With the disclosure of the annual report of the first batch of listed securities companies in 2021, the performance profile has gradually emerged. The industry continues to perform the competition pattern of “strong and strong”, and nine leading securities companies have entered the “10 billion yuan club” of net profit. At the same time, some small and medium-sized securities companies have gradually opened up the situation and formed differentiated competitive advantages.
As of press time, 26 listed securities companies have disclosed the annual report of 2021, accounting for 63%, with different performance. The “big and strong” head securities companies still maintain stable growth in performance, and 9 listed securities companies have ranked among the “10 billion yuan club” in net profit; Among them, Citic Securities Company Limited(600030) with an operating income of 76.524 billion yuan and a net profit of 23.1 billion yuan, a year-on-year increase of 40.71% and 55.01% respectively 27billion yuan, 11.645 billion yuan, 10.854 billion yuan, 10.778 billion yuan, 10.43 billion yuan and 10.239 billion yuan. Compared with the previous year, the “ten billion yuan club” increased by China Merchants Securities Co.Ltd(600999) , China Galaxy Securities Co.Ltd(601881) , China Securities Co.Ltd(601066) , China International Capital Corporation Limited(601995) .
For the outstanding performance of the industry leader Citic Securities Company Limited(600030) in 2021, Guotai Junan Securities Co.Ltd(601211) non banking chief analyst Liu Xinqi said, “institutional business and wealth management industry chain revenue drive Citic Securities Company Limited(600030) last year’s performance to achieve high-speed and high-quality growth. After taking the lead in solving the capital bottleneck, the company will benefit from the growth of institutional customer demand caused by the process of institutionalization.”
In terms of performance growth, 24 of the 26 listed securities companies achieved double year-on-year growth in revenue and net profit last year. In terms of operating revenue, Guolian Securities Co.Ltd(601456) , Zheshang Securities Co.Ltd(601878) , China Galaxy Securities Co.Ltd(601881) , the year-on-year growth rate exceeded 50%. Among them, Guolian Securities Co.Ltd(601456) ranks first among listed securities companies with a year-on-year increase in revenue of 58.11%. In terms of net profit, the year-on-year growth of five securities companies including Central China Securities Co.Ltd(601375) , Orient Securities Company Limited(600958) , Founder Securities Co.Ltd(601901) , Citic Securities Company Limited(600030) , Guolian Securities Co.Ltd(601456) , etc. exceeded 50%. Among them, Central China Securities Co.Ltd(601375) ranks first temporarily with an increase of 392.04% Orient Securities Company Limited(600958) net profit increased by 97.26% year-on-year, following closely Founder Securities Co.Ltd(601901) ranks third temporarily with an increase of 66.19%. However, the net profit of First Capital Securities Co.Ltd(002797) , Chinalin Securities Co.Ltd(002945) decreased year on year.
Nowadays, many characteristic small and medium-sized securities companies are creating more surprises. In 2021, the operating revenue of Central China Securities Co.Ltd(601375) self operated business and investment banking business increased by 365.61% and 245.9% respectively year-on-year. Meanwhile, the asset management income of Boc International (China) Co.Ltd(601696) and the investment bank income of Zheshang Securities Co.Ltd(601878) , all hit record highs.
In this regard, Chen Mengjie, chief strategic analyst of YueKai Securities Research Institute, said in an interview with Securities Daily, “From the perspective of profit driving force, the direct reason for the high profit growth of securities companies in 2021 is mainly the gradual promotion of wealth management performance and the continuous development of the performance of brokerage and investment banking business. The ‘multiplier effect’ brought by the growth of wealth management scale has driven the continuous improvement of the business scale of securities companies; the brokerage and investment banking business has benefited from the high market boom, the reform of registration system, the establishment of Beijing stock exchange and other multi-level market construction, which has promoted the performance growth of securities companies Long. “
In 2021, the securities industry continued to promote the transformation of wealth management and continuously improved its ability to serve residents’ wealth management. Among them, the performance of listed securities companies continues to boost driven by wealth management and institutional business. Compared with traditional brokerage business, the stability and yield of wealth management business are higher.
In terms of highlights, wealth management has become a more important source of income for Citic Securities Company Limited(600030) in 2021. Its net income from brokerage business reached 13.96 billion yuan, an increase of 24% year-on-year, of which the income from selling financial products on a commission basis reached 2.655 billion yuan, an increase of 35.12% year-on-year. In 2021, Guotai Junan Securities Co.Ltd(601211) institutions, trading business and wealth management business increased by 51.15% and 10.64% respectively year-on-year, which was the main factor driving the growth of performance Founder Securities Co.Ltd(601901) investment advisory business has seen new growth points. In 2021, the revenue generated by online investment advisory business and asset allocation investment advisory products increased by 84% and 283% respectively year-on-year. In 2021, with the dual platform enabled, Huatai Securities Co.Ltd(601688) the wealth management business revenue reached 16.287 billion yuan, accounting for more than 40% of the total operating revenue. The total number of customers reached 20 million and the total assets of customers reached 5.4 trillion yuan. The business advantage was significant, and the number of institutional users increased by 50%.
