In the face of “falling and falling” stock prices, securities companies shot again.
On December 1, Tianfeng Securities Co.Ltd(601162) announced the progress of repurchasing A shares. By the end of November, the company had repurchased 36.3 million a shares, with a total investment of 141 million yuan.
For the reasons for share repurchase, Tianfeng Securities Co.Ltd(601162) said that based on the confidence in the sustainable development of the company, in order to safeguard the interests of the majority of investors, further establish and improve the company’s long-term incentive mechanism and create long-term sustainable value for shareholders, it is planned to repurchase the company’s shares for the implementation of the company’s employee stock ownership plan.
In the face of the continuous decline of stock price, more than Tianfeng Securities Co.Ltd(601162) securities companies have adopted share repurchase as employee equity incentive plan, and Huatai Securities Co.Ltd(601688) and Soochow Securities Co.Ltd(601555) since this year. As for brokerage stocks, the securities industry has made a lot of money this year, but the stock market of the two tier stock market has been delayed. Some stock prices have even suck up this year.
Tianfeng Securities Co.Ltd(601162) has been repurchased by hundreds of millions
According to the disclosure of Tianfeng Securities Co.Ltd(601162) , in November 2021, the Company repurchased 36.3 million A-Shares through centralized bidding transaction, accounting for 0.4189% of the total share capital. The highest purchase price was 4.01 yuan / share, the lowest price was 3.8 yuan / share, and the total amount paid was 141 million yuan (excluding stamp duty, commission and other transaction expenses).
The repurchase of Tianfeng Securities Co.Ltd(601162) originated from the previous announcement. On October 29 this year, the relevant board of directors of Tianfeng Securities Co.Ltd(601162) passed the proposal on the repurchase of A-Shares of the company by means of centralized bidding transaction.
The announcement disclosed that Tianfeng Securities Co.Ltd(601162) intends to repurchase no less than 43.33 million shares and no more than 86.66 million shares, the repurchase price is no more than 6.92 yuan / share (inclusive), the total amount of funds for repurchase is no more than 600 million yuan, the source of funds is its own funds, and the shares will be used to implement the employee stock ownership plan after repurchase.
However, judging from the current repurchase progress, under the continuous decline of share price, Tianfeng Securities Co.Ltd(601162) the cost for repurchase may be much lower than the estimated cost – no more than 600 million yuan.
According to the data of , as of December 1, Tianfeng Securities Co.Ltd(601162) shares closed at 3.9 yuan / share, down 36.07% this year, which is slightly lower than the company’s 8.2 billion yuan fixed issuance price of 4.09 yuan / share in April this year.
In terms of performance, Tianfeng Securities Co.Ltd(601162) achieved an operating revenue of 2.918 billion yuan in the first three quarters, a year-on-year decrease of 15%; The net profit attributable to the shareholders of the listed company was about 635 million yuan, a year-on-year decrease of 9.61%. However, in absolute terms, Tianfeng Securities Co.Ltd(601162) the net profit of 635 million yuan in the third quarter has exceeded the level of last year.
It is worth mentioning that since this year, under the overall downward trend of the stock price of securities companies, there are also Huatai Securities Co.Ltd(601688) and Soochow Securities Co.Ltd(601555) taking share repurchase actions for equity incentive of employees and deep binding with employees to further stimulate the vitality of the company.
For example, on January 12 this year, Huatai Securities Co.Ltd(601688) announced the progress of share repurchase. On January 8, Huatai Securities Co.Ltd(601688) actually repurchased 90766495 A-Shares of the company, accounting for 0.999999% of the total share capital of the company. The average repurchase price was 18.46 yuan / share, and the total amount of funds used was 1.675 billion yuan.
On April 1 this year, Soochow Securities Co.Ltd(601555) announced the repurchase implementation results. As of March 30, 38799814 A-Shares of the company had been repurchased, accounting for 0.9999% of the total share capital of the company. The average repurchase price was 9.05 yuan / share, and the total amount of funds used was 351 million yuan.
not suck stock price
this year, the overall environment of the securities industry is better. However, the stock prices of the two tier securities companies are very suck, except for a few securities companies who are considered to be doing well in wealth management.
According to the data disclosed by the China Securities Association, 140 securities companies in the first three quarters of 2021 had total assets of 10.3 trillion yuan and achieved operating revenue of 366.36 billion yuan, a year-on-year increase of 7%; The net profit was 143.979 billion yuan, a year-on-year increase of 8.51%. In the first three quarters, 124 securities companies made profits, accounting for 89%. By business, the net income of investment banking business was basically flat, while self operated business, brokerage business, asset management and other businesses increased. From the perspective of business composition, in the first three quarters of 2021, the self operated, brokerage and asset management of securities companies achieved revenue of 106.4 billion yuan, 100.8 billion yuan and 21.96 billion yuan respectively, with a year-on-year growth rate of 5%, 11.2% and 3.3% respectively, accounting for 29%, 27.3% and 6% of operating revenue respectively.
In terms of the performance of the secondary market of brokerage stocks, it disappointed investors and did not match the performance growth.
Specifically, the three leading wealth management securities companies – Gf Securities Co.Ltd(000776) , East Money Information Co.Ltd(300059) , Orient Securities Company Limited(600958) have ranked among the top three in terms of growth this year. As of December 1, they have quoted 23.79 yuan / share, 34.74 yuan / share and 14.5 yuan / share respectively, up 50.71%, 34.69% and 27.92% respectively this year. The fourth highest growth is China Industrial Securities Co.Ltd(601377) , up slightly 2.96% this year.
In addition to the above four securities companies, more than 40 other securities companies have closed down this year, and the share prices of 13 securities companies have fallen by more than 30% this year, of which Boc International (China) Co.Ltd(601696) has fallen the most, down 50.3% this year.
Everbright Securities Company Limited(601788) analyst Wang Yifeng believes that at present, under the background of the great development of the capital market, the transactions in the A-share market are active, the wealth management, investment business and institutional business of the brokerage industry are facing a period of rapid development or transformation, and the undervalued brokerage sector has a high allocation cost performance across the year. From the company level, leading securities companies and some securities companies with differentiated competitiveness are expected to obtain excess returns.
(brokerage China)
