Northeast Securities Co.Ltd(000686) 2021 annual report comments: investment banking, asset management, fund management and other businesses increased significantly

\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 86 Northeast Securities Co.Ltd(000686) )

Overview of 2021 annual report: Northeast Securities Co.Ltd(000686) 2021 achieved an operating revenue of 7.478 billion yuan, a year-on-year increase of + 13.14%; The net profit attributable to the parent company was 1.624 billion yuan, a year-on-year increase of + 21.80%. The basic earnings per share was 0.69 yuan, a year-on-year increase of + 21.05%; The weighted average return on net assets was 9.37%, year-on-year + 1.09 percentage points. In 2021, it is proposed to allocate 1.00 yuan (including tax) in October Northeast Securities Co.Ltd(000686) 2021 the growth rate of business performance is basically the same as the industry average.

Comments: 1. In 2021, the proportion of net income from brokerage, investment banking, asset management, interest and other businesses increased, and the proportion of investment income (including changes in fair value) decreased. 2. The transformation of wealth management was promoted in an orderly manner, and the net income of brokerage service charges was + 15.67% year-on-year. 3. The total amount of investment banking business has dropped, two IPO projects have been launched, and the net income of commission fees of investment banking business has increased by 34.16% year-on-year. 4. the effect of structural adjustment of asset management business has initially shown, the scale of active management has achieved good growth, and the net fee income of asset management business has increased by +33.77% year-on-year. 5. The performance of equity proprietary trading was stable, the investment income of fixed income proprietary trading was bright, and the investment income (including changes in fair value) was - 4.66% year-on-year. 6. The balance of the two financial institutions hit a record high, the scale of stock pledge rebounded from a low level, and the net interest income was + 44.93% year-on-year.

Investment suggestion: the company is positioned to serve small and medium-sized innovative enterprises and is characterized by wealth management, focusing on the construction of characteristic, high-quality and ecological business system. As an earlier listed securities company, the company continues to optimize the layout of "three places and three centers" in Beijing, Shanghai and Changchun, and has a clear development trend based on the northeast and radiating the whole country. It is estimated that the company's EPS in 2022 and 2023 will be 0.66 yuan and 0.70 yuan respectively, and BVPs will be 8.14 yuan and 8.61 yuan respectively. Calculated according to the closing price of 7.72 yuan on April 19, the corresponding P / E will be 11.70 times and 11.03 times respectively, and the corresponding P / B will be 0.95 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

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