Overview of the mid-2022 report: northeast Securities achieved operating income of 2.403 billion yuan in the first half of 2022,-17.90% of the same period last year, and net profit of 207 million yuan,-70.61% of the same period last year. Basic earnings per share were 0.09 yuan,-70.005% compared with the same period last year; weighted average return on equity was 1.14%,-3.00 percentage points compared with the same period last year. There will be no distribution or increase in the first half of 2022. The growth rate of operating performance of Northeast Securities in the first half of 2022 is lower than the industry average.

Comments: 1. 2022H increased the proportion of net income from brokerage, asset management, interest and other businesses, while the proportion of investment banking and investment income (including fair value changes) decreased. two。 The net income of brokerage fees was-1.92% compared with the same period last year, which remained relatively stable. 3. Stocks and bonds have not achieved the landing of the main underwriting project, investment banking business has yet to be issued this year, and the net income of handling fees is-62.94% compared with the same period last year. 4. The market influence of asset management business has been significantly enhanced, and the net income of handling fees is + 100.00% compared with the same period last year. 5. Equity self-management drag, solid income self-management to obtain better investment income, investment income (including fair value changes)-78.32% compared with the same period last year. 6. The scale of the two financing declined slightly, continued to reduce the scale of stock pledge, and the net interest income was + 173.21% compared with the same period last year.

Investment advice: due to the influence of equity self-management business, the company suffered a loss in the first quarter that it had not seen for many years; in the second quarter, the company equity self-management effectively grasped the structural opportunity of the market rebound, and the consolidated statement achieved a net profit of 466 million yuan in the second quarter, showing a significant improvement compared with the previous quarter, and the decline in the company's annual performance is expected to further converge. In addition, the current valuation level of the company has a certain comparative advantage among small and medium-sized securities firms. Taking into account the changes in various factors of the market, the company's annual profit forecast is lowered. It is estimated that the EPS of the company in 2022 and 2023 is 0.38,0.57 yuan respectively, and the BVPS is 7.95,8.33 yuan respectively, which is calculated according to the closing price of 7.40yuan on August 26th, corresponding to 0.93 times and 0.89 times respectively, maintaining the investment rating of "overweight".

Risk tips: 1. The weakening of equity and fixed income market environment led to the decline of the company's performance; 2. Market volatility risk; 3. The progress and intensity of comprehensively deepening the reform of the capital market is not as good as expected.