On March 9, the A-share market continued the adjustment trend of many days before. More than 3500 stocks in the two cities fell, and the index staged a V-shaped reversal.
it is worth mentioning that in the continuous adjustment of the market and the sharp decline of the share price of listed companies, dozens of Listed Companies in many industries have started repurchase, and small partners in the securities industry have joined the “repurchase army”
On March 9, Tianfeng Securities Co.Ltd(601162) announced that it had spent about 112 million yuan to buy back 3148 shares of A-Shares in March this year, which was another move after the company spent 141 million yuan to buy back shares last November.
The Chinese reporter of securities companies noted that since this year, there have been 48 concept stocks of securities companies in a shares. Except for Chinalin Securities Co.Ltd(002945) , all other securities companies have fallen. Industry insiders believe that due to the recent conflict between Russia and Ukraine, the global stock market has fallen, and the valuation of brokerage stocks is gradually at a historical low, which may reach a better layout time point.
Tianfeng Securities Co.Ltd(601162) join the “repurchase army”
In order to boost market confidence in the face of sharp market fluctuations, dozens of listed companies including Qi An Xin Technology Group Inc(688561) , Beijing Bdstar Navigation Co.Ltd(002151) , etc. have issued repurchase announcements since March 7. Among them, Xin Hee Co.Ltd(003016) , Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) , Anhui Anke Biotechnology (Group)Co.Ltd(300009) , Xinfengming Group Co.Ltd(603225) and Shanghai Carthane Co.Ltd(603037) even belong to the first repurchase of shares by these companies in history.
It is worth mentioning that among many listed companies with repurchase actions, there are also representatives in the securities industry, Tianfeng Securities Co.Ltd(601162) is one of them.
On March 9, Tianfeng Securities Co.Ltd(601162) announced that based on firm confidence in the company’s future development prospects and recognition of the company’s value, in order to safeguard the interests of investors, especially small and medium-sized investors, and increase investor confidence, the company continued to implement the repurchase plan in accordance with the established A-share repurchase plan.
At the end of October last year, Tianfeng Securities Co.Ltd(601162) issued an announcement on the plan of repurchasing the company’s a shares, saying that the repurchased shares were intended to be used in the “Employee Stock Ownership Plan”.
In fact, as a highly intelligence intensive industry, the human resources of the securities industry are very important and highly mobile.
the person in charge of Tianfeng Securities Co.Ltd(601162) has said on many occasions that talents are the core asset of securities companies, and the company also takes “entrepreneur oriented” as the core value of its development.
Tianfeng Securities Co.Ltd(601162) said that using the repurchased shares for the implementation of the employee stock ownership plan is conducive to establishing and improving the company’s incentive mechanism, fully mobilizing the enthusiasm of the company’s employees and enhancing investors’ confidence in the company’s future development.
Specifically, in March 2022, Tianfeng Securities Co.Ltd(601162) repurchased 31485400 A-share shares through centralized bidding transaction, accounting for 0.3633% of the total share capital of the company. The highest purchase price was 3.6 yuan / share, the lowest price was 3.48 yuan / share, and the total amount paid was 112 million yuan.
According to the repurchase plan of Tianfeng Securities Co.Ltd(601162) , the upper limit of repurchased shares is 86.66 million shares, which is 1% of the total share capital. A total of 67.787 million A-Shares have been repurchased, which means that it still has nearly 19 million shares or will complete the repurchase in the future.
Tianfeng Securities Co.Ltd(601162) said that the repurchase plan has not been fully implemented, and the subsequent share repurchase will be implemented in strict accordance with the requirements of relevant laws and regulations, and the obligation of information disclosure will be performed in a timely manner.
