\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 109 Sinolink Securities Co.Ltd(600109) )
Investment banking has advantages, and the decline in the stock market has dragged down the income of self operated investment
The company’s operating revenue / net profit attributable to the parent company in 2021 were 7.127 billion yuan and 2.317 billion yuan respectively, with a year-on-year increase of + 17.5% / + 24.4%, and a weighted average roe of 9.9% 90%, year-on-year + 1.27pct, in line with our expectations. In 2022q1, the operating revenue / net profit attributable to the parent company was 912 / 124 million, a year-on-year increase of – 40% / – 74%, and the annualized roe2 0%, the performance was lower than our expectation, mainly due to the decline of the stock market in the first quarter of 2022, which dragged down the company’s proprietary investment income. Considering the adverse impact of equity market fluctuations on the business of securities companies in 2022, we lowered the net profit in 2022 / 2023 to 1.9/2 billion (2.6/3 billion before the adjustment), and added a net profit forecast of 3 billion in 2024, with a year-on-year increase of – 18% / + 36% / + 18% respectively. The company plans to raise an additional 6 billion yuan, which has been approved by the CSRC on March 18. The investment banking business of the company has sufficient projects and manpower reserves, benefiting from the comprehensive registration system. The market share of brokerage and two financial services increased in 2021, and the current share price corresponds to pb0.5% in 2022 9 times, maintaining the “buy” rating.
Projects and manpower support the high-quality development of the company’s investment banking business, and the market share of brokerage business has increased
(1) in 2021 / 2022q1, the company’s investment banking business realized a net income of RMB 1.81/350 billion, with a year-on-year increase of + 8.6% / + 0.3% respectively. In 2021, the company’s IPO underwriting revenue was 980 million yuan, a year-on-year increase of + 4% (year-on-year increase of + 310% in 2020). The impact of high base led to a slowdown in growth. The company has strong professional ability in investment banking business and relatively sufficient project and manpower reserves. As of April 29, 2022, the company has 28 total IPO reserves (excluding counseling and filing), ranking ninth in the industry and 229 sponsor representatives, ranking ninth among all sponsors. (2) In 2021 / 2022q1, the company’s brokerage business realized a net income of 1.96/400 billion yuan, a year-on-year increase of + 18.6% / – 11.4% respectively. In 2021, the turnover of the company’s agent stock base was 660 million, accounting for 1.20% of the market, with a year-on-year increase of + 0.03pct. The year-on-year decline in the brokerage business in 2022q1 is expected to be mainly affected by the cold of new fund issuance since the beginning of the year. The company’s revenue from selling financial products accounted for 17% of the brokerage business in 2021, accounting for a relatively high proportion.
The share of the two financial markets increased, and the sharp decline of the stock market affected the income of self operated investment
(1) in 2021 / 2022q1, the company realized net interest income of RMB 1.18/320 billion respectively, with a year-on-year increase of + 25% / + 17% respectively. By the end of 2022q1, the company had financed 19.34 billion yuan, a year-on-year increase of + 23%. The market share of the two financial services has increased. The market share of the company’s two financial services at the end of 2021 / 2022q1 is 1.22% / 1.22% respectively (1.00% at the beginning of 2021). (2) In 2021, the company’s return on investment in financial assets was 1.81 billion yuan, a year-on-year increase of + 30%, and the return on proprietary investment was 7.43%. In 2022q1, the company lost 260 million yuan in financial asset investment income, which was mainly affected by the stock market. In 2022q1, CSI 300 fell 14.5% (down 3.1% in the same period), and CSI comprehensive bonds rose 0.76% (up 0.95% in the same period).
Risk warning: stock market fluctuation causes uncertainty of brokerage profit; The epidemic affected the development of investment banking business less than expected.
