Core point of view
Net profit from home increased by 11% compared with the same period last year, and the annualized ROE reached a six-year high of nearly 10%. 1) in the first three quarters of the company, the operating income was 9.003 billion yuan, + 20% compared with the same period last year, and the net profit was 2.544 billion yuan, + 11% compared with the same period last year. 2) the annualized ROE9.92%, of the company in the first three quarters of 21 years is nearly 1pct higher than that of the same period last year.
At the end of 21Q3, the company's equity multiplier reached 4.11, up 0.2 from the beginning of the year. 3) excluding other business income, the percentages of brokerage, self-management, interest, investment banking and asset management net income are 43%, 22%, 18%, 14% and 3%, respectively. Among them, proprietary, investment banking accounted for the growth of 3pct, 2pct, while the proportion of net interest income declined 7pct.
Proprietary investment income also increased by 31%. The significant recovery of focus IPO helped investment bank revenue grow by 34%. 1) the company achieved self-operating income of 1.618 billion yuan in the first three quarters of 21 years, an increase of 31% over the same period last year. The scale of the company's financial assets rebounded rapidly. As of the end of 21Q3, the company's financial investment assets totaled 75.873 billion yuan, an increase of 3% over the beginning of the year. Considering the poor profit-making effect in the third quarter, the company's proprietary investment performance has improved significantly. 2) in the first three quarters of 21, the company realized investment banking business income of 1.029 billion yuan, which was + 34% compared with the same period last year. In the first three quarters, the underwriting scale of the company's stocks and bonds was 196.1 billion yuan, with a market share of 2.09%, an increase of 0.7 pct over the same period last year. Among them, the underwriting scale of IPO reached 8 billion yuan, with a market share of 2.14%, a significant improvement over the same period last year. 3) the company achieved 186 million yuan in asset management income in the first three quarters of 21 years, an increase of 11% over the same period last year at a low base.
Brokerage revenue was boosted by the market, up 16 per cent year-on-year, and the overall performance of the credit business was poor. 1) in the first three quarters of 21, the company achieved brokerage income of 3.188 billion yuan, + 16% compared with the same period last year, mainly benefiting from the "trillion" normalization of the daily average stock base turnover in the A stock market. 2) in the first three quarters, the company achieved a net interest income of 1.32 billion yuan,-19% compared with the same period last year, mainly due to a substantial increase in interest expenditure by 17%. In addition, the balance of funds raised by the company reached 34.7 billion yuan by the end of 21Q3, an increase of 11.07% over the beginning of the year. 3) in the first three quarters, the company's business and management expenses reached 4.577 billion yuan, an increase of 23% over the same period last year; the company recouped a credit impairment loss of 21 million yuan, a significant improvement over 149 million yuan in the same period last year.
Financial Forecast and Investment suggestion
Maintain the company's 21-23 BVPS forecast value of 5.26, 5.75, 6.27, according to the comparable company valuation, maintain the 21PB target valuation of 2.40x, maintain the target price of 12.64 yuan, and maintain the overweight rating.
Risk hint
The impact of the policy on the industry is greater than expected; the dual impact of market fluctuations on the performance and valuation of the industry
