The annual performance of various securities companies is being submitted intensively. On January 28, the new performance was Sealand Securities Co.Ltd(000750) . The express shows that in 2021, the company achieved a total operating revenue of 5.167 billion yuan, a year-on-year increase of 15.30%. The net profit attributable to the parent company was 786 million yuan, a year-on-year increase of 8.34%. Just the day before, Guosen Securities Co.Ltd(002736) also issued a performance pre increase announcement, which is expected to become another 10 billion net profit brokerage.
With the continuous improvement of performance, the performance ranking of securities companies in 2021 is becoming more and more clear.
As of January 28, among the 35 securities companies with bright transcripts, there were three with operating revenue exceeding 20 billion yuan, namely Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) , China Merchants Securities Co.Ltd(600999) , of which Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) net profit attributable to parent company exceeded 10 billion yuan. If the growth limit is reached, Guosen Securities Co.Ltd(002736) is also expected to exceed 10 billion yuan.
According to the disclosed financial data, more than 80% of the business performance of securities reported good results, especially some small and medium-sized securities companies achieved relatively prominent performance growth last year. Including Guoyuan Securities Company Limited(000728) , Western Securities Co.Ltd(002673) , Caida Securities Co.Ltd(600906) , Northeast Securities Co.Ltd(000686) , Nanjing Securities Co.Ltd(601990) , the year-on-year growth of operating revenue or net profit has exceeded 20%.
In addition, Guosheng securities and The Pacific Securities Co.Ltd(601099) securities have turned losses into profits, and the net profits of China stock market news securities, Orient Securities Company Limited(600958) , Founder Securities Co.Ltd(601901) , Everbright Securities Company Limited(601788) are expected to achieve a year-on-year growth of more than 50%, which may be an important driving force for the transformation of wealth management.
The position of the head securities companies continues to stabilize, and the characteristic medium-sized securities companies catch up, but some securities companies are facing the test of declining performance or even loss. As of January 28, the revenue and net profit of six securities companies had declined year-on-year to varying degrees, and Zhongshan securities became the only loss making securities company. From the perspective of leading incentives, proprietary business may be the main drag. For example, in the unaudited financial statements of Zhongshan securities, Donghai securities and Anxin securities, the column of “income from changes in fair value” shows a loss of about 500 million yuan.
in addition, as of January 28, Guoyuan Securities Company Limited(000728) , Everbright Securities Company Limited(601788) , The Pacific Securities Co.Ltd(601099) securities, Sealand Securities Co.Ltd(000750) and Anxin securities issued announcements on the provision for asset impairment, and the corresponding amount of provision for asset impairment was 498 million yuan, 1128 million yuan, 273 million yuan, 90 million yuan and 398 million yuan. After the provision for impairment, the company’s performance was under pressure and its net profit decreased accordingly, But related risks may usher in the release.
It is worth noting that from the financial report data disclosed at present, under the background of active market trading last year, the net income of brokerage business of securities companies basically maintained a year-on-year growth. However, non bank analysts of securities companies believe that from the perspective of profit driven by securities companies in 2022, the performance elasticity and sustainability brought by handling fee growth are not expected to be very strong. Wealth management and innovative business will provide new revenue growth points 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.
more than 80% of the 35 securities companies that announced their results were popular
On January 28, Sealand Securities Co.Ltd(000750) released the performance express. In 2021, the company’s total operating revenue was 5.167 billion yuan, a year-on-year increase of 15.30%. The net profit attributable to shareholders of listed companies was 786 million yuan, a year-on-year increase of 8.34%. Weighted roe increased by 0.21 percentage points year-on-year to 4.27%.
Sealand Securities Co.Ltd(000750) said that in 2021, the company made every effort to promote transformation and upgrading, strengthen business innovation and breakthrough, pay close attention to the implementation of the three major projects of “customers, high-quality products and capacity improvement”, build five capabilities of “investment research, wealth management, comprehensive financial services, pricing sales and compliance risk management”, and achieve good results in retail wealth, investment management and other businesses. The net income and net profit attributable to the listed company in the reporting period increased year-on-year.
