\u3000\u3 China Vanke Co.Ltd(000002) 797 First Capital Securities Co.Ltd(002797) )
Event: the company disclosed its 2021 annual report, realizing an operating revenue of 3.3 billion yuan (YoY + 4%), a net profit attributable to the parent company of 700 million yuan (yoy-8%), and roe of 5.5% 26%（YoY-2.05pct.）， EPS0. 18 yuan (yoy-14%).
Overall: 1) under the drag of investment, the performance is lower than the industry level, and the net profit attributable to the parent company is – 8% to 700 million yuan year-on-year, roe 5.5% 26%, the net profit of the securities industry in the same period + 21%, roe7 83%； 2) The leverage ratio of the company was 2.27 times, an increase of 0.04 times, and that of the securities industry in the same period was 3.38; 3) According to the five traditional business sectors, investment and asset management have the highest contribution, accounting for 28% respectively, while the rest of brokerage, investment banking and credit business account for 15%, 9% and 6% respectively; Credit, asset management and brokerage businesses achieved positive growth, with a year-on-year increase of + 64%, + 34% and + 14% respectively, and investment and investment banking – 5% and – 32% respectively.
The asset management business developed in depth and the scale of public funds increased rapidly: 1) in the asset management field of securities companies, the company continued to improve its active management ability and shrink its channel business. By the end of 2021, the total entrusted capital of the company’s asset management business of securities companies was 58.4 billion yuan, a decrease of 13.7 billion yuan compared with 2020. 2) In the field of public funds, the scale of the company’s holding subsidiary ChuangJin Hexin Fund (holding 51%) increased rapidly. By the end of 2021, the total amount of entrusted management funds of ChuangJin Hexin was 810.7 billion yuan, a year-on-year increase of + 43%, of which the scale of special account asset management was 741.6 billion yuan, a year-on-year increase of + 40%. In 2021, ChuangJin Hexin realized a net profit of 150 million yuan, a year-on-year increase of + 60%. In addition, the company participated in Yinhua Fund (holding 26%). In 2021, Yinhua Fund realized a net profit of 920 million yuan, a year-on-year increase of + 11%.
Characteristic development of fixed income business and transformation to transaction driven: 1) in the fixed income product sales sector, the company sold 5878 fixed income products in 2021, with a year-on-year increase of + 14%, and the amount of fixed income products sold was 261.9 billion yuan, with a year-on-year increase of – 9%. 2) In the fixed income investment trading business segment, the trading volume of corporate bonds in 2021 was 3933.9 billion yuan, a year-on-year increase of + 11%, and the market making trading volume was 1244.1 billion yuan, a year-on-year increase of + 32%. In addition, the trading volume of corporate bonds has made a breakthrough and opened up the business field of “northbound”.
The brokerage business was transformed into wealth management, and the scale of consignment sales increased significantly year-on-year: 1) in the investment banking sector, in 2021, the company completed ipo2 and private placement, with a total underwriting amount of 3.1 billion yuan; We completed 27 corporate bond projects and 2 corporate bonds, with a total underwriting amount of 12 billion yuan. 2) In the brokerage business sector, the company continued to promote the transformation to wealth management. In 2021, the company added 188000 new customers, a year-on-year increase of + 28%; The average daily assets were 214.6 billion yuan, a year-on-year increase of + 18%. 3) In the credit business sector, by the end of 2021, the company’s two financing scale was 7.3 billion yuan, a year-on-year increase of + 29%, and the share of financing balance was + 12%. 4) In the financial product sales sector, the company’s financial product sales scale in 2021 was 9.3 billion yuan, a year-on-year increase of + 71%, including 4.2 billion yuan in equity, a year-on-year increase of + 32%.
Investment suggestion: buy – a investment rating. The company has distinctive features in the fixed income and asset management business sectors. We expect the net profit attributable to the parent company from 2022 to 2024 to be 1.0 billion yuan, 1.1 billion yuan and 1.3 billion yuan respectively. Give the company a target price of 6.8 yuan, corresponding to 1.8x2022epb
Risk tip: macroeconomic downturn, sharp tightening of liquidity and intensified industry competition
