\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Core view
China stock market news disclosed the first quarter report of 2022. In the first quarter of 2022, the company realized an operating revenue of 3.196 billion yuan, a year-on-year increase of 10.61%; The net profit attributable to the parent company was 2.171 billion yuan, a year-on-year increase of 13.63%. The weighted average return on net assets in the first quarter was 4.33%, down 1.27 percentage points year-on-year. The basic earnings per share was 0.17 yuan, a year-on-year increase of 13.33%.
Fee and commission income increased by 28.94%, interest income increased by 37.41% and investment income increased by 175.75% year-on-year. In the first quarter of 2022, the average daily turnover of A-Shares was 1007365 billion yuan, a year-on-year increase of 6.77%; The balance of the two financial institutions was 1679276 billion yuan, a year-on-year increase of 1.82%. In the first quarter, the company's securities business realized a handling fee and commission income of 1.35 billion yuan, a year-on-year increase of 28.94%; The interest income was 606 million yuan, a year-on-year increase of 37.41%, mainly from margin trading and other debt investment. In the first quarter, the company realized an investment income of 446 million yuan, a year-on-year increase of 175.75%, mainly due to the growth of bond investment income. Trading financial assets increased by 59.76% year-on-year, mainly due to the increase in investment bonds.
The position of fund holding capacity is stable. By the fourth quarter of 2021, the holding scale of Tiantian fund stock + mixed public offering fund was 537.1 billion yuan, ranking third in the industry; The scale of non money market public funds is 673.9 billion yuan, also ranking third in the industry.
R & D expenses increased by 93.94% year-on-year. As a leading Internet wealth management integrated operator in China, the company still plays a platform advantage when the market is weak. In the first quarter of 2022, the total operating cost of the company was 1.013 billion yuan, a year-on-year increase of 19.46%. The R & D expenses in the first quarter were RMB 229 million, an increase of 93.94% year-on-year, mainly due to the company's increased investment in R & D.
Capital strength was further enhanced. In 2021, the company completed the issuance and listing of convertible bonds "Dongcai Zhuan 3", raising a total of 15.8 billion yuan; Overseas subsidiaries completed the issuance and listing of overseas US dollar bonds and raised US $300 million; China stock market news securities has completed the issuance of short-term financing bonds, private placement bonds, public offering bonds and other bonds to further enrich financing means and reduce financing costs; Enhance the company's capital strength and comprehensive competitiveness.
Risk warning: the risk of the network financial information service industry affected by the fluctuation of the prosperity of the securities market; Risk of safe operation of one-stop Internet service platform and network information transmission system; The risk of intensified market competition; The market decline brings uncertainty to the performance of securities business.
Investment suggestion: as the only Internet brokerage of a shares, the company has a unique competitive track, obvious advantages in cost and flow, steady growth in the scale of fund ownership and further enhancement of capital strength. Based on the company's good performance and growth space, we predict that the net profit from 2022 to 2024 will be 10.172 billion yuan, 12.758 billion yuan and 15.628 billion yuan, with a growth rate of 19% / 25% / 22%. The PE corresponding to the current stock price is 22.6/18.0/14.7x and Pb is 3.2/3.0/2.6x. We maintain a "buy" rating on the company.
