On March 11, the securities sector rose sharply during the session, with the closing increase of 3%, and all individual stocks rose, with a turnover of 32.55 billion yuan and a net inflow of 103.15 million yuan. Among them, Boc International (China) Co.Ltd(601696) , Chinalin Securities Co.Ltd(002945) performed strongly and both rose by the limit. The share price of China International Capital Corporation Limited(601995) also rose by more than 9%, followed by Zhongtai Securities Co.Ltd(600918) , Shanxi Securities Co.Ltd(002500) , Guosheng Financial Holding Inc(002670) by more than 5%.
Why are brokerage stocks suddenly carrying the flag today? A chief analyst of a securities firm said in an interview with the reporter of Securities Daily, "today, the funds going north continue to flow out, which should be the participation of leveraged funds or market protection funds."
securities companies' profitability continued to improve
As an important participant in the capital market, the profitability of the securities industry continues to improve and the capital strength continues to increase. According to the unaudited operation data of securities companies in 2021 released by China Securities Association, 140 securities companies in the industry realized an operating revenue of 502.41 billion yuan and a net profit of 191119 billion yuan, with a year-on-year increase of 12.03% and 21.32% respectively. At the same time, the reporter combed that the revenue and net profit of 19 listed securities companies that disclosed the performance express achieved double year-on-year growth last year.
However, the fundamentals of securities companies have improved, but the valuation has not been systematically improved. "Significant deviation between brokerage performance and valuation" has also become a hot topic in the current market.
From March 9 to March 10, a number of securities companies, including China International Capital Corporation Limited(601995) , China Industrial Securities Co.Ltd(601377) , Orient Securities Company Limited(600958) , Everbright Securities Company Limited(601788) and others, made brilliant achievements and spoke out to maintain the stability of the capital market.
China International Capital Corporation Limited(601995) made it clear that the operation was normal in the fourth quarter of 2021. From January to February this year, all major businesses continued to maintain a steady development momentum, and the company has no other major events that may have a great impact on the company's share price China Industrial Securities Co.Ltd(601377) also said that in view of the recent stock price fluctuations, at present, the company operates normally and there are no matters that should be disclosed but not disclosed Orient Securities Company Limited(600958) directly indicates that the operating performance of the company increased significantly in 2021, and the return on net assets increased significantly, both reaching a new high since 2016.
medium and long term investment value is more determined
Last year, the Shenwan secondary securities index fell by 4.21% in the year, and individual stocks with high wealth management business came out of the independent market. During the Gf Securities Co.Ltd(000776) , Orient Securities Company Limited(600958) period, the cumulative increase was 55.77% and 30.04%.
Since 2022, only Chinalin Securities Co.Ltd(002945) share price has risen, with a cumulative increase of 19.25% during the period, and all the other 40 stocks have fallen. Among them, the cumulative decline of China stock market news has exceeded 33%.
Boc International (China) Co.Ltd(601696) analyst Lin Yuanyuan said that the continuous and orderly promotion of the capital market reform policy and the continuous growth trend of residents' wealth management demand remain unchanged, and they continue to be optimistic about the growth of the securities industry. The decline in valuation is expected to bring layout opportunities.
On the one hand, the reform of the registration system is imminent, the supporting board transfer system is being supplemented, and the delisting system is expected to be gradually improved, so as to improve the marketization level of the capital market and bring more opportunities to the head investment banks with strong comprehensive ability and their direct investment and follow-up business. Market fluctuations will lead to significant differentiation of investment business, and the trading mode of head securities companies is expected to bring more stable performance. On the other hand, although market fluctuations may lead to a temporary decline in the scale of public fund management business and consignment business in the wealth management industry chain, residents' wealth continues to accumulate, the policy of "housing without speculation" is unswerving, and the growth trend of wealth management demand for maintaining and increasing residents' wealth remains unchanged, which can still contribute to the long-term growth of securities companies.
However, the chief of the above-mentioned securities companies also told reporters, "the past performance has no direct impact on the valuation of securities companies, and there is no 'mismatch', and the valuation is the feedback on the prediction of future performance. The Fed's interest rate increase is about to be implemented, and the stock index probability adjustment is the main. Securities companies are more sure of the medium and long-term investment value, and the short-term opportunities are relatively limited."
