\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 377 China Industrial Securities Co.Ltd(601377) )
Core conclusion
The performance grew steadily, and the public fund business was the highlight China Industrial Securities Co.Ltd(601377) in 2021, the operating revenue reached 18.97 billion yuan, with a year-on-year increase of 7.9%; The net profit attributable to the parent company was 4.74 billion yuan, yoy + 18.5%, a record high. The weighted roe was 12.04%, with a year-on-year increase of + 0.97pct. Brokerage, investment banking, asset management + public funds, credit and proprietary income accounted for 22.5%, 7.8%, 31.4%, 10.9% and 23.8% respectively.
Its public offering profits have achieved high growth, and its wealth management business has distinctive characteristics. 1) After considering the shareholding ratio of the company’s two major public funds, the profit proportion in 2021 will reach 28%. Among them, the net profit of Xingzheng global (holding 51%) was 2.24 billion yuan, a year-on-year increase of + 40%; The net profit of China Southern Fund, which is 9.15% owned by the company, was 2.2 billion yuan, a year-on-year increase of + 46%. Xingzheng asset management scale was 60 billion yuan, up + 4.3% from the end of the previous year;
The revenue from asset management business was 240 million yuan, yoy + 73%. 2) The sales revenue + rental income of trading unit seats accounted for 45%. The parent company achieved a net income of 1.52 billion yuan (excluding seats) from securities trading business, yoy + 17%. The rental of trading unit seats is 1.03 billion yuan, yoy + 32%, accounting for 26% of the brokerage business income; The income from selling financial products on a commission basis was 660 million yuan, yoy + 45.6%, accounting for 19% of the brokerage income.
The income from investment business fell slightly, and the net interest income achieved high growth. 1) In the past 21 years, the company has achieved self operated investment income of 3.78 billion yuan, yoy-20%. At the end of the 21st century, the total scale of financial investment was 82.5 billion yuan, yoy + 12%, and the proportion of stock investment decreased to 14%. The company set up a new level-1 department, financial derivatives department, to accelerate the layout of OTC derivatives business. In 2021, the margin payable to customers was 3.3 billion yuan, yoy + 490%. 2) At the end of the 21st century, the balance of the two financial institutions of the company was 33.6 billion yuan, and the interest income of the two financial institutions was 2.1 billion yuan, yoy + 35%, and the market share increased to 1.8%; The self financing scale of stock pledge repurchase business was 2.3 billion yuan, down 43% from the end of the previous year. The annual net interest income was 1.72 billion yuan, yoy + 48%.
Investment suggestion: the company has clear strategic positioning, solid progress in wealth management and high contribution to the performance of public funds. After the implementation of the share allotment plan, it will effectively alleviate the bottleneck of the company’s capital. We expect the net profit attributable to the parent company in 2022 to be 5.3 billion yuan, yoy + 11%, maintaining the “buy” rating.
Risk warning: market fluctuation risk, less than expected progress in share allotment, and intensified industry competition
