\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
Main points:
The service drainage framework of “content – Community – market – Data – decision-making – trading” and the realization combination of “fund consignment – securities brokerage – two financial services – wealth management” jointly build China stock market news into a gold digger at the top of the flow.
We predict that in 2022, the revenue will be 15.063 billion yuan (YoY + 15.04%), and the net profit will be 9.686 billion yuan (YoY + 13.24%); The reasonable P / E ratio range is [38x, 45x], and the reasonable market value range is [368.1 billion yuan, 435.9 billion yuan]; The current market value is 273.1 billion yuan, with a potential increase range of [34.8%, 59.6%].
The prospect of fund consignment is broad, and the flow realization is still a good opportunity
The real estate policy suppresses the investment enthusiasm of the real estate market, and the stock market volatility is high, so it is difficult to become the first choice for residents’ allocation in the short term. On the way of “the transfer of funds from the real estate market to the stock market”, the fund management plays a bridge role with its relatively excellent risk return ratio, and the demand space for fund allocation is huge. Tiantian fund provides customers with large discounts, rich products and all-round service system. At present, it has become a head consignment agency and will continue to share industry dividends in the future. From Q1 to Q4 in 2021, the number of funds sold on a commission basis of Tiantian fund increased from 807.4 billion yuan to 1211 billion yuan, and the ranking of commission agencies in the whole market rose from fifth to third. The total fund sales of China stock market news reached 224 million yuan, a year-on-year increase of 28.51%.
The profit margin of brokerage business is high, and the two financial services are advancing by leaps and bounds
Securities brokerage business focuses on C-end users through online drainage, and the low-cost advantage brought by asset light makes it maintain a high profit margin. In addition, the company consolidated its capital through two fixed growth and three rounds of convertible bond financing, laying the foundation for the development of the two financing businesses. From 2015 to 2021, the income from securities business increased from 113 million yuan to 7.687 billion yuan, with a CAGR of 102% in six years, and the proportion of revenue increased from 4% to 59%, of which the net interest income accounted for 18% and the income from handling fees and commissions accounted for 41%. Internet is the transformation direction of many businesses in the securities industry. Dongcai’s Internet attribute makes it maintain the first mover advantage and full of stamina.
Referring to Jiaxin wealth management, wealth management business stars and seas
China stock market news is in the stage of transforming low commission securities companies into an integrated wealth management platform. It is expected to re carve the growth path of Jiaxin wealth management and realize rapid growth of wealth management business. In July 2021, the pilot fund investment consulting business of Dongcai securities was approved by the CSRC; The company has a large investment in R & D expenses and is committed to building an intelligent investment consultant to further deepen the value exploration of long tail customers.
Investment advice
Benefiting from the growth of market scale and the improvement of market share, the securities business and financial e-commerce business of China stock market news will continue to grow. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 9.686122.83/15.104 billion yuan respectively, with a year-on-year increase of 13.24% / 26.82% / 22.96% respectively, and the corresponding EPS will be 0.73/0.93/1.14 yuan respectively. For the first time, give a “buy” rating.
Risk tips
The growth of market financing and stock based trading volume was lower than expected, the growth of market share was lower than expected, and the impact of the epidemic on the market exceeded expectations.
