\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Key investment points: affected by the decline of the equity market, the brokerage business of the company has declined, and the proprietary business is under pressure, but it is better than that of the same industry. The dominant position of investment banking business is stable, and the underwriting scale and income have increased. Asset management income declined slightly, and the scale of private asset management remained in the lead. The target price is 24.72 yuan / share, maintaining the rating of “better than the market”.
[event] 60 Hefei Lifeon Pharmaceutical Co.Ltd(003020) 22 achieved an operating revenue of 15.22 billion yuan in the first quarter, a year-on-year increase of – 7.2%; The net profit attributable to the parent company was 5.23 billion yuan, a year-on-year increase of + 1.2%; Corresponding to eps0 36 yuan, roe2 26%。 The increase in net profit in the first quarter was mainly due to the reversal of credit impairment. The credit impairment loss was withdrawn by 340 million yuan in the first quarter of 2021 and 400 million yuan in the first quarter of 2022.
The year-on-year decline in brokerage business may be caused by the decrease in the income from selling financial products on a commission basis. In the first quarter of 2022, the company’s brokerage business revenue was 3.29 billion yuan, a year-on-year increase of – 9.6%. We expect that the main reason is the sharp decline in the income from selling financial products on a commission basis and the continued decline in the commission rate due to the impact of the equity market. In the first quarter of 2022, the trading volume of the whole market was active. The daily average stock based trading volume of the whole market was 1076 billion yuan, a year-on-year increase of + 7.2%, and the balance of two financial institutions was 1672.8 billion yuan, a year-on-year increase of + 1.1%, a year-on-year decrease of – 8.7%.
The dominant position of investment banking business was stable, and the income increased year-on-year. The investment banking revenue of the company in the first quarter of 2022 was 1.83 billion yuan, a year-on-year increase of + 14.7%. The underwriting scale of equity business was + 8.9% year-on-year, and the underwriting scale of bond business was + 32.7% year-on-year. The main underwriting scale of equity was 58.9 billion yuan, ranking second, including 15 IPOs with a fund-raising amount of 15.9 billion yuan and 20 refinancing companies with a fund-raising amount of 43 billion yuan. The main underwriting scale of bonds was 378.1 billion yuan, ranking first; The underwriting scale of financial bonds, local government bonds and corporate bonds reached 116.7 billion yuan, 100.4 billion yuan and 86.3 billion yuan. There are 83 IPO reserve projects, ranking second, including 29 on the main board of the two cities, 7 on the Beijing stock exchange, 22 on the science and innovation board and 25 on the gem.
The revenue of asset management business decreased slightly, and the scale of private asset management is leading in the industry. The company’s asset management business revenue in the first quarter of 2022 was 2.78 billion yuan, a year-on-year increase of – 0.4%. By the end of 2021, the total asset management scale of the company was 1625735 billion yuan, including collective asset management plan and single asset management plan, with the scale of 60.485 billion yuan and 965.25 billion yuan respectively. The market share of the company’s private asset management business under the new asset management regulations was about 15.87%, ranking first in the industry.
The net investment income declined due to market fluctuations, and the horizontal comparison performed well. The net investment income (including fair value) was 3.35 billion yuan, a year-on-year increase of – 13.5%. Over the same period, wandequan a decreased by 14% in total, and its proprietary business performed well in the horizontal comparison within the industry.
Investment suggestion: we expect the net profit per share of the company from 2022 to 2024e to be 1.86, 2.12 and 2.39 yuan respectively, and the net assets per share to be 17.65, 20.24 and 23.32 yuan respectively. We gave it 1.4xp/b in 2022 (originally 1.6x), corresponding to the target price of 24.72 yuan (down 13%), maintaining the rating of “better than the market”.
Risk tip: the trading volume continues to decline, and the volatility of the equity market intensifies, resulting in the continuous decline of investment income.
