\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 995 China International Capital Corporation Limited(601995) )
Event: the company disclosed its 2021 annual report, realizing an operating revenue of 30.1 billion yuan (YoY + 27%), a net profit attributable to the parent company of 10.8 billion yuan (YoY + 50%), and a roe of 14.64% (YoY + 1.13pct.), EPS 2.16 yuan (YoY + 35%).
We believe that the highlights of the company include: 1) record performance, roe is significantly better than peers, and leverage remains stable with business growth after listing; 2) High quality growth of stock business, leading transformation of wealth management buyer investment advisers, and investment banks further consolidate their advantages at home and abroad; 3) The level of overseas business income and profit margin was further improved.
Overall: 1) the company’s roe level reached 14.64%, increased by 1.13pct, leading the industry (7.83%); 2) The leverage ratio of the company was 6.59 times, an increase of 0.18 times, higher than that of the industry (3.38 times); 3) In terms of income structure, investment income accounts for the highest proportion, up to 49%, and the rest of investment banks, brokers and asset management account for 23%, 20% and 5% respectively; 4) The growth rate of investment banking and brokerage was – 31% and – 36% respectively, with the highest growth rate of investment banking and brokerage. 5) Overseas business revenue increased by + 41% year-on-year to RMB 7.1 billion, with a profit margin of 70.1%, an increase of 18.28 PCT and a revenue contribution of 24%.
High quality growth of stock business and breakthroughs in fixed income: 1) in 2021, the company’s stock business revenue reached 8.5 billion yuan, with a year-on-year increase of + 54%. Since 2018, the compound growth rate has exceeded 60%, and the profit margin has reached 83%, with a year-on-year increase of 9.6pct. It is one of the core revenue generating business segments of the company. By the end of 2021, the nominal principal of the company’s equity derivatives was 432.6 billion, a year-on-year increase of + 44%. 2) The company’s fixed income business covers a wide range. By the end of 2021, the company’s fixed income position was 115.9 billion yuan, a year-on-year increase of + 6%. The trading volume of interest rate bonds was 14.1 trillion yuan, ranking first in the whole market, and the trading volume of credit bonds was 4.7 trillion yuan.
The scale of asset management exceeded trillion, and the ranking of active management was improved: 1) by the end of 2021, the scale of the company’s asset management business was 1128.3 billion yuan, a year-on-year increase of + 120%, of which the scale of collective and single asset management was 568.3 billion yuan and 560 billion yuan, a year-on-year increase of + 244% and + 61% respectively. The active management scale was 857.5 billion yuan, ranking from fifth to second. 2) By the end of 2021, the asset management scale of CICC fund was 85.2 billion yuan, a year-on-year increase of + 53%, of which the scale of public funds was 81.3 billion yuan, a year-on-year increase of + 51%. 3) The subscription scale of private equity business under management is 327.8 billion yuan, and the subscription scale of new offering is more than 55 billion yuan.
The transformation of wealth management buyer’s investment adviser has achieved initial results and continued to expand customer base coverage: 1) the company’s trading market share reached 2.24%, increasing by 0.11pct; 2) The average daily scale of Liangrong was 37.4 billion yuan, a year-on-year increase of + 43%; 3) The sales scale of financial products was 256.8 billion yuan, a year-on-year increase of + 72%. The number of products exceeded 300 billion, a year-on-year increase of + 90%. The company’s buyer charging assets were nearly 80 billion yuan, a year-on-year increase of + 180%. 4) The number of wealth management customers of the company was 4.54 million, with a year-on-year increase of + 23%, including 35000 high net worth customers and an average household asset scale of more than 23 million yuan.
Investment banking consolidated its advantages at home and abroad and ranked first in the industry: 1) domestically, the company completed an IPO scale of 100.5 billion yuan, a year-on-year increase of + 61%, ranking second in the industry; The refinancing scale was 81.3 billion yuan, a year-on-year increase of + 101%, ranking second in the industry; Debt commitment was 729.7 billion yuan, a year-on-year increase of + 12%; 2) Overseas, as the sponsor / global Coordinator / Bookrunner, the company mainly underwrites Hong Kong stock IPOs with a scale of 6 / 57 / 4 billion yuan, ranking second / first / first in the industry respectively. As the bookkeeper, the company completed the ipo1.3 billion yuan of Chinese enterprises, ranking fourth in the industry.
Investment suggestion: buy – a investment rating. The company is the most distinctive and growing head securities company, which has benefited from the adjustment of residents’ asset allocation, the opening of capital market and the improvement trend of institutionalization for a long time. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 12.2 billion yuan, 13.6 billion yuan and 15.8 billion yuan respectively. Give the company a target price of 48.1 yuan, corresponding to 2.5x2022e Pb
Risk tips: liquidity has been greatly tightened, policy promotion has been less than expected, and the capital market has fluctuated sharply
