In 2020, the company realized revenue of 18.784 billion yuan (+ 33.29%), net profit of 6.616 billion yuan (+ 34.73%) belonging to shareholders of listed companies, net assets of 80.907 billion yuan (+ 43.94%) and basic earnings per share of 0.72 yuan (+ 28.57%) at the end of the reporting period.
The brokerage business is growing rapidly and the transformation of wealth management is successful. In 2020, the company's brokerage and wealth management business achieved operating income of 9.999 billion yuan (+ 48.03%). Among them, the company's agent transaction fee net income of 5.074 billion yuan (+ 45.72%), market share of 5.03% (excluding seat leasing), ranking third in the industry. The company's wealth management business has been transformed successfully. In 2020, the company's net income from consignment sales of financial products was 708 million yuan (+ 233.58%), with a market share of 5.27%, ranking third in the industry.
IPO underwriting performance increased significantly. In 2020, the company's investment banking business achieved operating income of 1.979 billion yuan (+ 25.49%). The company completed 26.8 stocks and convertible bonds underwriting, with a market share of 3%. The cumulative underwriting amount was about 29.543 billion yuan (+ 66.68%), of which 11.5 companies completed IPO underwriting. The company actively seized the opportunity of registration reform. In 2020, there were 16 companies on the gem and Science and Technology Innovation Board IPO project, and 8 on the IPO project. As a state-owned securities firm in Shenzhen, the business development area is accurately located in Shenzhen, Guangzhou, Beijing, Shanghai, Hangzhou and other areas with a large number of emerging small and medium-sized enterprises. It is expected that the company's investment banking business will still have an advantage in Science and Technology Innovation Board and gem in the future.
The investment and trading business is relatively stable and is still the main revenue force of the company. The company's investment and trading business achieved a total operating income of 3.909 billion yuan (- 0.86%). Among them, equity investment takes asset allocation and multi-strategy combination as the pillar to achieve a good investment return; fixed income adjusts its strategy in time in the face of increased volatility in the bond market to obtain a better investment return than the market; and the growth rate of the private equity fund industry slows down. it is more difficult to raise money. In 2020, Guoxin Hongsheng realized operating income of 408 million yuan (- 0.49%), net profit of 237 million yuan (- 4.05%), total investment of 883 million yuan, and reduction of more than 672 million yuan. Overall, the investment and trading business still accounts for 20.81% of the total revenue, making it the company's second largest revenue business.
The asset management business actively carries out the transformation of active management. The company's asset management business achieved an income of 396 million yuan (+ 19.59%). In 2020, under the influence of the transformation of active management, the scale of corporate collective, single and special asset management business decreased, with a net asset management scale of 146.154 billion yuan (- 8.85%). The company actively carries out the product-driven strategy, strengthens the institutional customer service ability, promotes the public offering transformation of the large collection in an orderly manner, and steadily improves the active management ability.
Investment suggestion: the company completed a fixed increase of 15 billion yuan on August 14, 2020, with a substantial increase in capital strength, and the company's current wealth management business, investment banking business and other businesses are developing steadily, but recently, the CSRC and the China Securities Association have adopted a series of strong regulatory measures. Under the registration system, the supervision is stricter. In addition, on April 16, the Securities Regulatory Commission revised and promulgated the guidelines on the Evaluation of the attributes of Science and Technology Innovation (for trial implementation), raising the listing threshold of Science and Technology Innovation Board. The IPO project is expected to tighten in the short term, affecting the performance release of investment banks. We forecast that the company's basic earnings per share from 2021 to 2023 will be 0.76,0.75,0.76 yuan respectively, and the net assets per share will be 7.94,8.58,9.03 yuan respectively.
Risk hint: market fluctuation risk, industry supervision strengthened.
