“ Featured Summary: , with a market share of 4.2%, ranking 6th in the industry. Operating leverage is stable at about 3.8 times, and investment assets at the end of the quarter fell by 1% month-on-month. The annualized net investment income is estimated. The rate was -3.9%. In 1Q22, the company's total assets were 744.1 billion yuan, net assets were 164.1 billion yuan, customer deposits were 118.1 billion yuan, and operating leverage was 3.81 times, which remained stable month-on-month. In 1Q22, investment assets were 269.8 billion yuan, down 1.3% from the end of the previous year. , tested.”
1. Event: Haitong Securities released its 2022 first quarterly report, results Lower than expected.
2. In 1Q22, the company achieved revenue of 4.131 billion yuan, down 63% year-on-year, and net profit attributable to the parent was 1.5 billion yuan, down 59% year-on-year; weighted ROE (not annualized) 0.92% , a year-on-year decrease of 1.42pct.
3. The performance was lower than expected, and investment losses dragged down the performance; the decrease in subsidiary sales revenue dragged down other income.
4. In 1Q22, the main income of securities was 2.73 billion yuan (excluding trade and government subsidies, etc.), down 67% year-on-year; brokerage, investment banking, asset management, and net interest income were Realized revenue of 1.34 billion yuan, 1.78 billion yuan, 5.4 billion yuan, and 1.66 billion yuan, which were flat, +38%, and -37% year-on-year respectively.
5. Net investment income (excluding long-term investment) and fair value total loss of 2.6 billion yuan, yoy-191% (about 2.9 billion yuan in 1Q21), becoming the largest performance drag.
6. Affected by the decrease in sales revenue of subsidiaries, the company’s other business revenue decreased by 71.12% to 715 million yuan.
7. The revenue of investment banking reached a new high in the same period, mainly driven by the growth of IPO business, and the market share of IPO lead underwriting has ranked third in the industry since the beginning of the year.
8. 22ytd's IPO lead underwriting scale was 20.1 billion yuan, a year-on-year increase of 37%; its market share was 10.1%, ranking third in the industry.
9. Year-to-date refinancing lead underwriting scale of 3.7 billion, down 20% year-on-year, market share 2.2%, up 0.2pct year-on-year, ranking 13th in the industry; The underwriting scale was 128.2 billion yuan, down 16% year-on-year, with a market share of 4.2%, ranking sixth in the industry.
10. The operating leverage was stable at about 3.8 times, and the investment assets decreased by 1% at the end of the quarter , the estimated annualized net investment yield is -3.9%.
11. In 1Q22, the company's total assets were 744.1 billion yuan, net assets were 164.1 billion yuan, customer deposits were 118.1 billion yuan, and operating leverage was 3.81 times, which remained stable month-on-month.
12. The investment assets in 1Q22 were 269.8 billion yuan, down 1.3% from the end of the previous year. The company's 1Q22 annualized net investment yield (excluding long-term equity investments) was estimated to be about -3.88%, a significant year-on-year and month-on-month decline.
13. During the reporting period, the investment leverage (investment assets/net assets attributable to the parent) was 1.64 times, down 0.03 times from the previous month.
14. Impairment decreased by 70% year-on-year, accounting for about 8.2% of PPOP; credit business Assets have shrunk.
15. In 1Q22, the company's credit impairment was 120 million yuan, a year-on-year decrease of 71%, mainly because the impairment loss of financing business decreased, and the proportion of credit impairment in pre-provision profit was 8.2%, which remained stable year-on-year.
16. At the end of the period, the financing amounted to RMB 71.1 billion.A decrease of 4.1 billion yuan compared with that of last year; financial assets purchased under resale agreements (mainly stock pledged) were 37.6 billion yuan, a decrease of 2.1 billion yuan from the previous month.
17. The time limit for the regulatory measures for asset management business has expired, waiting for bottoming out.
18. In March 2021, the company was arrested by the China Securities Regulatory Commission due to risk control compliance issues It was ordered to suspend its bond investment advisory business for institutional investors and investment advisory services for securities and futures institutions’ private asset management products for 12 months. The current 12-month regulatory order has expired.
19. Investment analysis opinion: maintain the overweight rating and lower the profit forecast for 2022-24.
20. Based on the overall downward trend of the A-share market since the beginning of the year, the assumption of the company's investment rate of return has been lowered, thereby lowering the profit forecast for 22-24 years. It is estimated that the net profit attributable to the parent in 22-24 8.8, 13.1, and 14.5 billion yuan (the original forecast was 13.0, 15.6, and 17.4 billion yuan in 22-24), -31.4%, +48.3%, and +10.7% year-on-year.
21. Considering the significant increase in the market share of the company's IPO business, if the follow-up reform of the comprehensive registration system is advanced, the company will benefit significantly, and the overweight rating is still maintained.
22. The current closing price corresponds to 22-year dynamic PE 13.2 times and dynamic PB 0.69 times.
23. Risk warning: 1. If the liquidity is greatly tightened, it will affect the market transaction volume, thereby affecting the business performance of brokerage and other businesses; 2. The registration system reform is less than expected, IPO slow down.