\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 030 Citic Securities Company Limited(600030) )
Event: Citic Securities Company Limited(600030) H-share allotment results are as follows: as of February 23, 2022, the company has received 25 valid subscriptions from H-share shareholders, and the actual subscribed shares are 325650615, accounting for about 95.29% of the number of H-share allotment shares; The actual number of additional H shares that can be allotted this time is 16098540 shares, and 16 valid applications for additional H shares have been received, involving a total of 864344869 shares. There are 1189995484 valid subscription and additional valid applications for H-share allotment, accounting for about 348.21% of the number of H-share placeable shares.
The allotment of H shares was “in short supply”, and the oversubscription was 53 times. According to the company’s announcement, 1.5 h shares are allotted for every 10 shares, and the number of shares that can be allotted is 342 million. During the initial allotment of H shares, CITIC received 25 valid subscriptions and subscribed 326 million shares, with a subscription ratio of 95.29%, leaving about 16.1 million shares unsubscribed. During the subsequent additional placement of 16.1 million shares, 16 applications were received for a total of 864 million shares, with an excess of about 53 times, and the actual distribution ratio was only 1.86%. The H-share allotment is favored by investors, which is related to the low valuation of the company’s H-share. At present, its valuation is only 1.2xpb, and the A / H-share discount rate is 33%. As early as January this year, Citic Securities Company Limited(600030) a shares were allotted with 1.55 billion shares, accounting for 97.17% of the total 1.597 billion shares. A total of 1.893 billion shares were placed in the two cities, and the total funds raised were about 27.33 billion yuan. Under such a large-scale allotment and issuance, the subscription rate of more than 97% of A-Shares exceeded market expectations, and the large proportion of over subscription of H shares reflected the “short supply” of the company’s equity. After the completion of this allotment, the total share capital of the company will be 14.821 billion shares, and the net assets will reach 235.6 billion yuan, far exceeding the second ranking Haitong Securities Company Limited(600837) .
Share allotment and fund-raising focus on the development of capital intermediary business, and the securities giant is HENGQIANG. According to the use and investment direction of the raised funds released by the company, the company plans to invest no more than 19 billion yuan to develop capital intermediary business. At present, the service fee rates of brokerage, investment banking and other businesses in the industry have been reduced, and capital intermediary business, self operated investment and other heavy asset businesses have become a breakthrough in the industry’s profitability; At the same time, customers’ demand for risk management, global asset allocation and strategic investment is growing rapidly. Capital intermediary business is an important carrier for the company to provide customers with one-stop comprehensive services, which is the current development focus of the company. The focus of capital intermediary business is on capital investment and capital operation efficiency. While the company issues shares for fund-raising and increases business investment, it will use the raising of no more than 3 billion yuan to strengthen the construction of the company’s information system and make important contributions to the improvement of the company’s operation efficiency.
On the whole, the current business homogenization of the securities industry is still strong. Under the background of the continuous enhancement of Matthew effect, only the leading moat is expected to continue to exist and broaden, and the resource agglomeration effect is the most significant, so it has the opportunity to obtain a higher valuation premium Once again, the intermediary Department has the strength to optimize its own business structure and enhance its own capital structure. According to the 2021 performance express, the weighted average roe of the company reached 12%. Under the condition of relatively low leverage ratio of more than 50%, the roe has been close to the overseas head investment bank. The certainty of profitability and performance growth is worthy of affirmation, and the leading position of Chinese securities companies is stable. We are firmly optimistic about its development prospects. With the successful completion of the allotment, the risk of short-term stock price fluctuation has been basically released, and the long-term investment value of a / H shares with low valuation is highlighted. It is expected that the company’s A-share valuation will return to the range of 2.3-2.5x in the medium term and maintain the “recommended” rating.
Risk tips: macroeconomic downside risk, policy risk, market risk and liquidity risk.
