The undervalued value of the sector has the defensive attribute. It is preferred to have the reversal elasticity or high view. The credit improvement expectation of individual stocks is superimposed on the bottom of the valuation. It is suggested to allocate additional institutional business leaders. 1) The main policy line of deepening the reform of the capital market is still the core driving force driving the medium and long-term profit center of securities companies upward. With the superposition of the gradual recovery of the credit environment and market heat, the sector valuation returns to a lower range. It is suggested to pay attention to high-quality head securities companies whose profitability and valuation deviate from each other; 2) Individual stocks recommend Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) and China stock market news.
The value of the annual report is under pressure, the transformation of the industry is still continuing, and attention is paid to asset side repair opportunities. 1) At first glance, the performance characteristics of listed insurance companies in the past 21 years: the sales of premium end guarantee products are difficult, NBV is down by 20-30% year-on-year, the scale of agents is down by 30% – 40% year-on-year, non car companies maintain a good growth rate, and the return on investment at the asset end is slightly under pressure month on month; 2) Asset side: from the perspective of recovery, the asset side is the main driver of valuation repair. We are optimistic about the valuation repair opportunities brought by the improvement of peripheral sentiment and further easing of policies; 3) Debt side: considering the increasing uncertainty of the epidemic, it is expected that it will be difficult to have an inflection point in the first half of the year, and continue to pay attention to supply side innovation in the medium and long term; 4) At present, the PEV of the industry is only 0.39-0.79 times, which is at the bottom of history. From the perspective of one-year dimension, it is likely to obtain absolute and relative benefits. China Life Insurance Company Limited(601628) and Ping An Insurance (Group) Company Of China Ltd(601318) .
The short-term expansion of the leasing industry has slowed down, and high-quality leasing companies continue to be optimistic in the medium and long term. The market share of head leasing enterprises expanded steadily in the strong supervision cycle, and the growth slowed down due to the influence of supervision in the short term. They are optimistic about the growth of characteristic leasing enterprises in the transformation cycle, and recommend Jiangsu Financial Leasing Co.Ltd(600901) .
Core data tracking
Securities companies: the equity market has warmed up this week, with the Shanghai Shenzhen 300 link ratio of + 2.4%, the average daily transaction link ratio of – 4.1%, and the two financial balances link ratio of – 0.7%. The net inflow of Shanghai Hong Kong stock connect and Shenzhen Hong Kong stock connect is 12.725 billion and 10.177 billion respectively.
Insurance: the monthly premium growth rate of some listed insurance companies improved month on month in February; The yield on the five-year Treasury note was -0.03bp to 2.55%.
Industry News & Announcements of key companies
News: the CSRC issued an IPO approval document for an enterprise; Beijing stock exchange exempted all listed companies from listing fees in 2022.
Announcement: Zheshang Securities Co.Ltd(601878) public issuance of convertible bonds has been examined and approved by the CSRC Gf Securities Co.Ltd(000776) plans to repurchase shares of the company ranging from 203 million yuan to 406 million yuan.
Risk tips
1. The process of market institutionalization has slowed down;
2. The process of capital market reform has slowed down.
