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中国光大控股(00165.HK)2021年业绩点评公司点评:资管业务盈利占比显著提升 主业逐渐突出

China Everbright Holdings (00165.HK) 2021 Performance Review Company Review Company Review: Asset Management Business Profit Share Has Increased Significantly, and the Main Business Has Gradually Become Prominent

天風證券 ·  Mar 18, 2022 16:32

In 2021, the group's profit attributable to shareholders was HK $2.57 billion, + 14% compared with the same period last year. Revenue totaled HK $5.99 billion, + 7 per cent year-on-year.

Asset management business: AUM continues to grow, and the share of income and profits increases significantly. By the end of 2021, the group's assets under management reached HK $203.1 billion, a compound growth rate of 14% from 2019 to 2021 compared with the same period last year. Among them, the primary fund, secondary fund and parent fund AUM are HK $130.7 billion, HK $44.1 billion and HK $28.3 billion respectively, accounting for 64%, 22% and 14% respectively. We judge that with the brand effect of the company's head and the continuous strengthening of the main business, we expect the company's AUM compound growth rate to exceed 14% in the next three years.

Benefiting from the continued increase in the size of the managed fund and the project valuation repair after the epidemic, the fund management business income reached 3.88 billion Hong Kong dollars in 2021, + 111% of the same period last year. Of these, 1) fund management fee income + 15% to HK $340 million; 2) performance fee and consulting fee income + 9% to HK $130 million; 3) capital gain income from seed money provided by the group in various funds, including realized investment income (valuation at the time of project exit-valuation at the beginning of the year) HK $380 million and unrealized investment income (valuation at the end of the project-valuation at the beginning of the year) HK $2.48 billion 4) the dividend of the project obtained from the seed funds provided by the Group for investment in the primary market.

Profits in the fund management business rose sharply, + 144 per cent year-on-year to HK $2.84 billion.

Second, self-owned capital investment business: the business is stable and contributes incremental profits. By the end of 2021, the scale of the group's own capital investment business reached HK $42 billion, + 4% compared with the same period last year. Among them, 1) the size of important investment enterprises is HK $7 billion, mainly holding shares in Zhongfei Leasing, Everbright Pension and Teslian; 2) the financial investment scale is HK $15.1 billion, mainly for financial investments in equity, debt and structured products; and 3) the stone investment scale is 19.9 billion, mainly holding part of shares in Everbright Bank and Everbright Securities.

In 2021, the income from the self-owned capital investment business was HK $2.104 billion,-44% compared with the same period last year, and the profit was HK $1.77 billion, or-48% from the same period last year. Among them, 1) Stone investments (holding shares in Everbright Bank and Everbright Securities) contributed profits of HK $1.28 billion, + 8 per cent year-on-year. 2) the profit of the important investment enterprise sector was HK $830 million,-41% compared with the same period last year, mainly due to the withdrawal of projects with better investment returns in 2020. 3) Financial investment decreased from a profit of HK $810 million in 2020 to a loss of HK $340 million in 2021, mainly due to large fluctuations in the capital market in 2021, changes in the valuation of financial investment projects, and the company's provision for impairment based on the principle of prudence.

(note: the profit of holders of unallocated corporate fees, taxes and preferred perpetual capital securities is-HK $2.04 billion. )

Investment advice: 2021 performance is in line with expectations, asset management business is gradually prominent, multiple holding valuation discount is expected to be repaired, it is recommended to pay attention to the long-term allocation value. We judge that with the accelerated development of private equity fund management business in China, the brand effect of Everbright Holdings will continue to be highlighted, and the income and profit share of asset management business is expected to increase steadily under the stable investment business of its own funds.

Taking into account the light asset transformation of the group and the slowdown in the growth of its own capital investment business, we adjusted the company's profit attributable to shareholders in 2022-2024 to HK $3.34 billion, respectively (HK $4.34 billion in 2022-2023, supplementing the 2024 forecast), with a year-on-year increase of + 18%, 22%, 23%, respectively.

Risk tips: large fluctuations in the capital market; asset management scale growth is not as expected; private equity market environment deteriorated; project investment return is not as expected.

The translation is provided by third-party software.


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