Event description:
In the first three quarters of 2022, the company achieved operating income of 8.923 billion yuan,-27.48% year-on-year; net profit of 3.406 billion yuan, + 4.57% year-on-year, weighted average ROE5.82%, year-on-year-0.28pct. In the third quarter, the operating income was 3.55 billion yuan,-17.56% compared with the same period last year, and the net profit was 1.298 billion yuan, + 30.50% compared with the same period last year.
Main points of investment:
The income of capital management and self-management has increased, and the proportion of scale has increased. Excluding other business income, the company's operating income fell 6.63%. In the first three quarters, the net income of brokers, investment banks and interest declined, reaching 2.621 billion yuan, 1.026 billion yuan and 1.685 billion yuan respectively, down 21.78%, 29.51% and 11.54%, respectively. Capital management and proprietary income increased significantly, to 1.224 billion yuan and 1.031 billion yuan, respectively, up 81.17% and 100.19%.
Accelerate the layout of derivatives business. The company's proprietary business further strengthened non-directional investment, and the net investment income increased by 725 million yuan compared with the previous month. Affected by the increase in the scale of equity swaps and over-the-counter options, derivative financial assets increased by 154.68%, and derivatives margin increased by 191.42%.
Investment banking projects are rich in reserves. The company has rich reserves of IPO projects. As of October 28, 2022, there are 19 IPO projects under review, ranking 14th in the industry, including 10 on the Shanghai and Shenzhen main Board, 1 on Science and Technology Innovation Board, 6 on the gem and 2 on the North Stock Exchange. With the gradual landing of the project, there is much room for improvement in the underwriting income of investment banking business.
Public offering management focuses on mixed products of equity. The improvement of 2022Q3's asset management performance accelerated, and its income increased by 70.69% compared with the previous month. By the end of June 2022, the total size of entrusted management of optical securities management was 431.977 billion yuan, with the active category accounting for 93.7%. The company actively promoted the public offering and transformation of products. Compared with the beginning of the year, the scale of 2022Q3 public asset management increased by 80.14% to 24.94 billion yuan, and the number of public products increased by 3. Most of the product categories are high-rate equity mixed products.
Profit forecast, valuation analysis and investment suggestions: relying on the overall collaborative advantages of Everbright Group, the company increases its capital management and proprietary income, and is optimistic about the company's future development prospects. From 2022 to 2024, the company is expected to achieve operating income of 13.216 billion yuan, 14.535 billion yuan and 16.085 billion yuan, respectively, an increase of-20.89%, 9.98% and 10.66%, respectively, and the net profit of 4.164 billion yuan, 4.506 billion yuan and 4.821 billion yuan, an increase of 19.50%, 8.22% and 6.99%, respectively.
Risk hint: the financial market fluctuates sharply, the business progress is not as expected, and the company has a larger risk event.
