The fundamentals of the securities industry have continued to improve and the profitability has improved. Some securities companies have issued performance forecasts for 2021, and the securities companies have made profits. The performance of head securities companies increases rapidly, and the strong ones are always strong. CITIC, Guotai Junan Securities Co.Ltd(601211) , China Merchants Securities Co.Ltd(600999) revenue and net profit exceeded 10 billion yuan Citic Securities Company Limited(600030) revenue and net profit attributable to parent company were 76.570 billion yuan and 22.979 billion yuan respectively, with a year-on-year increase of 40.80% / 54.20% respectively Guotai Junan Securities Co.Ltd(601211) revenue and net profit attributable to parent company were 42.669/15.013 billion yuan respectively, with a year-on-year increase of 21.22% / 34.98% respectively China Merchants Securities Co.Ltd(600999) revenue and net profit attributable to parent company were 29.386 billion yuan and 11.613 billion yuan respectively, with a year-on-year increase of 21.04% / 22.35% respectively Guosen Securities Co.Ltd(002736) , China stock market news disclosed the profit range, and the net profit attributable to the parent company was 9-10.5 billion yuan and 8.2-8.9 billion yuan respectively, with a year-on-year increase of 36% - 59% and 71.62% - 86.27% respectively. In 2021, the provision for credit impairment of securities companies decreased, and the growth rate of net profit of most securities companies was higher than that of revenue.
Every day, the holding scale of fund sales increased rapidly, and the market share of brokerage channel sales decreased. The Fund Industry Association released the top 100 data of the holding scale of public funds of 2021q4 sales institutions. Among the Top100 public fund sales institutions, the partial stock holding scale was 6.46 trillion yuan, an increase of 4.93% month on month, and the non commodity basic insurance scale was 8.33 trillion yuan, an increase of 8.67% month on month China Merchants Bank Co.Ltd(600036) , ant fund and Tiantian Fund ranked among the top three in the sales of partial stock public funds. Tiantian fund achieved rapid growth (Mom: 10.95%), ranking higher than Industrial And Commercial Bank Of China Limited(601398) . The number of channel sales of securities companies ranked first, and the market share of channel sales of third-party fund companies increased significantly. Among the 100 sales institutions, the number of securities companies, banks and third-party fund sales companies are 46, 31 and 21 respectively. In 2021q4 partial equity fund (stock + mixed public offering), the market share of securities companies, banks and third-party fund companies were 14.54% / 58.6% / 26.36% respectively, with a month on month change of -0.77 / - 0.53 / + 2.41 percentage points respectively Citic Securities Company Limited(600030) is the only institutional entity in the brokerage channel that sells public funds with a holding amount of more than 100 billion. The holding scale of partial stock type is 104.8 billion yuan, and the holding scale of non commodity base is 115.8 billion yuan. In the era of great development of wealth management, head institutions will fully benefit, and the strong will remain strong.
The non bank sector is in a low allocation state, and the position ratio of the securities sector is improved. The fund company released 2021q4 position data. The proportion of non bank sector positions increased slightly month on month, but it is still in a low allocation state. The total market value of 2021q4 fund's non bank positions was 158707 billion yuan, an increase of 2.76% month on month, ranking No. 5 in Shenwan industry; Positions accounted for 4.56%, up 0.3 percentage points from 2021q3. In 2021q4, the non bank sector accounts for 6.37% of the total circulation market value of a shares, and the fund position is 1.81% lower than the circulation market value of a shares, which is convergent compared with the previous value (2021q3: 2.12% lower). The concentration of top 5 heavyweight stocks increased. The top five heavyweight stocks of non bank in 2021q4 were China stock market news, Citic Securities Company Limited(600030) , Ping An Insurance (Group) Company Of China Ltd(601318) , Gf Securities Co.Ltd(000776) and Huatai Securities Co.Ltd(601688) , with a concentration of 76.64%, up 9.24 percentage points month on month. The fund's willingness to allocate securities companies to the sector has increased, and the proportion of positions has increased. By the end of December 2021, the total market value of the fund's holdings in the securities sector was 131375 billion yuan, an increase of 0.79% month on month; Positions accounted for 3.77%, an increase of 0.18 percentage points month on month. China stock market news, Citic Securities Company Limited(600030) , Gf Securities Co.Ltd(000776) are the fund's main positions and increased holdings of individual shares.
The government work report requires the full implementation of the registration system and the acceleration of the full registration system. On March 5, 2022, the government work report made arrangements for the construction of the capital market, requiring the improvement of the bond financing support mechanism of private enterprises, the full implementation of the stock issuance registration system, and promoting the stable and healthy development of the capital market. The government work report continued to deploy the registration system, from the establishment of the science and innovation board and the pilot registration system, the reform of the gem and the pilot registration system, and steadily promoting the reform of the registration system to the current full implementation of the stock issuance registration system. The registration system continued to advance to the stock market, and the speed of the comprehensive registration system was accelerated to benefit the leading securities companies.
Investment suggestion: the government work report requires the full implementation of the stock registration system and the acceleration of the full registration system, which is beneficial to the leading securities companies and venture capital institutions with significant advantages of investment banks. Under the environment of increasing demand for residents' equity asset allocation, institutionalization of capital market and increase in the proportion of direct financing, big wealth management and institutional business of securities companies are the main line of development, and it is easier for securities companies with advantages of big wealth management and institutional business to obtain valuation premium. The current sector is 1.43xpb, which is in the 6% quantile since 2010. The valuation is low and maintains the "recommended" rating. In terms of individual stocks, China stock market news ( East Money Information Co.Ltd(300059) . SZ), Orient Securities Company Limited(600958) ( Orient Securities Company Limited(600958) . SH), China International Capital Corporation Limited(601995) ( China International Capital Corporation Limited(601995) . SH) and Huatai Securities Co.Ltd(601688) ( Huatai Securities Co.Ltd(601688) . SH) with obvious advantages in wealth management and institutional business are recommended.
Risk warning: the risk of tightening regulatory policies; Risk that the performance is greatly affected by market fluctuations.
