\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 958 Orient Securities Company Limited(600958) )
Core conclusion
The growth rate of performance is in line with expectations Orient Securities Company Limited(600958) 2021: the net profit attributable to the parent company was 5.4 billion yuan, yoy + 97%, and the growth rate was in line with expectations; The equity attributable to the parent shareholders was 64.1 billion yuan, up + 6.5% from the end of the 20th year, with a weighted average roe of 9.5% 02%, compared with 20 years + 4.17pcts. Excluding the impact of other business income, the company’s brokerage, investment banking, asset management, interest and investment income accounted for 22.8%, 10.7%, 22.8%, 9.2% and 29.9% respectively. The company’s dependence on proprietary investment decreased, and the proportion of brokerage and asset management income increased significantly.
Investment management business contributes a large performance increment to the company. At the end of the period, the asset management scale of Dongzheng was 365.9 billion yuan, an increase of 22.6% over the end of the previous year; The public offering scale of securities companies was 269.6 billion yuan, yoy + 35.1%. As of the end of the reporting period, the return rate of active management of stock investment of Dongzheng asset management in recent seven years was 294.35%, ranking first in the industry. Huitianfu achieved a net profit of 3.263 billion yuan, yoy + 27.2%; The net profit of asset management of Dongzheng was 1.438 billion yuan, yoy + 77.8%. After considering the shareholding ratio of the two subsidiaries, the profit contribution reaches 48%.
The securities brokerage business has distinctive characteristics, and the scale of stock + mixed public offering ranks high. In 2021, the market share of securities brokerage business income was 1.74%, ranking 20th in the industry, with a year-on-year increase of 0.12pct. The company has opened 356000 new accounts, yoy + 15%. At the end of the period, the number of customers of the company was 2.191 million, an increase of 19% over the beginning of the period, and the total amount of custody assets was 902.8 billion yuan, an increase of 26% over the beginning of the period; The company’s stock + mixed public offering fund has a scale of 42.4 billion yuan, ranking seventh among securities companies; The annual commission sales revenue was 570 million yuan, yoy + 45%, accounting for 16.8% of the brokerage business revenue.
The structure of securities financial business was optimized and risks were released. At the end of the period, the company’s two financial balances were 24.6 billion yuan, an increase of 9% over the end of the previous year; The balance of stock pledge scale was 11.8 billion yuan, down 23.5% from the end of the previous year. Credit impairment loss decreased by 66% year-on-year to RMB 1.314 billion, which is the core driver of profit improvement.
Investment suggestion: the application for A-share allotment of the company has been approved by the CSRC, and the raised funds do not exceed 16.8 billion yuan. The replenishment of funds will help to broaden the business development space of the company. We expect the net profit attributable to the parent company in 22 years to be 6.124 billion yuan, yoy + 14.0%, maintaining the “buy” rating.
Risk tips: market fluctuation risk, lower than expected capital market reform, operation and business risk.
