Incident: On March 30, CITIC Construction Investment released its 2022 annual report.
The impressive performance of the first three quarters did not continue, and self-operating pressure in Q4 dragged down the full-year results. In '22, the company achieved revenue of 27.565 billion yuan, -8% year on year, and net profit of 7.507 billion yuan, -27% year on year. Q4 single-quarter revenue was 4,862 million yuan, -48% year on year, -41% month on month; Q4 net profit was 1,071 million yuan, -64% year on year and -48% month on month. ROE was 9.99%, -5.81 pct year on year, far higher than the industry's 5.3% level.
Total assets in '22 were 510 billion, +13% year on year, and the net assets of the mother returned to the mother were 93.2 billion, +16% year on year. Operating leverage was 4.35 times, down 0.21 times from the end of the previous year. Brokers, investment banks, investment, credit, asset management, and others accounted for 29%, 29%, 22%, 12%, 5%, and 5% respectively.
The fee-type business bucked the trend by +2%. (1) The performance of the brokerage business outperformed the market, and the wealth management transformation had remarkable results. Net revenue from brokerage business was 5.930 billion, -5% year on year; Q4 revenue was 1,356 million yuan, -18% year on year, -11% month on month; the annual revenue decline was better than the growth rate of market stock base size of -10%. The net revenue of securities traded by corporate agents was 3,082 million yuan, -11% year on year, with a market share of 4.03%, ranking 6th in the industry; seat rental revenue was 1,334 million, +14% year on year; net revenue from agent sales of financial products was 779 million, -17% year on year, with a market share of 5.37%, ranking 6th in the industry; custodian securities market capitalization accounted for 5.93%, ranking 3rd in the industry. The company insists on building the three brands of “good investment, good products, and good transactions” and continues to promote the high-quality development of wealth management. (2) The leading position of large investment banks is stable, and various indicators are at the forefront of the industry.
Investment banking business revenue was 5.927 billion, +5% year on year; Q4 revenue was 1,360 million yuan, -37% year on year, -22% month on month.
In 2022, the company's IPO was 58.7 billion, +10% year on year, with a market share of 9.69%, ranking second in the industry; the refinancing scale was 74.7 billion, -13% year on year, with a market share of 11.60%, ranking 3rd in the industry; the bond underwriting scale was 1306.8 billion, -15% year on year, with a market share of 11.40%, still ranking second in the industry. The company's investment banking project reserves are rich, with 79 IPOs under review and 24 refinancing companies, all ranking second in the industry. The company will further advance the “industry+region+product” matrix layout, continuously improve the customer service system, maintain stable project reserves, and it is expected that the competitive advantages of the company's investment banks will continue to be realized under the comprehensive registration system. (3) Asset management business revenue is steady, and the scale of active management has increased. Asset management business revenue was 982 million, -2% year on year; Q4 revenue was 251 million, -11% year on year, -23% month on month. The asset management scale was 477.5 billion, +12% over the same period last year. Among them, pooled asset management was 204.9 billion, +27% year on year; single asset management was 13.3 billion, +1% year on year; and special asset management was 142.3 billion, +4% year on year. The proportion of active management scale increased further. The asset management scale of CITIC Construction Investment Fund was RMB 102.6 billion, of which 56.5 billion yuan was publicly traded products, an increase of 17% over the previous year; the size of special account products was 45.9 billion yuan, an increase of 299% over the previous year.
Risk warning: brokers' performance fell short of expectations; regulatory policies were tightened; stock market slump.