[event] Zhongyuan Securities released its results for the first half of 2022: the operating income in the first half of 2022 was 790 million yuan,-66.3% compared with the same period last year; the net profit was-125 million yuan, which changed from profit to loss compared with the same period last year; corresponding to EPS-0.03 yuan, ROE-0.92%. The operating income in the second quarter was 400 million yuan,-68.3% compared with the same period last year. Return to the mother net profit-144 million yuan, from profit to loss compared with the same period last year. The main reason for the substantial loss in the second quarter was that the company recorded a credit impairment loss of 160 million yuan in that quarter.
Through digital support empowerment and management-driven guidance, accelerate the upgrading of the company's intelligent wealth management. The income of Zhongyuan securities brokerage business in the first half of 2022 was 330 million yuan,-14.7% compared with the same period last year, accounting for 41.7% of the operating income. The share of the brokerage market is 0.34%, slightly lower than the same period last year. The company's revenue from consignment sales of financial products was 10.94 million yuan,-71.0% compared with the same period last year, accounting for 3.3% of brokerage income, down 6.5pct from the same period last year. Sales of financial products totaled 5.341 billion yuan,-23.5% year-on-year.
The company has a balance of 6.97 billion yuan, up from-13.1% at the beginning of the year, with a market share of 0.43%. The company's securities brokerage business focuses on customer operation, speeds up the digital transformation of business processes, simplifies business processes, strengthens product research capabilities, relies on consignment sales of financial products, and deepens consulting services. Great progress has been made in the development and services of high net worth customers and professional investors.
The size of IPO has declined significantly, and investment banking revenue has fallen sharply. The company's investment banking revenue in the first half of 2022 was 120 million yuan,-55.0% compared with the same period last year. The underwriting scale of equity business is-77% compared with the same period last year, and that of bond business is-49%.
The main underwriting scale of the company's equity is 1.3 billion yuan, ranking 43rd; among them, the IPO1 family, raising 1.3 billion yuan; the company has no refinancing projects in the first half of the year. The main underwriting scale of bonds is 2.12 billion yuan, ranking 83rd, all of which are corporate bonds.
There are 6 IPO reserve projects, ranking 28th, including 1 main board of two cities, 1 Beijing Stock Exchange and 4 gem.
The income of the asset management business has increased slightly, exploring the direction of differential competition. The income of asset management business of Zhongyuan Securities in the first half of 2022 was 19 million yuan, + 8.3% compared with the same period last year. The amount of assets under management is 3.54 billion yuan, up from-5.3% at the beginning of the year. The company's asset management business focuses on improving the ability of active management, strengthening the construction of professional level of investment and research, strengthening team building and personnel training, deeply ploughing the research and layout of various business segments, and focusing on FOF business and fixed income business to explore the direction of differentiation competition.
The company's investment income has declined due to the drag of the market situation. In the first half of 2022, the company's investment income (including fair value) was 161 million yuan,-61.8% compared with the same period last year; in the second quarter, the investment income (including fair value) was 97 million yuan,-67.7% compared with the same period last year.
We believe that the main reason is the poor performance of the equity market, with the Wande whole An index falling 9.53% in the first half of 2022.
[investment suggestion] We expect the annual net profit per share of 2022E-2024E to be 0.12 yuan per share, and the net assets per share to be 3.08.3.23 yuan per share. Taking into account the effectiveness of the company's digital transformation, investment banking business continues to expand outside the province, a number of businesses have growth potential. We give it slightly higher than the industry average valuation level, giving it 1.4-1.5x Pmax B in 2022, corresponding to a reasonable value range of 4.17-4.47 yuan, maintaining a "neutral" rating.
