The annual report of A-share “bull market flag bearer” was disclosed.
On the evening of March 17, Sealand Securities Co.Ltd(000750) released the annual report of 2021, which is also the first annual report of 2021 released by A-share listed securities companies: the annual operating revenue of the company was 5.170 billion yuan, an increase of 15.36% year-on-year; The net profit attributable to the parent company was 765 million yuan, a year-on-year increase of 5.41%.
In addition to Sealand Securities Co.Ltd(000750) , as of March 17, 20 A-share listed securities companies have disclosed the 2021 performance express, another 4 have disclosed the performance forecast, and the net profit of 24 securities companies has increased over the same period of last year. In the view of institutions, the current valuation of securities companies still does not match their performance and asset quality. It is recommended to actively layout and grasp the main line of wealth management and industry leaders.
accelerate the transformation of wealth management
Sealand Securities Co.Ltd(000750) double increase in revenue and net profit in 2021
According to the annual report issued by Sealand Securities Co.Ltd(000750) released, the company achieved an operating revenue of 5.170 billion yuan in 2021, with a year-on-year increase of 15.36%; The net profit attributable to the parent company was 765 million yuan, a year-on-year increase of 5.41%. By the end of 2021, Sealand Securities Co.Ltd(000750) total assets totaled 75.868 billion yuan, including 18.565 billion yuan of net assets attributable to shareholders of listed companies.
Source: Sealand Securities Co.Ltd(000750) Annual Report
In 2021, Sealand Securities Co.Ltd(000750) accelerated the transformation of wealth management, and its retail wealth management business revenue increased to 1.234 billion yuan, with a year-on-year increase of 15.62%, accounting for 23.87% of operating revenue, second only to investment management business. In terms of subdivisions, Sealand Securities Co.Ltd(000750) 2021, the securities brokerage business achieved an operating revenue of 629 million yuan, an increase of 6.43% year-on-year; The sales scale of securities investment funds increased by 141.38% year-on-year, and the agency sales revenue increased by 64.24% year-on-year.
In 2021, the new regulations on asset management were officially implemented, and the public offering process of asset management products of securities companies continued to accelerate. For Sealand Securities Co.Ltd(000750) speaking, the company’s asset management business also actively transformed in 2021, exploring innovative products and models, creating star products and improving the layout of all asset product system. By the end of 2021, Sealand Securities Co.Ltd(000750) had managed 170 collective plans, 45 single plans (or targeted products) and 15 special plans, with a entrusted asset management scale of 70.158 billion yuan.
For the development of the securities industry, Sealand Securities Co.Ltd(000750) believes that under the background of the continuous deepening of capital market reform, equity and institutionalization will be the two major trends of the development of the industry, and the continuous expansion of supply side and demand side will bring changes and opportunities to the institutional business of securities companies. For medium-sized securities companies, the way to break the situation is to create professional and high-quality products and form differentiated competitive advantages.
performance report of 24 securities companies in 2021
As of March 17, 20 A-share listed securities companies have disclosed the 2021 performance express, another 4 have disclosed the performance forecast, and the net profits of 24 securities companies have increased over the same period of last year.
The net profit of the above-mentioned securities companies reached rmb2.079 billion and rmb2.025 billion respectively, ranking the first in the industry, with a year-on-year increase of rmb2.079 billion and rmb2.025 billion respectively. In the performance express, Citic Securities Company Limited(600030) said that in 2021, China’s economy overcame the impact of the epidemic and continued to improve, and the capital market developed vigorously. In 2021, the company’s investment banking, asset management and other businesses developed in a balanced and steady manner.
The net profit attributable to parent companies of Guotai Junan Securities Co.Ltd(601211) , China Merchants Securities Co.Ltd(600999) , China Galaxy Securities Co.Ltd(601881) 3 securities companies in 2021 was also more than 10 billion yuan, reaching 15.013 billion yuan, 11.613 billion yuan and 10.349 billion yuan respectively, with a year-on-year increase of more than 20% 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, with an increase of 59%.
Among the leading securities companies, Orient Securities Company Limited(600958) 2021 achieved a net profit attributable to the parent company of 5.372 billion yuan, with a year-on-year increase of 97.27%. Among the small and medium-sized securities companies, the net profit attributable to the parent company in Central China Securities Co.Ltd(601375) 2021 increased by 385.57% year-on-year, but its profit scale was small, totaling 506 million yuan The Pacific Securities Co.Ltd(601099) securities’ net profit attributable to the parent company in 2021 turned loss into profit on a year-on-year basis.
It is found that the improvement of macro-economy and the vigorous development of capital market are the main driving factors for the performance growth of most securities companies in 2021. The data show that in 2021, the Shanghai index, Shenzhen Composite Index and gem index closed up for the third consecutive year, and the cumulative turnover of A-Shares in the whole year was 257.18 trillion yuan, a year-on-year increase of 24.82%. From the perspective of business segments, investment banking business, institutional business, asset management business and other businesses contribute more to the performance of listed securities companies in 2021. Another brokerage disclosed in the announcement that the decrease in asset impairment loss in 2021 compared with the previous year is also an important reason for its performance growth.
focus on the main line of wealth management and leading target
Since 2022, the A-share market has continued to callback, but just this week, the market has experienced a strong reversal. The three major stock indexes rebounded collectively on March 16 and 17, and the market of securities companies has also significantly warmed up.
According to the data, on March 16, the brokerage index rose 6.39%, the highest daily increase in the past seven months, Boc International (China) Co.Ltd(601696) , Chinalin Securities Co.Ltd(002945) rose again, China International Capital Corporation Limited(601995) rose more than 7%, and Citic Securities Company Limited(600030) rose more than 6%; On the 17th, the index rose and fell, and finally closed down by 0.17%, Guosheng Financial Holding Inc(002670) rose the limit for the second consecutive trading day, Polaris Bay Group Co.Ltd(600155) , China stock market news, etc.
Cinda Securities believes that the performance of securities business in 2021 will grow steadily under the high base in 2020. It is expected that the net profit growth of most listed securities companies will exceed 30%, laying a solid foundation for the rise of the sector. The two sessions set the tone to stabilize growth, the reduction of reserve requirements and interest rates is worth looking forward to, and loose liquidity will become the catalyst for the rise of the sector. At present, the valuation of securities companies still does not match the performance and asset quality, so it is recommended to make a positive layout. Under the comprehensive registration system, grasp the main investment opportunities of investment banks.
In the view of open source securities, under the background of the decline in the proportion of brokerage business income of traditional securities companies and the reduction in the allocation of self operated stocks, the overall beta attribute of the securities sector is gradually weakened, and the big wealth management track or the strongest beta variety of securities companies. For the allocation of securities companies, we should first promote the target of big wealth management track, and be optimistic about the leading target of undervalued value.
On March 17, CSDCC announced that in order to reduce the cost of market funds, CSDCC cooperated with the ongoing DVP reform and reduced the payment proportion of the minimum settlement provision for stock business from 18% to 16% from April 2022. At the same time, since April 2022, CSDCC has reduced and exempted some registration and settlement fees, such as the share and securities registration fee of two networks and delisting companies, the non trading transfer fee of B shares and bonds, and the handling fee of dividend distribution of closed-end funds.
Insiders interpreted this as a disguised “RRR reduction” of securities business. It is estimated that after this adjustment, the settlement provision can be reduced by about 20 billion yuan, and the reduction and fee reduction can be realized by about 280 million yuan.
