Event:
On February 25, the China Securities Association released the operating data of securities companies in 2021.
Comments:
Industry performance maintained double-digit growth and profitability improved
In 2021, 140 securities companies in the securities industry achieved an operating revenue of 502.41 billion yuan and a net profit of 191119 billion yuan, with a year-on-year growth rate of 12% and 21.3% respectively. In the past three years, the industry’s revenue and net profit have maintained double-digit growth, and the overall operation of the industry is steadily improving. From the perspective of main benefit indicators, the industry’s annual roe of 21 years is 8 31%, the net profit margin was 38%, and the profitability of the industry was significantly improved. Looking forward to 2022, we expect that the overall performance of the industry is expected to continue to maintain double-digit growth under the background of further opening of the capital market. The main reasons for the steady rise of roe are as follows: 1. The promotion of capital market reform and the improvement of the importance of the equity market. As the most direct beneficiary, securities companies show a trend of “making up the price by quantity”. 2. The income structure of securities companies is diversified, and the proportion of various businesses tends to be balanced. 3. Leverage ratio increased gradually. Affected by the rapid expansion of business, the leverage ratio of the securities industry has increased steadily. At present, there is still room for further improvement from the upper limit of regulatory requirements.
The scale of assets expanded steadily and the leverage increased significantly
At the end of 2021, the total assets of the securities industry were 10.59 trillion yuan and the net assets were 2.57 trillion yuan, an increase of 19% and 11% respectively over the end of the previous year. At the end of the year, the leverage ratio of the industry was 3.38x, 0.25 times higher than that at the end of the previous year. The improvement of the leverage ratio of the industry was mainly affected by the development of two financial services and investment business. Looking forward to 2022, we believe that the asset liability scale of the securities industry is expected to further expand, and the derivatives business will become an important field of competition among securities companies. In addition, driven by capital intermediary business and institutional trading business, the balance sheet expansion of the securities industry is expected to accelerate.
The transformation of wealth management business is accelerated, and the institutional business market is broad
In 2021, brokerage and proprietary business in the securities industry grew the fastest, accounting for 59% of the total revenue. In terms of business, the transformation of brokerage business to wealth management accelerated. In 2021, the net income from agency sales of financial products in the securities industry was 20.69 billion yuan, a year-on-year increase of 53.96%, accounting for 13.39% of brokerage business income and an increase of 3.02 percentage points. In 2021, the whole industry realized a net income of 5.457 billion yuan from investment consulting business, with a year-on-year increase of 13.61%. From the perspective of investment banking business, the scientific and technological attributes of listed companies have been significantly enhanced. In 2021, 361 companies were listed on GEM and science and innovation board, accounting for 75.05% of the total number of companies listed that year. From the perspective of asset management business, the transformation of securities companies to active management business has achieved remarkable results. At the end of 2021, the scale of asset management business in the securities industry was 10.88 trillion yuan, an increase of 3.53% year-on-year. In particular, the scale of collective asset management represented by active management increased significantly by 112.52% to 3.28 trillion yuan. In 2021, the net income of asset management business was 31.786 billion yuan, an increase of 6.10% year-on-year.
Looking forward to 2022, we believe that the major change in the securities industry lies in the improvement of institutional business barriers. In the great development and institutionalization trend of asset management business, the diversification of institutional demand puts forward higher requirements for the institutional trading and market making ability of securities companies. These demands are directly reflected in the rapid development of institutional businesses such as off-site derivatives market, and the competitive advantage and internal differentiation of securities companies are further reflected.
Investment suggestions:
Securities companies will also show certain performance in the period of accelerated capital market reform and industry transformation α Properties. In the context of the positive and deep reform of the capital market, we are still optimistic about the performance of the securities industry. At the same time, considering the positive factors such as business transformation, we believe that the profitability of the securities industry will rise. At present, the valuation is low and has configuration value, so we can maintain the investment rating of “overweight” in the industry. We believe that the brokerage industry still has great development space in the direction of wealth management, investment business and institutional business. From the perspective of the company, “differentiation” will be the key word interpreted by the industry in 2022. In the process of “differentiation”, the head securities companies and some securities companies with differentiated competitiveness are expected to obtain excess returns. It is suggested to pay attention to two main lines: 1) outstanding comprehensive strength in the securities sector For the opportunity to make up for the rising market share of leading securities companies, recommend Citic Securities Company Limited(600030) (a + H), Huatai Securities Co.Ltd(601688) (a + H); 2) In the era of wealth management, China stock market news, which has differentiated competitiveness in the field of Internet wealth management, is recommended to pay attention to Gf Securities Co.Ltd(000776) , Guolian Securities Co.Ltd(601456) .
Risk tip: the economic recovery is less than expected; Policy reform lags behind.
