Summary of the report:
Shen Wanhongyuan Securities released its 2020 annual report on March 30, 2021. The data show that the annual operating income was 29.409 billion yuan, an increase of 19.58% over the same period last year. The net profit attributed to shareholders of listed companies was 7.766 billion yuan, an increase of 35.41%. The weighted average ROE was 9.05%, up 1.64% from the same period last year.
Comments:
Corporate finance business as a whole declined slightly, but investment banking business grew faster. In 2020, the company's corporate financial business achieved operating income of 2.265 billion yuan, down 1.22% from the same period last year. Among them, the investment banking business achieved revenue of 1.493 billion yuan, an increase of 25.14% over the same period last year. A total of 27 equity financing projects were completed in the whole year, including 7 IPO projects, 15 refinancing projects, 5 selected layers (ranked second in the industry), with a financing amount of 27.344 billion yuan, and 2 approved M & A projects, ranking seventh in the industry.
The personal financial business grew steadily and the brokerage business performed brightly. In 2020, the company's personal financial business achieved operating income of 9.007 billion yuan, an increase of 24.51% over the same period last year. Among them, the brokerage business benefited from the overall recovery of the capital market, with securities customer escrow assets reaching 4.19 trillion yuan for the whole year, an increase of 30.89% over the end of last year, a market share of 6.83%, ranking at the top of the industry, and achieving a net income of 4.279 billion yuan for agency buying and selling business. firmly in the forefront of the industry.
The market competitiveness of trading business has greatly improved, and the total new scale of over-the-counter options ranks first in the industry.
In 2020, the company's institutional services and trading sector achieved operating income of 16.203 billion yuan, an increase of 20.93% over the same period last year. In the prime broker business, the income of seat leasing reached 692 million yuan in 2020, an increase of 64.18% over the previous year, with a market share of 4.12%. Proprietary trading business has obtained a number of innovation qualifications, the total new scale of over-the-counter options ranks first in the industry, and the market ranking has been greatly improved.
The income of investment management business has maintained growth, and the scale of public offering funds is in the forefront of the industry. In 2020, the company's investment management business achieved an operating income of 1.934 billion yuan, an increase of 16.02% over the same period last year. Among them, the achievements of equity management products are outstanding, comprehensively surpassing the CSI 300 index in the same period; the ABS project has made significant progress, issuing 14 copies in the whole year, with an issuance scale of 18.889 billion yuan; by the end of 2020, the company's public offering fund reached 587.945 billion yuan, ranking in the forefront of the industry.
Investment suggestion: we estimate that the company's income in 2021 will be 321.6 yuan, 357.03 yuan and 39.676 billion yuan respectively, and the net profit of the parent company will be 86.16 yuan, 98.11 yuan and 11.217 billion yuan respectively.
Risk tips: intensified market competition, macroeconomic impact, equity market fluctuations, etc.