Core ideas
Net profit from the return mother increased 23% year over year, and ROE hit a new high 15 years later. 1) In 2021H, the company achieved operating income of 5.761 billion yuan, +20% year on year, and realized net profit of 1.71 billion yuan, +23% year on year. 2) The company achieved an annualized ROE of 9.98% for 21H, which is nearly 2.3 pct higher than the previous year. The equity multiplier at the end of 21H reached 3.87, +0.35 year over year. 3) Looking at the business structure, brokerage, self-employment, interest, investment banking, and asset management net revenue (excluding other businesses) accounted for 38%, 24%, 19%, 15%, and 4%, of which investment banking business revenue increased by 3 percentage points.
Stock and bond underwriting picked up sharply, investment bank revenue increased 47%, and a sharp increase in fund allocations helped self-employed income soar by 55%.
1) 21H achieved annual investment banking business revenue of 702 million yuan, an increase of 47% over the previous year. The underwriting scale of 21H's shares and bonds reached 122.4 billion yuan, an increase of 69% over the previous year, and the market share increased from 1.44% to 2.09%. Among them, the IPO lead underwriting scale reached 4.7 billion yuan, accounting for 2.19% of the market. 2) 21H financial investment assets reached 68.1 billion yuan, -3% from the beginning of the year. Of these, fund assets increased 67% from the beginning of the year to 565.3 billion yuan, accounting for 5% to 8%. The fund allocation increased dramatically to help the company achieve its own income of 1,167 billion yuan in 20218, +52% over the same period.
The share of the stock base and the two loans has both declined, and the net income performance of brokerage and interest falls short of the industry average. 1) The company's 21H achieved brokerage revenue of 1,815 billion yuan, +13% year-on-year. The overall growth rate fell short of the industry average, mainly due to the decline in the market share of the company's stock base turnover from 2.86% to 2.61% and the commission rate from 2.7 parts per 10,000 to 2.5 parts per 10,000. 2) The balance of the two loans at the end of 21H reached 33.6 billion yuan from +5% at the beginning of the year (market share fell from 1.97% to 1.88%), but due to interest expenses +17%, the company achieved net interest income of 913 million yuan, -13% year-on-year. 3) By the end of 21H, the company's asset management scale reached 154.3 billion yuan, an increase of 13% over the beginning of the year. Of these, the size of public funds increased 44% from the beginning of the year to 15.4 billion yuan, accounting for 10%.
21H achieved annual asset management revenue of 186 million yuan, +11% over the same period.
Financial forecasting and investment advice
Maintain the company's 21-23 BVPS forecast value of 5.26/5.75/6.27, give 21PB a target valuation of 2.40x according to comparable company valuations, maintain the target price of 12.64 yuan, and maintain the holdings growth rating.
Risk Alerts
The impact of policy introduction on the industry exceeded expectations; market fluctuations had a double impact on industry performance and valuation.
