\u3000\u3 Guangdong Shaoneng Group Co.Ltd(000601) 555 Soochow Securities Co.Ltd(601555) )
Overview of 2021 annual report: Soochow Securities Co.Ltd(601555) 2021 achieved an operating revenue of 9.245 billion yuan, a year-on-year increase of + 25.68%; The net profit attributable to the parent company was 2.392 billion yuan, a year-on-year increase of + 40.10%. The basic earnings per share was 0.59 yuan, a year-on-year increase of + 34.09%; The weighted average return on net assets was 8.42%, year-on-year + 1.81 percentage points. In 2021, it is proposed to allocate 1.68 yuan (including tax) in October Soochow Securities Co.Ltd(601555) 2021 business performance growth is better than the industry average.
Comments: 1. In 2021, the proportion of net income from brokerage and other businesses increased, while the proportion of net income from investment banking, asset management, interest and investment income (including changes in fair value) decreased. 2. The transformation of wealth management is on track, the number of customers is rising steadily, and the net income of brokerage service charges is + 38.43% year-on-year. 3. The scale of equity financing fell slightly, the location advantage of debt financing was obvious, and the net income of investment banking commission was – 10.80% year-on-year. 4. The scale of active management continued to expand, accelerated the resolution of bond position risk, and the net fee income of asset management business was + 0.72% year-on-year. 5. The investment management ability of proprietary business was improved, and the investment income (including changes in fair value) was + 19.44% year-on-year. 6. The scale of the two financial institutions hit a record high, continued to significantly reduce the scale of stock pledge, and the net interest income was + 21.98% year-on-year.
Investment suggestion: the company takes root in Suzhou, deeply cultivates the Yangtze River Delta, actively integrates into the national strategy of integrated development of the Yangtze River Delta, and has significant location advantages, characteristic and differentiated competitive advantages among small and medium-sized securities companies. By the end of 2021, the company has completed the allotment and net fund-raising of about 8 billion yuan, the capital strength has been further enhanced, and the comprehensive business strength is expected to be further improved. It is estimated that the company’s EPS in 2021 and 2022 will be 0.46 yuan and 0.50 yuan respectively, and BVPs will be 7.62 yuan and 7.82 yuan respectively. Based on the closing price of 7.44 yuan on April 15, the corresponding P / E will be 16.17 times and 14.88 times respectively, and the corresponding P / b will be 0.98 times and 0.95 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
