Core view:
A number of securities companies have issued annual performance letters, and their profitability has been gradually verified. The recent performance letters of securities companies have been sorted out. On the whole, the listed securities companies perform better, and the small and medium-sized securities companies may have obvious performance differentiation caused by the head effect:
Guoyuan Securities Company Limited(000728) in 2021, the operating revenue was 6.076 billion yuan, a year-on-year increase of 34.18%; The net profit attributable to the parent company was 1.87 billion yuan, a year-on-year increase of 36.52%.
Guolian Securities Co.Ltd(601456) it is expected that the performance will increase in advance from January to December 2021. The net profit attributable to the shareholders of the listed company is RMB 880 million, with a year-on-year increase of 49.72%. The operating revenue of Minmetals securities in 2021 is RMB 1.837 billion, with a year-on-year increase of 2.24%; The net profit was 401 million yuan, down 11.72% year-on-year.
Yingda securities’ operating revenue in 2021 was 966 million yuan, a year-on-year increase of 6.90%; The net profit was 353 million yuan, a year-on-year increase of 16.62%. Anxin securities achieved an operating revenue of 12.339 billion yuan and a net profit of 4.262 billion yuan, with a year-on-year increase of 5.03% and 21.37% respectively.
Huaxin securities achieved an operating revenue of 2.035 billion yuan and a net profit of 721 million yuan, with a year-on-year increase of 28.94% and 27.99% respectively.
Guosheng securities achieved an operating revenue of 1.975 billion yuan and a net profit of 394 million yuan, with a year-on-year increase of 3.73% and 519.91% respectively.
Donghai securities (832970. NQ) released the annual report performance report for 2021: the company achieved an operating revenue of 1.078 billion yuan, a year-on-year decrease of 48.97%, and a net profit of 151 million yuan, a year-on-year decrease of 56.93%.
According to the unaudited performance report of Guodu securities (870488. NQ), the operating revenue was 1.617 billion yuan, a year-on-year increase of 1.01%; The net profit was 748 million yuan, a year-on-year decrease of 2.6%. China stock market news securities released unaudited non consolidated financial statements for 2021. In 2021, the total operating revenue was 7.3 billion yuan, a year-on-year increase of 58.76%; The net profit was 4.825 billion yuan, a year-on-year increase of 66.89%.
CICC wealth achieved an operating revenue of 6.521 billion yuan in 2021, a year-on-year increase of 23.33%; The net profit attributable to the owners of CICC wealth was 2.075 billion yuan, a year-on-year increase of 13.16%. China Merchants Securities Co.Ltd(600999) in 2021, the operating revenue was 29.386 billion yuan, a year-on-year increase of 21.04%; The net profit attributable to the parent company was 11.613 billion yuan, a year-on-year increase of 22.35%.
Securities industry perspective
Recently, the average daily turnover of the two cities has returned to the normal level of trillion scale, with active transactions. From the perspective of supervision, the policy continues to be loose and good, providing a good development environment for the securities industry. In 2018, after experiencing the stage of large impairment losses caused by credit default events and the continuous downturn of the market, the securities industry began to repair its performance upward since 2019. From the perspective of policy, a number of favorable policies for the securities industry and encouraging the development of innovative business implemented by the state will stimulate the valuation repair and upward of the securities sector. In addition, the establishment of Beijing stock exchange will directly promote the growth trend of IPO business, and is expected to improve the activity of relevant business markets and continue to catalyze the performance of securities companies.
We believe that the growth supporting logic of the securities industry at this stage lies in:
(1) the increase in performance brought about by the transformation of brokerage business to wealth management mode is mainly due to the constant trend of residents’ deposits from banks that bring low returns and liquidity to the stock market that can bring high returns and high liquidity. Superimposed on the pilot expansion of securities companies’ fund investment advisers and the gradual expansion of fund holdings, the outlook of the securities industry continues to rise.
(2) the performance increment contributed by the new market places bred by innovative business, such as the expansion of securities lending scale, the strong demand for derivatives business inside and outside the market, the exploration of securities settlement fund model and the popularization of “investment bank + investment” two wheel driven business model, will raise the performance level of securities companies. From the perspective of the whole securities industry, the above growth support logic will provide a new revenue growth point for the whole industry; For large-scale securities companies, it will further develop in the strategic direction of building aircraft carrier level securities companies in the country; For small and medium-sized securities companies, their exhibition direction and ability will benefit from the new blue ocean market and earn differentiated income.
Recommended targets: 1) leading securities companies: Citic Securities Company Limited(600030) *; 2) Securities companies with wealth management characteristics: Gf Securities Co.Ltd(000776) *, Orient Securities Company Limited(600958) *, China Industrial Securities Co.Ltd(601377) * (*: not covered in depth)
Risk tip: the effect of policy implementation is less than expected or even tightened, liquidity is tightened, stock based turnover has fallen sharply, and the overall market downside risk.
