\u3000\u3000 China Stock Market News (300059)
China stock market news disclosed the 21-year financial report of the securities subsidiary. The securities subsidiary is expected to achieve a total revenue of 7.300 billion yuan in 21 years, a year-on-year increase of 58.8%; The net profit was 4.825 billion yuan, a year-on-year increase of 66.9%. In the same period, the total operating expenditure of the subsidiaries of securities companies was 1.746 billion yuan, with a year-on-year increase of 45.2%. The net profit margin in 21 years was 66%, with a year-on-year increase of 3.2pct. The low marginal cost advantage of Internet securities companies continued to be reflected. In terms of business, the net income of handling fees and commissions of Dongcai securities in 21 years was 4.546 billion yuan, a year-on-year increase of 51.9%, of which the net income of handling fees and commissions in 21h2 was 2.667 billion yuan, a year-on-year increase of 53.5% and a month-on-month increase of 42.0%. The stock turnover of the two cities increased by 24.8% year-on-year in 21 years. The growth rate of brokerage business income of Dongcai securities in 21 years was significantly higher than that of the market. It is expected that the market share of Dongcai stock brokerage business will continue to increase. At the beginning of 2022, the market transactions were active, and from the beginning of the year to January 20, the single day turnover of the two markets exceeded trillion.
In terms of two financial services, the net interest income of Dongcai securities in 21 years was 1.749 billion yuan, a year-on-year increase of 38.6%, of which the net interest income in 21h2 was 983 million yuan, a year-on-year increase of 27.6% and a month-on-month increase of 28.4%. By the end of December 2021, the balance of dual financing in the market was 1.84 trillion yuan, an increase of 14% compared with the same period last year. The growth rate of business revenue of dual financing of Dongcai was also higher than that of the market. As the company’s annual statements have not been disclosed, we temporarily calculate based on the 42 billion funds raised by Dongcai securities as of the end of December. It is estimated that the market share of two financing at the end of Dongcai 21 is 2.28%, which is 0.07pct higher than that at the end of Q3 and 0.43pct higher than that at the end of 20. Dongcai completed the issuance of 15.8 billion convertible bonds in the first half of 21 years, Dongcai securities completed the issuance of corporate bonds (phase I) in December 21, and completed the issuance of 1.5 billion yuan short-term financing in the first phase of 22 years in January 22. With the continuous replenishment of capital, the market share of the company’s two financing business is expected to continue to increase. In terms of proprietary business, Dongcai securities’ proprietary business income in 21 years was 928 million yuan, a significant increase of 223.1% year-on-year. In addition to brokerage business and two financing business, diversified sectors also showed growth.
The follow-up of fund ownership brings the basic income of Dongcai fund. In the long run, Dongcai, as a platform with high-quality vertical flow, is expected to enjoy medium and long-term dividends in the development period of asset management gold. According to the data on the number of public funds held by 21q3 fund sales agencies on a commission basis disclosed by the fund industry association, the holding scale of 21q3 stock + mixed public funds of Dongcai’s Tiantian fund was 484.1 billion yuan, an increase of 9.6% month on month, ranking the fourth, the holding scale of non monetary funds was 578.3 billion yuan, an increase of 14.0% month on month, ranking the third, and the holding scale of stock + mixed funds Q3 of Dongcai had the highest month on month growth rate among the top 10 institutions.
Investment suggestion: the asset management market is booming, and the long-term development space is expected. Superimposed on the increasing trend of market share of Dongcai business, the effect of Internet platform, and the development of new business of international securities and wealth management, it will jointly promote the short-term, medium and long-term growth of Dongcai’s performance. We expect the company’s net profit attributable to the parent company in 21-23 years to reach RMB 8.31/11.51/14.88 billion, with corresponding year-on-year growth rates of 73.9% / 38.5% / 29.3% and PE of 41.5x/29.9x/23.2x 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 business does not meet expectations.
