\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 377 China Industrial Securities Co.Ltd(601377) )
Event:
China Industrial Securities Co.Ltd(601377) released the annual report for 2021, realizing an operating revenue of 18.97 billion yuan, a year-on-year increase of 7.92%; The net profit attributable to shareholders of listed companies was 4.743 billion yuan, a year-on-year increase of 18.48%.
Core view:
The net profit attributable to the parent company has broken through a new high, and the structural characteristics of operating income are obvious
During the reporting period, the company achieved an operating revenue of 18.97 billion yuan, a year-on-year increase of 7.92%; The net profit attributable to shareholders of listed companies was 4.743 billion yuan, a year-on-year increase of 18.48%, creating a new high in the company’s performance. ROE12. 02%, a year-on-year increase of 0.93pct. In terms of revenue composition, in 2021, the operating revenue of the company’s main businesses such as investment banking / brokerage / self operation / asset management / fund management / interest was RMB 1.242/35.61/37.27/2.42/47.12/1.724 billion respectively, accounting for 7% / 19% / 20% / 1% / 25% / 9% respectively. The revenue structure has obvious characteristics: the revenue of brokerage, self operation and fund management contributed significantly.
Under the background of active market trading, the development of brokerage and financing business is in line with expectations
In 2021, China’s stock market was extremely active, and it has become normal that the average daily stock turnover exceeded trillion. The development of brokerage and financing business of the company is in line with the growth expectation. The annual trading volume of the company was 9.13 trillion yuan, a year-on-year increase of + 21.1%. In the brokerage business, the income from the agency trading of securities was 2.26 billion yuan, a year-on-year increase of + 16.7%; The revenue of trading unit seats was 1.025 billion yuan, a year-on-year increase of + 32.3%. Benefiting from the promotion of wealth management transformation, the business income from selling financial products on a commission basis was 664 million yuan, a year-on-year increase of + 45.3%. The income from the two financing businesses also increased with the active market transactions. In 2021, the company’s interest income from margin trading and securities lending reached 2.164 billion yuan, a year-on-year increase of + 28.7%.
Fund management business income has become an important starting point for the company’s large asset management performance
During the reporting period, in the large asset management business, the company’s fund management business revenue was 6.13 billion yuan, a year-on-year increase of 46%, mainly benefiting from the rapid development of its holding Xingzheng Global Fund. By the end of the reporting period, the total asset management scale of Xingzheng Global Fund was 673 billion yuan, an increase of + 27% over the end of the previous year, including 590.1 billion yuan of public funds, an increase of 30% over the end of the previous year. Xingzheng capital, its wholly-owned private equity fund, also continued to improve its market competitiveness. As of the end of the reporting period, the scale of Xingzheng capital management fund was 6.5 billion yuan, ranking among the top 20 in the average monthly scale of private equity funds of private equity subsidiaries of securities companies.
Profit forecast and investment suggestions
Considering that the company is a high growth company in the front and middle of the industry, we fine tune the prediction that the net profit attributable to the parent company will be 6.173/7.011/7.625 billion yuan and EPS will be 0.76/0.93/1.07 yuan from China Industrial Securities Co.Ltd(601377) 2022 to 2024 respectively. The current market value corresponds to P / b of 1.15/1.05/0.97 yuan / share. Maintain the company’s “recommended” rating.
Risk tips: tight liquidity, sharp decline in stock based turnover, overall market downside risk and company operation risk.
