\u3000\u3000 Citic Securities Company Limited(600030) (600030)
Key investment points
Event: the company disclosed the performance express. In 2021, the revenue was 76.570 billion yuan, a year-on-year increase of + 40.8%, and the net profit attributable to the parent was 22.979 billion yuan, a year-on-year increase of + 54.2%. The net profit attributable to the parent was equivalent to 121% of our previous forecast, exceeding expectations. Weighted average roe12 01%, yoy + 3.58pct. Q421’s net profit attributable to the parent company was 5.334 billion yuan, a year-on-year increase of + 137.9% and a month on month decrease of – 2.1%.
Performance attribution: according to the company’s announcement, the company’s performance increased significantly, mainly due to the gradual overcoming of the impact of the epidemic in China’s economy in 2021, the continuous improvement, and the vigorous development of the capital market, which promoted the balanced development and steady growth of the company’s investment banking, asset management and other businesses. [investment banking] in 2021, the number of equity underwriters of the company was 2043, with an underwriting amount of 1.09 trillion yuan, ranking first in the industry; Among them, there are 69 IPOs with an underwriting amount of 109.8 billion yuan, also ranking first in the industry. In terms of bond underwriting, 49 corporate bonds were underwritten with an underwriting amount of 29.7 billion yuan, with a market share of 6.75%, ranking third in the industry (second only to Haitong 10.77% and China Construction Investment 9.40%), 663 corporate bonds were underwritten with an underwriting amount of 336.2 billion yuan, with a market share of 9.74%, ranking second in the industry (second only to China Construction Investment 11.27%). [asset management business] as of January 11, 2022, the company had a collective asset management share of 2030 billion and a net asset value of 214.467 billion yuan, both ranking first in the industry; According to the data reported by listed securities companies, the entrusted asset management scale of H121 company is 1.39 trillion yuan and the total asset management revenue is 1.782 billion yuan, both ranking first in the industry.
Large and comprehensive leading securities companies, balanced business development: the company’s brokerage, investment banking and other businesses have traditional advantages, and the development of OTC business, wealth management and other innovative businesses is also leading the industry. As a leading securities firm, the company has strong comprehensive strength, and the development of OTC business, large investment banking business and wealth management business is expected to open up room for rising valuation.
Investment suggestion: the company’s proposed allotment of 1.939 billion shares was approved on November 26, 2021, and its capital strength will be further enhanced. According to the performance express, we raised the company’s brokerage, investment banking and asset management business income, and based on this, we raised the company’s profit forecast for 2021-2023 to RMB 22.979 billion, 28.159 billion and 33.056 billion, with an increase of 22%, 21% and 19%, maintaining the Buy-A rating.
Risk tip: the capital market scene is declining, and the business development is less than expected
