On March 8, China Galaxy Securities Co.Ltd(601881) securities released its performance express for 2021, and its net profit attributable to shareholders of listed companies was 10.349 billion yuan, a year-on-year increase of 42.87%.
Up to now, 23 A-share listed securities companies have predicted that the net profit increased year-on-year last year, of which the net profit exceeded 10 billion yuan, and the number of securities companies is expected to reach 5.
According to the operating data of securities companies in 2021 previously released by the China Securities Association, the overall operating results of the securities industry have made steady progress and the capital strength has been continuously enhanced. Although the current performance of securities companies deviates significantly from the fundamentals, in the view of insiders, benefiting from favorable factors such as the promotion of comprehensive registration system reform, the repair market of undervalued financial sector under the main line of “steady growth” is still worth looking forward to.
the net profit of 5 securities companies is expected to exceed 10 billion yuan
On the evening of March 8, China Galaxy Securities Co.Ltd(601881) securities disclosed the annual performance express of 2021: the company achieved an operating revenue of 35.879 billion yuan, an increase of 51.07% year-on-year; The net profit attributable to shareholders of listed companies was 10.349 billion yuan, a year-on-year increase of 42.87% China Galaxy Securities Co.Ltd(601881) Securities said that in 2021, China’s economy overcame the impact of the epidemic and continued to improve, the capital market developed vigorously, and the company’s brokerage business, proprietary investment, international business and other businesses developed well and grew steadily.
After the stage rose, the A-share brokerage sector has reappeared the callback trend as a whole since the beginning of the year. From the perspective of the steady growth trend and forecast of the listed companies in 2021, there is a sharp contrast between the basic performance of the listed companies.
By the time of publication on March 9, 18 of the 41 A-share listed securities companies had disclosed the 2021 performance express, another 5 had disclosed the 2021 performance forecast, and the net profit attributable to the parent of 23 securities companies had increased compared with the previous year.
Except for China Galaxy Securities Co.Ltd(601881) securities, Citic Securities Company Limited(600030) , Guotai Junan Securities Co.Ltd(601211) , China Merchants Securities Co.Ltd(600999) the net profit attributable to the parent company in 2021 exceeded 10 billion yuan, 22.979 billion yuan, 15.013 billion yuan and 11.613 billion yuan respectively Guosen Securities Co.Ltd(002736) it is estimated that the upper limit of net profit attributable to the parent company in 2021 will be 10.5 billion yuan, and the net profit attributable to the parent company in 2021 of Orient Securities Company Limited(600958) , China Industrial Securities Co.Ltd(601377) , Everbright Securities Company Limited(601788) , Caitong Securities Co.Ltd(601108) , Soochow Securities Co.Ltd(601555) , Zheshang Securities Co.Ltd(601878) and other securities companies will all exceed 2 billion yuan.
As a leader in the industry, Citic Securities Company Limited(600030) while maintaining the largest scale of net profit attributable to parent companies, the growth rate of net profit attributable to parent companies in 2021 is also as high as 54.2%, leading among the above-mentioned 22 securities companies.
Among the small and medium-sized securities companies, Central China Securities Co.Ltd(601375) 2021 achieved a net profit attributable to the parent company of 506 million yuan, with a significant year-on-year increase of 385.57%. In this regard, the company said that in 2021, the supporting policies for China’s capital market reform were implemented one after another, the market trading was active, and the growth of the company’s net profit was mainly due to the year-on-year growth of main business income such as investment banking business, primary and secondary market investment business and brokerage business.
It is found that the overall improvement of the economy and the development of the capital market are the main factors for the growth of net profit of listed securities companies in 2021, and the reduction of asset impairment loss has also become an important driving force for the warming of the performance of some securities companies. After a loss of 761 million yuan in the previous year, The Pacific Securities Co.Ltd(601099) securities is expected to turn losses into profits in 2021. In this regard, the company said that in 2021, the company’s business operations were stable, the asset impairment loss decreased year-on-year, and the estimated liabilities were not accrued.
focus on performance with high certainty
According to the operating data of securities companies in 2021 released by the China Securities Association, the performance of the securities industry has grown steadily and the capital strength has been continuously strengthened. In 2021, 140 securities companies in the whole industry realized an operating revenue of 502.41 billion yuan and a net profit of 191119 billion yuan. By 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 19.07% and 11.34% respectively over the end of the previous year.
Although from the recent market performance, affected by the continuous fermentation of political conflicts on the offshore margin, the securities sector related to market risk appetite continues to decline and its performance is lower than the market, Everbright Securities Company Limited(601788) believes that at present, the market has paid significantly more attention to the undervalued securities sector. For example, northbound capital has added some leading securities companies for many weeks, At present, the valuation of the securities sector deviates from the fundamentals. The valuation is low and has allocation value. Under the main line of “steady growth”, the repair market of the undervalued financial sector is still worth looking forward to.
For short-term market fluctuations, China Post Securities believes that it will not change the good momentum of medium and long-term performance of the securities industry. In the long run, the performance growth of the industry has two supporting logic: one is the performance increment brought by the transformation of brokerage business to wealth management mode, and the other is the performance increment contributed by new market places bred by innovative business. 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.
The “government work report” submitted for deliberation on the 5th once again made it clear that “the full implementation of the stock issuance registration system” has also been valued by all parties Dongxing Securities Corporation Limited(601198) said that the “blowout” of investment banking business driven by the comprehensive registration system is expected to become the most deterministic growth opportunity in the medium and long term of the securities sector. The project supply exceeds the carrying capacity of investment banks to a certain extent, which is expected to promote the improvement of the pricing ability of securities companies. Considering that the annual report season has also started, it is recommended to pay attention to the value targets with high certainty in performance at the current time point, and it is recommended to continue to pay attention to the “growth” opportunities of the resonance between big wealth management and “Pan investment bank” in the medium and long term.
