Main points of investment: the company is characterized by fixed income and is a scarce target in the existing listed securities firms. Committed to building a fixed income characteristics, asset management business as the core securities companies. The reasonable value range is 5.70-6.08 yuan, maintaining the "better than the market" rating.
[event] the first Entrepreneurship achieved operating income of 530 million yuan in the first quarter of 2022, + 46.2% year-on-year; net profit of 71.89 million yuan, + 421.8%; corresponding to EPS 0.017 yuan, ROE0.5%. The sharp increase in the company's performance was mainly due to a low base due to the return of net profit of 94% in the same period last year.
Continue to promote the transformation and development of brokerage business and actively carry out team building. The revenue of brokerage business in the first quarter of 2022 was 96.3 million yuan,-5.2% compared with the same period last year. The company continues to promote the transformation of brokerage business to wealth management, promote organizational restructuring, actively carry out team building, enrich product lines, and enhance customer development and comprehensive service capabilities. There was active trading in the whole market in the first quarter of 2022, with an average daily stock base trading volume of 1.076 trillion yuan, + 7.2% year-on-year, and a balance of 1.6728 trillion yuan, + 1.1% year-on-year,-8.7% from the beginning of the year.
Consolidate the foundation of traditional investment banking business and expand innovative business. Investment banking revenue in the first quarter of 2022 was 76.53 million yuan, a year-on-year increase of 42.3%. The underwriting scale of equity business is + 309.2% compared with the same period last year, and the underwriting scale of bond business is + 24.3% year on year. The main underwriting scale of equity is 1.94 billion yuan, ranking 31st; among them, IPO 1, raising 500 million yuan; refinancing 1, underwriting 1.4 billion yuan. The main underwriting scale of bonds is 3.5 billion yuan, ranking 52nd, all of which are corporate bonds. There are 7 IPO reserve projects, ranking 37th, including 1 main board in two cities, 1 in Beijing Stock Exchange and 5 in Science and Technology Innovation Board. The company's investment bank continues to consolidate the foundation of traditional investment banking business such as equity financing, debt financing and M & A, while actively expanding innovative businesses such as green debt and rural revitalization debt to provide clients with comprehensive financial services.
The fixed income characteristic is obvious, obtains the market leading position. In the field of fixed income business, the company has a brand advantage and has formed a sales and trading model that is quite unique and suitable for the development of medium-sized securities firms. 1) fixed income sales: while maintaining high market coverage in such aspects as treasury bonds, policy bank financial bonds, non-financial corporate debt financing instruments, etc., we continue to develop new types of business for sale. 2) fixed income transaction: the transaction size of fixed income products in 2021 was 3.93 trillion yuan, which was + 10.97% compared with the same period last year.
Strengthen product creation, enhance proactive management capabilities, and create ESG and FOF investment first-mover advantages. The revenue of asset management business in the first quarter of 2022 was 250 million yuan, a year-on-year increase of 21.7%. The company continues to vigorously implement the requirements of the new regulations on asset management, constantly improve its active management ability and product creation ability, create the first-mover advantage of ESG and FOF investment, and complete the public participation transformation of large collection products. The amount of assets under management in 2021 is 58.5 billion yuan,-19.0% compared with the same period last year. The total management scale of fund creation in 2021 is 810.7 billion yuan, which is + 42.7% compared with the same period last year.
Take the absolute income as the goal, adopt the multi-strategy combination development. In the first quarter of 2022, the net loss on proprietary business investment (including fair value) was 25.75 million yuan, which was 81.6% lower than the same period last year. The company continues to strengthen macro research and judgment, reasonably control positions, actively select subdivided industries and companies with deterministic competitive advantages and in line with the logic of long-term growth, and explore market structural investment opportunities.
[investment suggestion] We expect the company's net profit per share from 2022 to 2024E to be 0.19,0.20,0.22 yuan respectively, and its net assets per share to be 3.80,4.19,4.39 yuan respectively. We give it 1.5-1.6x Pmax B in 2022 (taking into account the fact that the company is characterized by fixed income, it is a scarce target among the existing listed securities firms, and the asset management actively manages the product yield at the top, and the valuation premium is given appropriately), the corresponding reasonable value range is 5.70-6.08 yuan, maintaining the "better than the market" rating.
Risk hint: the continued downturn in the market leads to a decline in the scale of business, and market supervision is further strengthened.
