\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 211 Guotai Junan Securities Co.Ltd(601211) )
Overview of 2021 annual report: Guotai Junan Securities Co.Ltd(601211) 2021 achieved an operating revenue of 42.817 billion yuan, a year-on-year increase of + 21.64%; The net profit attributable to the parent company was 15.013 billion yuan, a year-on-year increase of + 34.99%. The basic earnings per share was 1.65 yuan, a year-on-year increase of + 37.50%; The weighted average return on net assets was 11.05%, year-on-year + 2.51 percentage points. In 2021, it is proposed to send RMB 6.80 (including tax) in October Guotai Junan Securities Co.Ltd(601211) 2021 business performance growth is better than the industry average.
Comments: 1. In 2021, the proportion of the company’s investment income (including changes in fair value) and net income from other businesses increased, and the proportion of net income from brokerage, investment banking, asset management and interest decreased. 2. The traditional brokerage business remained the industry leader, and the net fee income was + 12.71% year-on-year. 3. The reform of investment banking business was deepened, the total business volume increased steadily, and the net fee income was + 8.76% year-on-year. 4. The structural adjustment of asset management business has achieved initial results, and the net fee income is + 15.99% year-on-year. 5. The self operated business achieved good results, and the investment income (including changes in fair value) was + 29.74% year-on-year. 6. The scale of the two financial institutions grew steadily, the scale of stock pledge continued to drop, and the net interest income was – 1.76% year-on-year. 7. International business declined year-on-year, with business income of – 18.60% year-on-year.
Investment suggestion: as an old head securities firm spanning the whole process and multiple cycles of the development of China’s capital market, the company has gone through wind and rain and made progress with determination, and has always maintained strong comprehensive competitiveness. Its capital scale, profitability, business strength and risk management ability continue to rank in the forefront of the industry. It is estimated that the company’s EPS in 2022 and 2023 will be 1.61 yuan and 1.69 yuan respectively, and BVPs will be 16.19 yuan and 17.21 yuan respectively. Calculated according to the closing price of 15.91 yuan on April 6, the corresponding P / E will be 9.88 times and 9.41 times respectively, and the corresponding P / B will be 0.98 times and 0.92 times respectively, maintaining the investment rating of “overweight”.
Risk tips: 1 The weakening of equity and fixed income market environment led to the decline of the company’s performance; 2. Market fluctuation risk; 3. The progress and strength of comprehensively deepening the reform of capital market are less than expected
