\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 958 Orient Securities Company Limited(600958) )
Overview of 2021 annual report: Orient Securities Company Limited(600958) 2021 achieved an operating revenue of 24.370 billion yuan, a year-on-year increase of + 5.34%; The net profit attributable to the parent company was 5.371 billion yuan, a year-on-year increase of + 97.26%. The basic earnings per share was 0.73 yuan, a year-on-year increase of + 92.11%; The weighted average return on net assets was 9.02%, a year-on-year increase of + 4.17 percentage points. As the company’s share allotment is in the process of promotion, there will be no distribution or conversion to growth in 2021 Orient Securities Company Limited(600958) 2021 business performance growth is better than the industry average.
Comments: 1. In 2021, the proportion of net income from brokerage, investment banking, asset management and interest of the company increased, and the proportion of net income from investment income (including changes in fair value) and other businesses decreased. 2. Retail and institutional customers continued to grow, and consignment sales consolidated their equity advantages. The net income of brokerage service charges was + 38.00% year-on-year. 3. The total volume of investment banking business continued to grow, and the net fee income was + 7.77% year-on-year. 4. Asset management business continued to lead, with net fee income + 46.94% year-on-year. 5. The income from proprietary business decreased slightly year-on-year, and the investment income (including changes in fair value) decreased by – 25.72% year-on-year. 6. The loss of credit impairment decreased significantly, and the net interest income was + 87.93% year-on-year.
Investment suggestion: after years of deep cultivation, the company has established a brand effect in the fields of securities investment, fixed income, asset management, fund management and so on, with significant differentiated competitive advantages. The proposed allotment of 1.671 billion new shares has been approved by the CSRC. Investing in investment banking, wealth management, self operation and other businesses will further enhance the company’s capital strength and improve the company’s comprehensive competitiveness. It is estimated that the company’s EPS in 2022 and 2023 will be 0.59 yuan and 0.63 yuan respectively, and BVPs will be 8.55 yuan and 8.86 yuan respectively. Calculated according to the closing price of 10.27 yuan on April 11, the corresponding P / E will be 17.41 times and 16.30 times respectively, and the corresponding P / B will be 1.20 times and 1.16 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
