From top to bottom, the company has shaped a struggling corporate culture of "ability to do something". The management is experienced, aggressive, diligent and down-to-earth, and leads the industry in performance. Maintain the "highly recommended" investment rating.
Huaxia Securities restructuring and rebirth, strong shareholders continue to empower, aggressive management, diligent and down-to-earth staff, customer-centered organizational structure, talent advantage to help transform from boutique investment banks to head-balanced securities firms. The management team is experienced, the "investment banking gene" is strong (7 senior executives from investment banks), the core members are stable and implement the concept of long-term development. The number of employees is leading, the overall quality is high, the total number of employees of the company is the second in the industry, the number of sponsor representatives in the industry is the second, and the number of investment is the sixth, and the talent strategy drives the high growth. The organizational structure is customer-centered, and strategic customer departments and institutional business departments are set up to enhance synergies.
The asset size ranks about 10, and the revenue and net profit are hit by the top 10 in the industry. The top 5 pines ROE has long been the best traditional brokerage. Over the past 14 years, the total assets have maintained about 10, and the net assets have maintained about 10 in the past 19 years. Over the past 20 years, the total revenue and net profit have been hit by the top 10 in the industry, while the total revenue and net profit of 22Q3 ranks fifth in the industry. The company is established as a boutique investment bank, accounting for about 30% of the investment bank's income. Since 19 years of self-management and wealth management, the self-operating income has exceeded 30%, and the brokerage income is close to 30%. Under the light asset + high leverage model, ROE is the industry leader, with 4.6 times operating leverage in 21 years, and ROE16% ranks first in the traditional securities firm. 22Q3 leverage 4.0 times the industry 10th, ROE8.7% maintains the traditional securities firm first.
Investment bank trump card business continues to take the lead, wealth management transformation has achieved remarkable results, and proprietary business performance is sound. The investment bank has a high customer base and takes the lead in implementing the Baodai quantity strategy. The company has the advantage of expertise in large customers and sub-industries, and the scale of equity underwriting ranks among the top 3 in the industry; the scale of debt underwriting ranks in the top 2. The brokerage business has been deeply cultivated in Beijing, high-net worth customers have been introduced into high-quality public and private equity products in in-depth wealth management services, and the research institute has greatly expanded to grasp transactional institutional clients. Self-management is mainly solid income investment, selected high-rated credit bonds as the main position, directional trading, asset-negative matching for total control and structural adjustment; derivatives business layout is early, primary dealer qualification is strong, for the company's key direction, ranking sixth in the industry, the scale continues to grow.
Maintain the "highly recommended" investment rating. The company's management is aggressive, the core advantages of investment banking business are maintained, and the effect of wealth management transformation is remarkable. Under the fluctuation of prosperity in the first three quarters of 22 years, the company's performance still leads the traditional securities firms. The registration system reshapes the investment banking business ecology, the upward trend of prosperity continues, and we are optimistic about the room for corporate performance growth under the comprehensive registration system reform. It is estimated that the net profit attributed to the parent company from 2022 to 2024 is 92.4 million yuan 115.0 / 13.76 billion yuan respectively, which is-10% less than that of the same period last year, and the corresponding PE valuation is 14.05 times that of 20.92 shock 16.81 pounds. Taking into account the growth of the company, we give the company a target price of 29.78 yuan, corresponding to the 2022 PE valuation of 25 times, space of about 20%.
Risk tips: 1) the promotion of the full registration system is not as expected; 2) the secondary market fluctuates sharply and the trading is light.