Based on the relatively high base number performance in 2020, the performance of securities companies in 2021 is still generally excellent. As of January 28, a total of 35 securities companies had submitted performance answers, of which 10 securities companies issued performance letters, 14 parent companies of securities companies issued unaudited financial reports for 2021, and 11 securities companies issued performance pre increase announcements.
head securities companies seek progress while maintaining stability
Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) , China Merchants Securities Co.Ltd(600999) was the first batch of leading securities companies with outstanding results, and Guosen Securities Co.Ltd(002736) also issued a performance pre increase announcement on January 27. The performance of the four leading securities companies in 2021 continued to maintain steady progress, with a year-on-year increase of more than 20% in revenue and net profit attributable to parent companies, and the weighted roe increased to more than 10% driven by the optimization of business structure.
Citic Securities Company Limited(600030) is the first securities company with good performance in 2021. Its performance growth has not only set a new record in recent six years, but also continued to sit on the throne of “first brother” with absolute advantages. The performance express shows that the company’s operating revenue last year was 76.57 billion yuan, a year-on-year increase of 40.8%; The net profit attributable to the parent company was 22.979 billion yuan, a year-on-year increase of 54.2%. Weighted roe increased by 3.58 percentage points year-on-year to 12.01%, ranking first among securities companies that have released performance.
On January 22, Guotai Junan Securities Co.Ltd(601211) and China Merchants Securities Co.Ltd(600999) released performance letters one after another. Guotai Junan Securities Co.Ltd(601211) in 2021, the operating revenue was 42.669 billion yuan, with a year-on-year increase of 21.22%; The net profit attributable to the parent company was 15.013 billion yuan, a year-on-year increase of 34.98%; Weighted roe increased by 2.5 percentage points year-on-year to 11.04%. China Merchants Securities Co.Ltd(600999) in 2021, the operating revenue was 29.386 billion yuan, with 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%; Weighted roe increased by 0.64 percentage points year-on-year to 11.49%.
On January 27, Guosen Securities Co.Ltd(002736) disclosed the announcement on the advance increase of performance in 2021, and the performance will rise in the same direction. The company expects that the net profit attributable to the parent company will reach 9 billion to 10.5 billion yuan in 2021, with a year-on-year increase of 36% to 59%.
Guosen Securities Co.Ltd(002736) said that during the reporting period, the company’s main business income such as self operated investment business income and brokerage service fee net income increased significantly compared with the same period of the previous year. At the same time, the impairment of financial assets accrued in the reporting period decreased, and the net profit attributable to shareholders of Listed Companies in the reporting period increased significantly compared with the same period of the previous year.
In addition, although China International Capital Corporation Limited(601995) has not disclosed the performance of 2021, CICC wealth, a wholly-owned subsidiary of its wealth management business, has taken the lead in submitting the paper. During the reporting period, the operating income of CICC wealth was 6.521 billion yuan, 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%.
Judging from the published performance, the ranking of head securities companies is becoming more and more clear.
the net profit of several small and medium-sized securities companies increased by more than 20%, and the “financial content” is still an important accelerator
While the advantages of head securities companies are fully displayed, many small and medium-sized securities companies also made good achievements last year, with outstanding performance growth.
Guoyuan Securities Company Limited(000728) in 2021, the operating revenue increased by 34.18% year-on-year to RMB 6.076 billion, and the net profit attributable to the parent company increased by 36.52% year-on-year to RMB 1.87 billion, second only to China stock market news securities and Citic Securities Company Limited(600030) . Western Securities Co.Ltd(002673) in 2021, the operating revenue also increased by 34.18% year-on-year to reach 6.767 billion yuan, and the net profit attributable to the parent company increased by 26.86% year-on-year to 1.417 billion yuan. Caida Securities Co.Ltd(600906) in 2021, the operating revenue increased by 23.82% year-on-year to 2.538 billion yuan, and the net profit attributable to the parent company increased by 22.6% year-on-year to 652 million yuan.
