\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 688 Huatai Securities Co.Ltd(601688) )
Overview of 2021 annual report: Huatai Securities Co.Ltd(601688) 2021 achieved an operating revenue of 37.905 billion yuan, a year-on-year increase of + 20.55%; The net profit attributable to the parent company was 13.346 billion yuan, a year-on-year increase of + 23.32%. The basic earnings per share was 1.47 yuan, a year-on-year increase of + 22.50%; The weighted average return on net assets was 9.84%, year-on-year + 1.23 percentage points. In 2021, it is proposed to allocate RMB 4.50 (including tax) for 10 years Huatai Securities Co.Ltd(601688) 2021 business performance growth slightly better than the industry average.
Comments: 1. In 2021, the proportion of net income from brokerage, asset management, interest and other businesses increased, and the proportion of net income and investment income (including changes in fair value) of investment banking decreased. 2. The influence of wealth management market was further improved, and the net income of brokerage fees was + 21.97% year-on-year. 3. Stocks and bonds increased, the total amount of investment banking business increased significantly, and the net fee income increased by + 19.21% year-on-year. 4. The effect of structural adjustment of asset management business was initially shown, and the net fee income was + 26.58% year-on-year. 5. Fixed income proprietary investment income maintained steady growth, and investment income (including changes in fair value) was – 3.22% year-on-year. 6. The balance of the two financial institutions continued to reach a record high, the credit impairment was significantly reduced, and the net interest income was + 43.99% year-on-year. 7. International business revenue increased by + 60.21% year-on-year, and the proportion of revenue continued to increase.
Investment suggestion: as one of the representative head securities companies, the company deepens technological empowerment, has an open digital wealth management platform, a first-class investment banking business that systematically serves customers, and a comprehensive asset management platform with both scale advantages and innovation advantages. At the same time, it accelerates the global layout and creates a cross-border ecosystem. In addition, diversified shareholder background structure and firmly building a market-oriented system and mechanism are important driving forces for the company’s continuous transformation and transcendence. It is estimated that the company’s EPS in 2022 and 2023 will be 1.45 yuan and 1.55 yuan respectively, and BVPs will be 15.91 yuan and 16.75 yuan respectively. Calculated according to the closing price of 15.02 yuan on April 8, the corresponding P / E will be 10.36 times and 9.69 times respectively, and the corresponding P / B will be 0.94 times and 0.90 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
