\u3000\u3000 China Stock Market News ( East Money Information Co.Ltd(300059) )
China stock market news 22q1 achieved a total operating revenue of RMB 3.196 billion, a year-on-year increase of 10.6%, a month on month decrease of 7.6%, and a net profit attributable to the parent company of RMB 2.171 billion, a year-on-year increase of 13.6% and a month on month decrease of 6.4%. 22q1 net profit margin attributable to parent company was 67.9%, with a year-on-year increase of 1.8pct. Due to the fluctuation of 22q1 market, the growth rate of the company’s performance slowed down, but the profit margin maintained a year-on-year increase, which was in line with expectations as a whole.
In terms of brokerage business, the net income from handling fees and commissions of Dongcai in the single quarter of 22q1 was 1.35 billion yuan, a year-on-year increase of 29% and a month on month decrease of 9%. The total turnover of stocks in the two cities in 22q1 increased by 7% year-on-year, and the average daily turnover was 1.01 trillion. The year-on-year growth rate of Dongcai 22q1 brokerage business income is significantly higher than the market growth rate, which can be judged that the market share of the company’s 22q1 brokerage business has increased significantly year-on-year.
In terms of two financial services, the net interest income of Dongcai in the single quarter of 22q1 was 606 million yuan, a year-on-year increase of 37% and a month on month decrease of 2%. By the end of March 22, the balance of two financial institutions in Shanghai and Shenzhen was 1.67 trillion yuan, an increase of 1% year-on-year at the end of March 21 and a decrease of 3% month on month compared with the end of December 21. According to the balance of two financial markets at the end of March and the amount of funds raised by Dongcai at the end of March, the market share of two financial markets by Dongcai as of the end of March 22 was 2.37%, with a year-on-year increase of 0.39pct and a month on month increase of 0.015pct. The company actively promotes the continuous replenishment of funds in the form of convertible bonds and short-term financing. We are still optimistic about the continuous improvement of the market share of the company’s two financial markets.
In terms of fund consignment business, the company’s 22q1 operating revenue (including financial e-commerce service business, financial data service business, Internet advertising service business and other business revenue) was 1.24 billion yuan, a year-on-year decrease of 11% and a month on month decrease of 8%. According to wind data, as of the end of March 22, the management scale of market non monetary funds was 14.98 trillion yuan, a year-on-year increase of 14.5% and a month on month decrease of 7.2%. From the perspective of new development funds, there are 277 new development funds of equity + hybrid funds in 22q1 market, with a year-on-year decrease of 24%, and 156.3 billion new shares, with a year-on-year decrease of 83%.
With the change of market heat, the newly issued fund shares fell more year-on-year. At the same time, the scale of fund management decreased month on month in March, resulting in the decline of fund consignment income Q1. We believe that it is mainly due to the decline of application and redemption fees. However, the stock fund brings the fund income base sector to Dongcai, which may fluctuate under the short-term market shock, but in the long run, as a platform with high-quality vertical flow, Dongcai is expected to enjoy medium and long-term dividends in the development period of asset management gold.
In addition, the fair value profit and loss of 22q1 company was – 255 million yuan, compared with 4.7 million yuan in the same period last year, mainly due to the year-on-year decrease in the profit and loss of changes in the fair value of trading financial assets, which had a certain impact on the overall profit.
Investment suggestion: the asset management market is booming, and the long-term development space can be expected. Superimposing the increasing trend of Dongcai’s business market share, the effect of Internet platform and the development of new businesses such as wealth management, we can jointly promote the short-term, medium and long-term growth of Dongcai’s performance. Considering the volatility of the equity market, we lowered the company’s net profit attributable to the parent company for 22-24 years (the previous value was 106.8/133.3/16.47 billion yuan). It is estimated that the company’s net profit attributable to the parent company for 20222024 will be 10.27/124.7/14.98 billion yuan respectively, with corresponding growth rates of 20.1% / 21.4% / 20.1% and PE of 26.8x/22.1x/18.4x respectively, maintaining the “buy” rating.
Risk tip: the prosperity of the capital market fluctuates, major changes in financial regulatory policies, changes in the competitive environment, the increase of business market share does not meet expectations, and the landing of new businesses does not meet expectations.
