Event: Guoxin Securities released the report in 2021, the company's revenue in the first half of 2021 was 10.32 billion yuan, the net profit of YoY+28.4%; was 4.79 billion yuan, the weighted average ROE6.25%, of YoY+62.6%; increased by 0.84% over the same period last year, and the ROE level of the industry was on the middle side.
Brokerage business and investment business are the main sources of income. The proportion of corporate brokerage and wealth management / investment banking / investment / asset management / other income in the first half of 2021 is 47%, 9%, 30%, 4%, 10%, respectively, and the combined proportion of brokerage and wealth management business and investment business is about 77%. Performance is highly related to the secondary market. In terms of contribution, brokerage and wealth management / investment banking / investment / asset management / other operating income increased by 5%, 44%, 54%, 90%, 84%, respectively, compared with the same period last year. The high performance increase is mainly due to the high growth of the investment business.
The growth of brokerage business comes from the customer group, and the stock pledge business is compressed. The company's customers grew steadily, and the number of brokerage customers increased by 12.5% over the beginning of the year to 11.86 million, driving the net income of brokerage fees to increase by 15.8% to 3.2 billion yuan compared with the same period last year. Capital intermediary business due to the balance of stock pledge repurchase business decreased by 20% to 10 billion yuan compared with the beginning of the year, resulting in a 35% year-on-year drop in net interest income to 1.08 billion yuan.
The stock underwriting business has a solid market position, and the amount of bond underwriting has increased by 70%. The company's investment banking business achieved an operating income of 920 million yuan, an increase of 44.40% over the same period last year. In terms of stocks, 14.75 stocks and convertible bonds were underwritten in the first half of the year, with a market share of 2.77%, ranking 11th in the industry; the cumulative underwriting amount was about 25.21 billion yuan, with a market share of 3.49%, ranking eighth in the industry. 8.25 industries of refinancing projects ranked 10th. In the first half of the year, the company accumulated 116.96 billion yuan in lead underwriter bonds, an increase of 70.6 percent over the same period last year.
Net investment income increased by 54% compared with the same period last year, mainly driven by the scale of financial investment. The company's net investment income increased by 54% year-on-year, mainly due to a 56% year-on-year increase in financial investment assets. It is estimated that the company's own investment income in the first half of the year is about 2.2% (non-annualized), which is basically the same as that of the same period last year.
Asset management business is transformed to active management. The income of the company's asset management business reached 370 million yuan, an increase of 90.01% over the same period last year. The net value of assets under management was 155.516 billion yuan, up 6.41% from the end of last year, of which collective assets increased by 50% year-on-year to 40%, and the business was actively transformed to active management.
The return on investment exceeded expectations and maintained the "overweight" rating. As a local securities firm in Guangdong, Hong Kong and Macao, the company is expected to continue to share policy dividends with the deepening reform of the capital market. Based on the fact that the company's investment income performance exceeded our expectations, we raised the company's 21-year and 22-year profit forecasts and added 23-year profit forecasts. The net profit for 21-23 years is expected to be 8.596 billion yuan (up 33%), 9.995 billion yuan (up 41.8%) and 11.127 billion yuan, respectively. Maintain the "overweight" rating.
Risk tips: the secondary market fluctuates sharply; market trading volume decreases.