Since this week, the A-share shock has intensified, and the Shanghai stock index once fell below 3150 points. As a “market vane”, brokerage stocks also continued to decline. As of March 10, the wind securities index has fallen by 7.9% this week.
Except for a small number of brokerage stocks such as Chinalin Securities Co.Ltd(002945) , Caida Securities Co.Ltd(600906) and so on, all other brokerage stocks fell to varying degrees without exception. It is worth noting that the stock prices of China International Capital Corporation Limited(601995) , Western Securities Co.Ltd(002673) have fallen by 10.48% and 10.32% respectively since this week.
Due to the continuous decline of stock prices, in order to maintain market stability and boost investment confidence, a number of securities companies recently issued announcements to appease investors.
On March 9, China Industrial Securities Co.Ltd(601377) took the lead in announcing that the share price of the company’s secondary market fluctuated to some extent, but at present, the company’s operation is normal and there are no matters that should be disclosed but not disclosed.
In addition, China Industrial Securities Co.Ltd(601377) also further stated its position, “In 2021, the company will actively seize the market opportunities, closely focus on the strategic goal of building a first-class securities finance group, and effectively improve its business performance and competitiveness of various businesses. The company will continue to operate steadily and standardize its operation, strive to improve its operation and management level, continuously improve its core competitiveness and profitability, and strive to create value for shareholders.”
Subsequently, Orient Securities Company Limited(600958) and China International Capital Corporation Limited(601995) also successively issued the voluntary announcement on recent business performance.
Orient Securities Company Limited(600958) said that the company’s operating performance increased significantly in 2021, and roe increased significantly, both reaching a new high since 2016; The effect of income balance transformation is outstanding, and the light and heavy asset businesses go hand in hand. The company’s asset management business, wealth management transformation, financial technology and investment banking business are developing normally. In the future, it will continue to do a good job in various operations, continuously improve the level of corporate governance and standardized operation, actively enhance core competitiveness, strive to improve roe level and company value, and strive to create better returns for investors.
China International Capital Corporation Limited(601995) said that in view of the closing price declines of the company’s A-Shares on March 7, March 8 and March 9, 2022 were 6.69%, 1.75% and 2.35% respectively, and the cumulative decline deviation value within three consecutive trading days was 5.14%. In order to maintain the stability of the capital market and effectively protect the legitimate rights and interests of investors, the company’s recent operating performance is hereby explained.
According to the third quarter report of 2021 disclosed by the company on October 29, 2021, the net profit attributable to the shareholders of the parent company and the net profit excluding non recurring profits and losses attributable to the shareholders of the parent company in the first three quarters of 2021 were RMB 7.454 billion and RMB 7.421 billion respectively, with a year-on-year increase of 52.39% and 60.3%. The company operated normally in the fourth quarter of 2021.
China International Capital Corporation Limited(601995) said that from January to February 2022, the company insisted on financial services for the real economy as the starting point, actively grasped the strategic development opportunity period of the securities industry, steadily promoted the implementation of the strategy, and continued to maintain a steady development momentum in all major businesses. The company has no other major events that may have a great impact on the company’s share price.
In fact, since last year, brokerage stocks have been “falling endlessly”, and there is a saying that the stock price “can not keep up” with the performance. Since the beginning of 2022, there have been 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 seen its share price rise by more than 10% this year, while the share prices of other securities companies have all fallen, of which China stock market news fell by 34.63% and Gf Securities Co.Ltd(000776) fell by 31.56%.
On February 26, the China Securities Association released the “report card” of the securities industry last year. According to statistics, 140 securities companies in the whole industry achieved a total operating revenue of 502410 billion yuan and a total 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. In terms of business, investment banking, proprietary business, brokerage business and asset management business all achieved growth, with an average growth scale of more than 10%.
So, when can undervalued brokerage stocks “carry the flag”?
Everbright Securities Company Limited(601788) believes that although from the perspective of recent market performance, due to 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, the market has paid significantly more attention to the securities sector with undervalued value. For example, northbound capital has allocated some leading securities companies for several weeks in a row, 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.
Soochow Securities Co.Ltd(601555) research report analyzes that the current fundamentals and policies of securities companies are in great contrast with the valuation, the profits of securities companies continue to reach a new high, and the relative roe is close to the level of the previous bull market (20152016), but its valuation is still at the bottom 1 / 4 of the historical valuation, which is optimistic about the long-term allocation value of securities companies.