From the year-on-year growth of revenue, the above three securities companies even outperformed Guotai Junan Securities Co.Ltd(601211) and China Merchants Securities Co.Ltd(600999) in the head. In addition, Northeast Securities Co.Ltd(000686) , Nanjing Securities Co.Ltd(601990) and so on, last year’s net profit increased by more than 20% year-on-year.
The 11 securities companies that have disclosed the announcement of performance pre increase also have a considerable year-on-year increase in net profit, and their China Sheng securities and The Pacific Securities Co.Ltd(601099) securities have turned losses into profits. In addition, except that individual securities companies have doubled their growth due to their small size and low base, the performance of China stock market news securities, which is characterized by internet securities companies, has continued to maintain high growth, even exceeding the growth rate of “first brother” Citic Securities Company Limited(600030) , and the rapid momentum should not be underestimated. According to the unaudited financial report of China stock market news securities in 2021 disclosed by the parent company, the operating revenue in 2021 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%.
In addition, Orient Securities Company Limited(600958) it is estimated that the net profit attributable to the parent company in 2021 will be 5.038 billion yuan to 5.582 billion yuan, with a year-on-year increase of 85% to 105%. Founder Securities Co.Ltd(601901) it is estimated that the net profit attributable to the parent company in 2021 will be 1.645 billion yuan to 1.865 billion yuan, with a year-on-year increase of 50% to 70%. Everbright Securities Company Limited(601788) it is estimated that the net profit attributable to the parent company in 2021 will be about 3.501 billion yuan, with a year-on-year increase of 50%.
It is particularly noteworthy that among these securities companies with the highest performance growth, they basically fully benefit from the continuous development of the wealth management line.
Dongcai, which is famous for its one-stop wealth management platform, needless to say, medium-sized securities companies such as Orient Securities Company Limited(600958) have also expanded new development space in the wealth management competition through continuous business transformation in recent years and based on their multi-dimensional advantages accumulated in asset management and public offering.
In November last year, Orient Securities Company Limited(600958) fund investment consulting business was officially launched in the exhibition industry. In his speech at the release ceremony, Jin Wenzhong, chairman and President of Orient Securities Company Limited(600958) , said that the pilot launch of the investment consulting business of public funds is an effective achievement in implementing the Orient Securities Company Limited(600958) strategic plan and a new starting point for the transformation and upgrading of wealth management. It is of great significance for the company to quickly consolidate its wealth management market advantages and open up a new development track.
The impairment of 5 securities firms resulted in a corresponding decrease in net profit
As of January 28, Guoyuan Securities Company Limited(000728) , Everbright Securities Company Limited(601788) , The Pacific Securities Co.Ltd(601099) securities, Sealand Securities Co.Ltd(000750) , Anxin securities and other five securities companies have issued announcements on the provision for asset impairment, the net profit of the company has decreased accordingly, and the related risks may be released after the performance is under pressure.
On January 17, Guoyuan Securities Company Limited(000728) announced that the company had conducted an impairment test on financial assets (including financed funds, financial assets bought for resale, debt investment, other debt investment and accounts receivable) and other assets as of December 31, 2021. The provision for impairment of various assets amounted to 489 million yuan, which would reduce the company’s net profit by 367 million yuan.
On January 21, Everbright Securities Company Limited(601788) announced that the company’s provision for asset impairment and estimated liabilities in 2021 will be 1.128 billion yuan, which will reduce the company’s net profit by 1.028 billion yuan.
On January 26, The Pacific Securities Co.Ltd(601099) securities announced that the provision for asset impairment in the company’s consolidated statements in 2021 was 273 million yuan, which would reduce the company’s net profit by 204 million yuan.
