\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Event: the company disclosed that in the first quarterly report of 2022, it achieved a revenue of 3.196 billion yuan, an increase of 10.61% year-on-year; The net profit attributable to the parent company was 2.171 billion yuan, a year-on-year increase of 13.63%.
In the first quarter, the stock based turnover increased slightly and the investment scale increased. In the first quarter of the year, the daily average stock base turnover of the market was 1.17 trillion, an increase of 16% over the first quarter of the previous year. We expect that the growth rate of the company’s securities brokerage business income is higher than the average growth rate of the market, mainly due to the rapid expansion of China stock market news securities branches (186 business departments have been set up at the end of 21) and the low commission rate of the Internet platform. In the first quarter, the net interest income was 600 million yuan, with a year-on-year increase of 37%, mainly due to the improvement of the market share of the two financial services. In addition, China stock market news securities has obtained the qualification of pilot exhibition of public fund investment consulting business, and the investment consulting business can make rapid development by taking advantage of the company’s existing platform. At the end of the first quarter, the company’s investable assets (resale + trading financial assets) were 58.66 billion yuan, a significant increase compared with the end of the 21st century. We expect the increase of the company’s average daily investment to improve the level of investment income.
In the first quarter, the fund issuance decreased, and the stock customers contributed to the main performance growth. 302 funds were newly established in the first quarter of 2012, with 240359 billion shares issued, corresponding to 449 funds newly established in the first quarter of 2012, with 1045.1 billion shares issued. While the issuance of the fund declined, the company’s performance was able to achieve positive growth, mainly due to the contribution of stock customers and the tail Commission share of the holding fund. In the past 21 years, the number of daily active users of Tiantian fund platform was 3.147 million, an increase of 33% over the past 20 years. The number of users of the company still has great room for growth. According to the disclosure of China Securities Investment Fund Industry Association, by the end of 2021, the holding scale of Tiantian fund stock + mixed public fund was 537.1 billion yuan, an increase of 11% month on month; The holding scale of non money market public funds was 673.9 billion yuan, an increase of 16.5% month on month, and the holding scale of funds continued to increase. Looking forward to the second quarter, we believe that with the steady growth of the Commission distribution business of stock funds, the company, as the leader of Internet wealth management, is expected to benefit in the long term. But at the same time, the decline in fund sales has caused certain growth pressure on the company’s new customers and new businesses.
Maintain the “buy” rating. The recent stock price adjustment of the company is mainly affected by the adjustment of gem and the decline of fund sales in the market. We believe that the market space of financial institutions’ wealth management business is broad. China Stock Market News is the characteristic of Internet plus brokerages. Brand advantage, customer advantage and management advantage will help to increase the market share of the company. The company’s “public fund + fund sell agent + agent buys and sells securities” forms a closed loop business, which is a significant benefit for the era of wealth management. The company’s net profit for the previous year is expected to increase by 12.49 billion yuan, and the company’s net profit for the previous year is expected to maintain an increase of – 9.8 billion yuan, with the company’s net profit of 12.49 billion yuan and 12.9 billion yuan respectively.
Risk tip: the secondary market fell sharply, and the fund sales fell sharply.
