\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Core view
Citic Securities Company Limited(600030) disclose the first quarter report of 2022. In the first quarter of 2022, the company achieved an operating revenue of 15.216 billion yuan, a year-on-year decrease of 7.2%, and a net profit attributable to the parent company of 5.229 billion yuan, a year-on-year increase of 1.24%. In the first quarter, the weighted average return on net assets of the company was 2.26%, a year-on-year decrease of 0.55 percentage points. The basic earnings per share was 0.36 yuan, a year-on-year decrease of 10%.
The investment banking business maintained a leading position in the industry, with a year-on-year increase of 14.75% in revenue in the first quarter. In the first quarter of 2022, the company achieved an investment banking revenue of 1.828 billion yuan, a year-on-year increase of 14.75%. In the first quarter, the company, as the lead underwriter, underwritten 439282 billion yuan, including 15.917 billion yuan of IPO underwriting, with a market share of 12%. In the first quarter, the company underwritten 15 IPO projects, with a market share of 15%, ranking first in the industry.
Brokerage business decreased by 9.54% year-on-year, and asset management business decreased by 0.43% year-on-year. In the first quarter of 2022, the company achieved a brokerage revenue of 3.186 billion yuan, a year-on-year decrease of 9.54%; The revenue from asset management business was 2.776 billion yuan, a year-on-year decrease of 0.43%. The company’s brokerage business is actively transforming to wealth management business, and has initially formed a comprehensive wealth management service ecosystem for ultra-high net worth customers. At present, it has more than 50 million asset entrepreneur office customers and 3000 customers. By the end of 2021, the company had more than 12 million customers, with a total asset scale of 11 trillion yuan, 35000 high net worth customers with assets of more than 6 million yuan and an asset scale of 1.5 trillion yuan; The holding scale of public and private funds exceeds 380 billion yuan.
Investment business decreased by 13.5% year-on-year, and credit business income decreased by 5.81% year-on-year. In the first quarter of 2022, the Shanghai stock index fell by 10.64% and the gem index fell by 18.25%. The company realized an investment business income of 3.351 billion yuan, a year-on-year decrease of 13.5%, mainly due to the changes in the fair value of financial instruments affected by market fluctuations. In the first quarter, the company realized a credit business revenue of 1.006 billion yuan, a year-on-year decrease of 5.81%.
Risk warning: the spread of the epidemic is seriously beyond expectations; The market decline brings uncertainty to the performance and valuation repair of securities business; Stricter financial supervision; Intensified market competition; Tight liquidity leads to rising financing costs; The promotion of innovation is less than expected.
Investment suggestion: we predict that the net profit of the company from 2022 to 2024 will be 26.9 billion yuan, 30.8 billion yuan and 34.7 billion yuan respectively, with a year-on-year increase of 16.5% / 14.4% / 12.9%. The PE corresponding to the current stock price is 10.3/9.0/8.0x and Pb is 1.1/0.9/0.8x. With the continuous reform of the capital market, the industry will accelerate the formation of a differentiated development pattern. Leading securities companies have advantages in strategic layout, capital strength, customer resources and risk pricing ability. The company’s comprehensive strength continues to lead the industry, and we maintain a “buy” rating for the company.
