\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Data overview
22q1 China stock market news achieved a total operating revenue of 3.2 billion yuan, a year-on-year increase of 10.6%; The net profit attributable to the parent company was 2.17 billion yuan, a year-on-year increase of 13.6%; The weighted average return on net assets was 4.33% (not annualized), down 1.27pct year-on-year, and the performance was in line with expectations. In terms of total operating revenue by business line, fund consignment (operating revenue) accounted for about 39%, a year-on-year decrease of 11%; Brokerage business accounted for about 42%, with a year-on-year increase of 29%; Two financial services accounted for about 19%, with a year-on-year increase of 37%.
Fund consignment business reflects resilience against the market
22q1 Dongcai realized an operating revenue (mainly fund sales revenue) of 1.24 billion yuan, a year-on-year decrease of 11%. 22q1 capital market performance was weak and new development funds were cold. The number and share of new development funds decreased by 33% and 77% respectively year-on-year. However, the decline of agency sales revenue of Dongcai was much lower than that of new development funds. It was judged that about 60% and 70% of the agency sales fund revenue came from tail servants, reflecting the resilience of agency sales business of Dongcai.
By the end of 21q4, the holding scale of Tiantian fund stock + hybrid / non commodity fund was 537.1/673.9 billion yuan, with a market share of 6.3% / 4.2%, up 0.2pct/0.2pct respectively month on month. The ranking of Tiantian fund stock + hybrid fund holding scale also surpassed ICBC and advanced to the third place. Through the flow advantages accumulated by the wealth management ecosystem, Dongcai continues to consolidate the company’s consignment capacity and continues to be optimistic about the development of consignment business for a long time.
Brokerage and financing business is still on the rise
Brokerage business: 22q1 Dongcai realized a net income of handling fees and commissions (mainly the net income of brokerage fees and commissions) of 1.35 billion yuan, a year-on-year increase of 29%. The average transaction growth rate of Dongcai brokerage business continued to exceed RMB 1.7 trillion in Q1, accounting for an increase of 1.7% in the whole stock market.
Liangrong business: the net interest income of 22q1 Dongcai increased by 37% year-on-year to 610 million yuan, mainly due to the growth of Liangrong interest income. At the end of 22q1, the balance of Dongcai’s financing funds was 39.7 billion yuan, and the market share increased by 0.39 PCT to 2.37% year-on-year. With the effective utilization of the funds raised by convertible bonds, the market share of the two financing will continue to be in the rising channel.
Increase R & D investment and consolidate platform advantages
22q1 Dongcai’s R & D expenses increased by 94% year-on-year to 230 million yuan, accounting for 3.1pct to 7.2% of the total revenue year-on-year. The company continues to strengthen R & D technology investment, optimize information interaction platform and data management platform, improve the business ability of science and technology empowerment, and consolidate the “moat” of Internet financial platform.
Profit forecast and valuation
The performance of Dongcai 22q1 shows resilience in the adverse market, the brokerage and two financing businesses are still in the rising channel, and the platform traffic advantage continues to be realized. It is estimated that the year-on-year growth rate of net profit attributable to the parent company from 2022 to 2024 is 13% / 23% / 22% respectively, the corresponding EPS is 0.88/1.07/1.31 yuan per share, and the current price corresponds to pe23.00 yuan 80 / 19.42/15.96x. Give 40 times PE in 2022, corresponding to the target price of 35.00 yuan, and maintain the “buy” rating.
Risk tips
The macro-economy has declined significantly; The scene of capital market is less generous than expected; Competition in the fund consignment industry has intensified.