Tianfeng Securities Co.Ltd(601162) said that if the ESOP is promoted smoothly, Tianfeng Securities Co.Ltd(601162) will achieve deeper binding with its outstanding talents. In addition, at present, it is the low point of Tianfeng Securities Co.Ltd(601162) share price. At this time, it is timely for employees participating in the shareholding to choose repurchase
According to the third quarterly report of Tianfeng Securities Co.Ltd(601162) 2021, its net profit in the third quarter was 305 million yuan, a year-on-year increase of 2.61%; Deduct non net profit of 301 million yuan, with a year-on-year increase of 15.29%. The accumulated net profit in the first three quarters was 635 million yuan, 140% of that in 2020. In addition, the total assets of the company increased by 35.29% over the end of the previous year to 110135 billion yuan, breaking the 100 billion mark.
In addition, according to Tianfeng Securities Co.Ltd(601162) announcement, its annual report will be disclosed at the end of March. Whether the performance will achieve a new breakthrough is worthy of attention.
brokerage stocks layout at the right time
Since this year, the A-share market has shown a trend of shock and decline. In addition, due to the geopolitical impact of the recent conflict between Russia and Ukraine, the global stock market has fallen.
On March 9, the Shanghai and Shenzhen stock index once fell sharply, the Shanghai index once fell more than 4%, fell to 3200 points, and rebounded in the afternoon. As of the close, the stock index fell 1.13% and stood at 3200 points again; The Shenzhen Component Index fell 1.12% and the gem index fell 0.63%.
As for the influencing factors of the recent trend of a shares, the strategic analyst of a South China securities firm analyzed: first, it is worried about the external situation. The Russia Ukraine negotiations have not made phased progress yet, the geographical situation is uncertain, and the market risk appetite has been greatly reduced; Second, the rise in the prices of crude oil, natural gas, wheat, corn and other commodities, which account for a large proportion of exports from Russia and Ukraine, has compressed the profits of small and medium-sized tourism enterprises, and the global inflationary pressure has further increased.
The above analysts believe that, in fact, after the adjustment of the market since the beginning of the year, the overall valuation of A-Shares has decreased significantly, and the bottom of the market has greatly improved the safety margin. In addition, the escalation of the conflict between Russia and Ukraine has been gradually expected by the market, and the more positive economic growth target of the two sessions is also expected to enhance the market’s confidence in steady growth. According to the prediction of mainstream institutions, the Academy of Social Sciences predicts a growth rate of about 5.3% this year; The World Bank forecast is 5.1%; IMF forecasts only 4.8%; The consensus forecast is 5.23%.
The above analysts further said that historically, geopolitical conflicts will only affect short-term risk appetite, and the impact is relatively limited. At present, there is a strong demand for steady growth, monetary policy and fiscal policy have room for overweight, and it is less likely to continue to fall sharply in the future. The A-share market is expected to usher in a certain repair.
According to the data, since the beginning of 2022, among the 48 concept stocks of securities companies in the securities industry, only Chinalin Securities Co.Ltd(002945) which has strengthened the transformation of science and technology and finance has increased by 12.3% this year, and the rest have all fallen. China stock market news has fallen by 34.63% at most, and Tianfeng Securities Co.Ltd(601162) has also fallen by 15.8%.
On March 9, the full day turnover of the two markets reached 1.16 trillion yuan, and the total turnover of the Shanghai and Shenzhen markets has exceeded trillion yuan for the fifth consecutive trading day, which means that although the overall trend of the market has fluctuated downward this year, A-share transactions are still active, and the brokerage industry wealth management and investment business are still facing a transition period of rapid development, Undervalued securities companies may have a higher configuration cost performance.
Boc International (China) Co.Ltd(601696) analyst Lin Yuanyuan believes that the deepening reform of the capital market continues to be promoted, the undervalued value is more firm and bullish on securities companies. The 2022 government work report takes steady growth as the keynote of 2022, proposes to strengthen the implementation of prudent monetary policy, adhere to the supply side structural reform as the main line, strengthen financial support for the real economy, and establish a stable macro liquidity environment. The registration system reform is also expected to speed up the implementation this year, which is good for the securities business in many aspects.
Lin Yuanyuan said that with the continuous progress of favorable policies, securities companies still face broad development space. Under the undervalued value caused by changes in the external environment, they are more determined to look at the future trend of securities companies. If the overseas situation eases and the market valuation repair drives the trading activity again, it is expected to help the valuation repair of the board.
