remarkable results in the transformation of digitization, wealth management and active management. We predict that the basic earnings per share of the company from 2022 to 2024 will be 1.16 yuan, 1.32 yuan and 1.47 yuan respectively, and the net assets per share will be 11.07 yuan, 12.13 yuan and 13.29 yuan respectively. Combined with the current valuation and stock price of the company, we will maintain the “hold” rating.
Risk tip: Sino US trade friction and strengthened industry supervision
