\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Event: the company disclosed the first quarterly report of 2022, realizing a total operating revenue of 3.196 billion yuan, yoy + 10.61%; The net profit attributable to the parent company was 2.171 billion yuan, yoy + 13.63%, and the performance growth rate was in line with expectations.
Fund sales revenue fell by 11% year-on-year, but better than the overall situation of the industry.
22q1 China stock market news's operating income (mainly the income of daily fund) was 1.24 billion yuan, yoy-11% and - 8.4% month on month. We judged that the decline of the company's operating income was mainly due to the year-on-year decline in the number (yoy-33%) and share (yoy-76%) of newly issued funds and the change in the scale structure of stock funds. Investors turned to apply for relatively stable bond funds or monetary funds, resulting in the decline of application and redemption income and follow-up Commission.
The market share of brokerage and financial services continued to increase, and the scale of self operated investment increased significantly.
Brokerage business: 22q1 company achieved a net income of 1.35 billion yuan (mainly brokerage business), yoy + 28.9%. The stock turnover of Shanghai and Shenzhen stock markets in the first quarter increased slightly by 6.7% year-on-year, while the growth rate of the company's brokerage business income is much higher than the market turnover. It is expected that the rise of the company's market share will accelerate.
Margin trading: 22q1 company realized a net interest income of 610 million yuan, yoy + 37%, which is expected to be mainly due to the increase of interest income from margin trading. At the end of the period, the company's financing balance was 39.7 billion yuan, with an estimated market share of 2.37%, a slight increase over the end of the 21st century.
Proprietary business: at the end of the period, the trading financial assets of the company increased by 60% to 53.6 billion yuan compared with the end of the 21st century. It is expected that the company will increase the scale of bond investment; The investment income was 192 million yuan, a year-on-year increase of + 12.8%.
Investment suggestion: Based on the change of market environment and the fact that the fund sales are not as expected, we reduced the net profit attributable to the parent company of China stock market news from 22 to 24 years to 9.673122.76/15.389 billion yuan, yoy + 13.1% / + 26.9% / + 25.4%; The current share price corresponds to 28 times of PE in 2022, which is below the historical center. The company is the core target of wealth management track, with obvious competitive advantage and better growth potential than its peers. It is expected to usher in valuation repair and maintain the "buy" rating.
Risk tip: the prosperity of the securities market fluctuates, the competition in the fund consignment industry intensifies, and the policy risk.
