\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Event: the company’s q122 total operating revenue was 3.196 billion yuan, a year-on-year increase of + 10.6%, a month on month increase of – 7.6%, and the net profit attributable to the parent company was 2.171 billion yuan, a year-on-year increase of + 13.6%, a month on month increase of – 6.4%, and a weighted roe of 4.5% 33%, year-on-year -1.27pct. Revenue segment: operating income (including fund sales revenue accounting for nearly 95%) was 1.24 billion yuan, with a year-on-year ratio of – 11.5% and a month on month ratio of – 8.4%; net income from handling fees and commissions was 1.35 billion yuan, with a year-on-year ratio of + 29.0% and a month on month ratio of – 9.1%; net interest income was 606 million yuan, with a year-on-year ratio of + 37.4% and a month on month ratio of – 2.1%.
Performance attribution: 1) under the market fluctuation, the fund issuance was cold, which dragged down the growth of the company’s fund consignment income. There were 246860 billion new development funds in q122, with a year-on-year ratio of – 76.4% and a month on month ratio of – 58.9%, of which 210 million were equity funds, with a year-on-year ratio of – 82.8% and a month on month ratio of – 62.0%, and 111211 billion were hybrid funds, with a year-on-year ratio of – 85.2% and a month on month ratio of – 48.2%. The decline of the company’s fund consignment income is much smaller than that of new funds in the market, reflecting good performance toughness. As of April 23, there were 176 fund companies and 7726 funds sold on a commission basis, ranking first in the industry. 2) The market transaction activity has not decreased significantly. We judge that the share of the company’s securities brokerage and two financial markets has increased year-on-year. The average daily turnover of q122a shares was 1.01 trillion yuan, with a year-on-year increase of + 6.8% and a month on month increase of – 8.2%. The average daily balance of dual financing was 1.57 trillion yuan, with a year-on-year increase of + 5.9% and a month on month increase of – 5.6%. At the end of the period, the company paid 69.363 billion yuan for securities trading, a year-on-year increase of + 24.7% and a month on month increase of + 8.5%, and financed 39.697 billion yuan, a year-on-year increase of + 20.7% and a month on month decrease of – 8.5%.
The decline in short-term performance growth does not change the long-term positive trend: the company’s main business is highly positively correlated with the bearing of the capital market scene. Under the sharp fluctuation of q122 market, the company’s performance growth has decreased, but it still maintains double-digit growth, and is expected to still lead most traditional securities companies. In the long run, the company’s logic of realizing Internet traffic with financial license remains unchanged, and we believe that the company’s performance flexibility may be stronger when the market boom improves, benefiting from the increase of the company’s securities brokerage and two financial markets.
Investment suggestion: we are still optimistic about the company’s performance flexibility and performance sustainability, and maintain the profit forecast unchanged. As of April 22, the company’s share price corresponds to 2022epe25 07x, at an absolute low in the past five years. The company’s share price has fallen 47% since December last year, focusing on the left layout opportunity and maintaining the “buy-b” rating.
Risk tip: the activity of the capital market has declined, the issuance of funds has remained depressed, and the market share has declined due to intensified competition.
