\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 688 Huatai Securities Co.Ltd(601688) )
Event overview
The company released its annual report for 2021. During the reporting period, the company achieved an operating revenue of 37.91 billion yuan, a year-on-year increase of + 21%, and a net profit attributable to the parent company of 13.35 billion yuan, a year-on-year increase of + 23%; The weighted average roe was 9.84%, with a year-on-year increase of 1.23pct. Analysis and judgment:
Other, brokerage and interest businesses have the highest contribution to the increment of income
In terms of income structure, securities proprietary business accounts for the highest proportion, reaching 30%, followed by brokerage business accounting for 21%, investment banking income accounting for 11%, interest income accounting for 10%, and asset management business, equity investment and other business income accounting for 10%, 7% and 11% respectively. In terms of the contribution of incremental income, other businesses contributed the most, accounting for 44%, brokerage and interest business contributed 22% and 18% respectively, securities proprietary business contributed 17%, asset management and investment banking contributed 12% and 11% respectively, and investment in associates and joint ventures decreased significantly, contributing – 24%.
The self operated securities have been comprehensively transformed into transaction oriented, and the investment income of associated enterprises has decreased significantly
At the end of the period, the scale of securities investment was 398 billion yuan, a year-on-year increase of + 17%, and the annualized yield of securities investment was 3.14%, a year-on-year decrease of 0.12pct. The income from securities investment business was 11.27 billion yuan, a year-on-year increase of + 11%. The company firmly promotes the comprehensive transformation of its business model to transaction oriented, adheres to de directionalization, and its business is stable. During the reporting period, the company’s equity investment business income was 2.63 billion yuan, a year-on-year increase of – 37%. It is expected to mainly come from the decrease of investment income of associated enterprises Huatai Zijin (Jiangsu) equity investment fund and Nanjing Huatai Ruilian M & A fund No. 1. The company holds 41.16% and 49% equity of Nanfang fund and Huatai Bairui fund respectively, and the performance of the two public funds has increased significantly.
The market share of agency trading ranked first in the industry, and the net income of brokerage business and interest increased by 22% and 44% respectively
The company continues to build “Zhangle fortune” platform and “chat Ta” platform, continuously enhance the ability of enabling customers and investment consultants, and improve customer stickiness and platform activity. During the reporting period, the stock based trading market share of the company was 7.65%, ranking first in the industry. According to the data of the fund industry association, the stock and mixed public funds of 21q4 company are 85 billion yuan and the non money market funds are 93.2 billion yuan, ranking second in the industry. According to the company’s internal statistics, the authorized assets of fund investment consulting business are 19.511 billion yuan and 722100 customers are involved. The balance of share pledge business is 6 billion yuan, with a market share of 2.64%, which has increased year-on-year, but it is still at a low level; The balance of margin trading reached 137.7 billion yuan, a year-on-year increase of + 11%; During the reporting period, the net interest income was 3.75 billion yuan, a year-on-year increase of + 44%.
The investment banking business grew steadily, and the active proportion of asset management business increased
Investment banking revenue was 4.34 billion yuan, a year-on-year increase of + 19%. Among them, the IPO Financing scale was 37.82 billion yuan, with a market share of 6.27%, up 1.19 PCT year-on-year; The amount of refinancing and core bond financing was 60.97 billion yuan and 366.5 billion yuan respectively, with market shares of 8.57% and 4.98% respectively, a year-on-year decrease of 2.31 PCT and an increase of 0.94 PCT respectively. At the end of the reporting period, the asset management business scale of securities companies was 518.6 billion yuan, a year-on-year increase of – 12%; The net income from asset management business was 3.77 billion yuan, a year-on-year increase of + 27%. Focus on the scale of securities management and further improve the quality of total assets management. During the reporting period, the collective asset management business completed the transformation of public funds issued every day for key products; The single asset management business accelerated the exploration of net worth outsourcing business, and the special asset management business launched multi single carbon neutralization ABS Project.
Investment advice
We recognize the company’s business idea of “gathering traffic with content, precipitating traffic with private domain and amplifying traffic with operation”. During the reporting period, the company launched a new “content operation mode with short video and live broadcast as the carrier”. We believe that this “content operation” idea may be effective in the field of wealth management, and the follow-up effect is worthy of attention. Considering the trading business in the 21st century, we raised the forecast of the company’s revenue of 40.4 billion yuan / 43.579 billion yuan from 2022 to 2023 to 42.885/45.864 billion yuan, increased the forecast of 49.404 billion yuan in 2024 and increased eps1.5 billion yuan from 22 to 23 years The forecast of 62 / 1.75 yuan is increased to 1.69/1.81 yuan, and the 24-year EPS forecast is increased by 1.95 yuan, corresponding to the closing price of 15.03 yuan / share on April 1, 2021. Pb is 0.91/0.90/0.89 times respectively, maintaining the “buy” rating of the company.
Risk tips
Shrinking market transactions; Stock market fluctuation and stock pledge business risk.