\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
The best beneficiary of the long-term development of the capital market is the scarce securities companies + Internet platform companies
Financial information started to establish an ecosystem, and fund consignment + brokerage transactions realized flow realization. China stock market news was founded in 2005 to establish a professional investment and financial ecology and flow foundation in the PC era through, and stock bars. Subsequently, the company won the fund sales and securities licenses and realized the perfect realization of ecological flow.
The beneficiary of the long-term development of the capital market, the combination advantage of securities companies + Internet is prominent. At present, the proportion of financial assets of Chinese residents is only 20%, and the proportion of stock and fund related investment is less than 10%. The space of residents' asset allocation capital market is broad, which brings the upward movement of activity center and the general trend of investment institutionalization. As a leading brokerage + Internet platform, the company has nearly 65 million PC users, 17 million + mobile users and 5 million + daily fund users. Fund sales, securities trading and two financial services will deeply benefit from the arrival of the era of big asset management.
Fund consignment: in a comprehensive comparison, Tiantian fund has grown into a third-party giant with ecological flow and professionalism
The number of Tiantian fund stocks + hybrid public funds reached 537.1 billion yuan in 21q4, surpassing ICBC to the third place. At present, the third-party fund consignment industry presents a double giant pattern. The stock + hybrid fund holdings of ant fund and Tiantian fund are 727.8 billion and 537.1 billion respectively, ranking second and third in all channels. It has the capacity to compete with large banks on the same platform. Comprehensive comparison of fund consignment channels: 1) compared with banks and securities companies, Tiantian fund has significant leading advantages in ecological flow, APP construction and fund investment professionalism; 2) Compared with ants, there are disadvantages on the basis of traffic every day, but they are superior in professionalism, securities license and regulatory pressure. Therefore, Tiantian fund is expected to continue to enjoy the dividends of the Internet financial management blue ocean market with its unique and professional competitive advantages. More importantly, 75% of the fund consignment income comes from the fund ownership. Therefore, as a strong channel, Tiantian can rely on the flow advantage to obtain sustained growth income, resist the cyclical fluctuations of the capital market and achieve long-term stable growth.
Securities business: Internet channel blessing, welcome the double click of the upward movement of the trading volume center and the increase of market share
Internet play and strong ecology have impacted the brokerage market. The CAGR of China stock market news brokerage business income in 16-20 years is 51%, while the overall compound growth rate of the industry is only 2.5%. It is estimated that the market share of the company's agency transaction volume has increased from 1.2% to 3.7% (the first market share is 7.7%). The company continues to seize the brokerage market with its low rate and traffic advantages in the Internet Ecology. We increased fund-raising in the capital market and expanded the scale of two financing businesses. In 2021, the company financed 43.4 billion yuan, an increase of 44% year-on-year. However, compared with the company's agency stock trading volume and the scale of the two financing business, there is still more than double the space compared with the head securities companies.
Investment recommendations: the company's net profit in the 22-24 years is expected to be 102.3, 126.9 and 15 billion 400 million yuan respectively. The current market value corresponds to the 29, 23 and 19 times of 22/23/24 value. Considering the scarcity of Internet plus license, the leading position of the industry and the current valuation of the China Stock Market News, compared with its own historical valuation, we think the company is significantly undervalued. The first coverage is given "recommended" rating.
Risk warning: the turnover in the capital market is less than expected; The issuance and sales in the fund market are less than expected; The company's securities business development is not enough.