On January 28, Sealand Securities Co.Ltd(000750) announced that the company’s provision for asset impairment in 2021 totaled 90 million yuan, which would reduce the company’s net profit of 68 million yuan in the current period.
On the same day, the parent company of Anxin securities Sdic Capital Co.Ltd(600061) also issued an announcement on the provision for asset impairment. The net provision for credit impairment in the consolidated statements of the parent company was 651 million yuan. Sdic Capital Co.Ltd(600061) said that the unaudited financial statements previously announced by the subsidiary Anxin securities had included part of the provision for asset impairment this time. According to the unaudited financial report of Anxin securities, the company’s single caliber credit impairment loss and other asset impairment loss are about 398 million yuan.
The revenue / net profit of 6 securities companies declined, and self operation was the main drag on
According to the disclosed performance, the business performance of more than 80% of the bonds is good. However, it is noteworthy that under the trend of Matthew effect, the performance differentiation of small and medium-sized securities companies is more significant. The revenue or net profit of six securities companies declined last year, of which Zhongshan securities even suffered a loss of 124 million yuan, which is the only securities company that has been disclosed to suffer a loss. On the whole, proprietary business or their performance decline is the main drag.
On January 20, Guangdong Golden Dragon Development Inc(000712) disclosed the unaudited financial report of its subsidiary Zhongshan securities in 2021. In 2021, Zhongshan securities realized an operating revenue of 2.729 billion yuan, a year-on-year decrease of 48.58%; The net profit was – 124 million yuan, while the net profit in the same period last year was 241 million yuan, turning from profit to loss year-on-year. While brokerage, asset management and other businesses increased slightly year-on-year, the income from changes in fair value, which reflects one of the indicators of proprietary investment income, suffered a loss of 505 million yuan.
As the only securities company listed on the new third board to disclose its performance at present, the performance of Donghai securities last year was astonishing. In 2021, its revenue and net profit reached 1.078 billion yuan and 151 million yuan respectively, down 48.96% and 56.86% respectively year-on-year.
Looking at the profit structure of its business segments, the net income of brokerage, investment banking, asset management and other businesses in 2021 was basically the same as that in 2020, with year-on-year changes of 5.53%, 4.68% and – 0.17% respectively. However, a loss of 487 million yuan was recorded in the “income from changes in fair value”, compared with 472 million yuan at the end of 2020.
Also affected by the decline of proprietary business is Anxin securities. According to the unaudited financial statements of Anxin securities in 2021 disclosed by Sdic Capital Co.Ltd(600061) , Anxin securities achieved a total operating revenue of 9.044 billion yuan in 2021, a year-on-year decrease of 3.98%; The net profit was 3.363 billion yuan, a year-on-year increase of 3.24%.
From the perspective of revenue structure, the self operated business income of Anxin securities in 2021 (calculation criteria: net income from investment and net income from changes in fair value – investment income from associates and joint ventures) was 1.894 billion yuan, a year-on-year decrease of 37.47%, of which the income from changes in fair value recorded a loss of 576 million yuan. In addition, the asset management business (parent company caliber) of Anxin securities also decreased sharply in 2021, and the revenue decreased by 93.84% year-on-year to RMB 09 million. However, due to its revenue contribution rate of only 0.1%, the impact is minimal.
According to the disclosed financial report data, under the background of active market trading last year, the net income of brokerage business of securities companies basically maintained a year-on-year growth. However, China Industrial Securities Co.Ltd(601377) the analysis believes that from the perspective of the profit drive of securities companies in 2022, the performance elasticity and sustainability brought by the increase of handling fees are not expected to be very strong. When the market returns to stability, the competitive differences among securities companies will gradually become prominent, and the institutional business with higher barriers and profit margin will promote the performance growth of head securities companies.
According to the analysis of China Post securities, the current growth supporting logic of the securities industry lies in the performance increment brought by the transformation of brokerage business to wealth management mode and the performance increment contributed by new market places bred by innovative business. 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.
