In the annual report season of securities companies, the performance of “three middle schools and one China” made the market look forward to. As of March 31, Citic Securities Company Limited(600030) ( Citic Securities Company Limited(600030) . SH), China International Capital Corporation Limited(601995) ( China International Capital Corporation Limited(601995) . SH), China Securities Co.Ltd(601066) ( China Securities Co.Ltd(601066) . SH), Huatai Securities Co.Ltd(601688) ( Huatai Securities Co.Ltd(601688) . SH) have been submitted.
In 2021, Citic Securities Company Limited(600030) continued to dominate the list, with annual revenue of 76.524 billion yuan Huatai Securities Co.Ltd(601688) 37.905 billion yuan, China International Capital Corporation Limited(601995) 30.131 billion yuan, and China Securities Co.Ltd(601066) 29.872 billion yuan. Last year, the net profit of the above four companies returned to the parent company exceeded 10 billion yuan, Citic Securities Company Limited(600030) was far ahead with 23.1 billion yuan, China Securities Co.Ltd(601066) was the “new face” in the 10 billion net profit team.
At the same time, the ranking of securities companies has also changed China Securities Co.Ltd(601066) after significantly outperforming China International Capital Corporation Limited(601995) in net profit in 2020, it was overtaken by CICC in 2021. In 2021, China Securities Co.Ltd(601066) realized a net profit attributable to the parent company of 10.239 billion yuan, lower than that of 10.778 billion yuan of CICC China Securities Co.Ltd(601066) net profit growth slowed down. In the previous two years, the annual net profit growth of the company was more than 70%, compared with 7.67% last year.
The performance, business development and strategic planning of leading securities companies are the wind vane of the layout of securities companies, and also reveal the transformation and changes of the securities industry. Last year, “three middle schools and one China” continued to develop investment banking and wealth management business.
net profit ranking changed
Continuing the pattern of the previous three years, in 2021, the ranking is still Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) , China International Capital Corporation Limited(601995) , China Securities Co.Ltd(601066) .
The revenue of the four securities companies all achieved positive growth of more than 20%. Citic Securities Company Limited(600030) once again showed strong growth momentum, and the revenue increased by more than 40% year-on-year.
In the revenue index of 2021, Citic Securities Company Limited(600030) topped the list with 76.524 billion yuan (+ 40.71%), followed by Huatai Securities Co.Ltd(601688) 37.905 billion yuan (+ 20.55%), and China International Capital Corporation Limited(601995) 30.131 billion yuan (+ 27.35%) and China Securities Co.Ltd(601066) 29.872 billion yuan (+ 27.93%) respectively.
The net profit index widened the gap. In 2021, the net profit attributable to the parent company ranked as follows: Citic Securities Company Limited(600030) ranked first with 23.1 billion yuan (+ 55.01%), followed by Huatai Securities Co.Ltd(601688) 13.346 billion yuan (+ 23.32%), China International Capital Corporation Limited(601995) ranked third with 10.778 billion yuan (+ 49.54%), while China Securities Co.Ltd(601066) received 10.239 billion yuan (+ 7.67%) ranked fourth.
In 2019 and 2020, China Securities Co.Ltd(601066) net profit increased by more than 70%, while the growth rate slowed significantly in 2021.
The performance competition between China Securities Co.Ltd(601066) and China International Capital Corporation Limited(601995) has also changed. In 2020, China Securities Co.Ltd(601066) realized a net profit of 9.509 billion yuan, outperforming CICC (7.207 billion yuan). In the first three quarters of last year, China Securities Co.Ltd(601066) parent net profit fell year-on-year, which was rare among leading securities companies, which once worried the market.
However, China Securities Co.Ltd(601066) revenue is approaching China International Capital Corporation Limited(601995) . In 2020, China Securities Co.Ltd(601066) revenue reached 23.315 billion yuan, approaching 23.66 billion yuan of China International Capital Corporation Limited(601995) . In 2021, China International Capital Corporation Limited(601995) total revenue was 30.131 billion yuan and China Securities Co.Ltd(601066) 29.872 billion yuan, with a gap of less than 300 million yuan.
investment banking and wealth management become highlights
Investment banking business and wealth management business are the advantageous businesses of the four securities companies.
In 2021, the reform of the main board of the investment bank and the Shenzhen Stock Exchange will continue, and the business of the small and medium-sized investment bank will be officially registered on the Shenzhen Stock Exchange.
In terms of IPO, CITIC and CICC achieved outstanding results.
According to the listing date, the top three in the total amount of A-share IPO last year were China Telecom Corporation Limited(601728) , China Three Gorges Renewables (Group) Co.Ltd(600905) , and Baiji Shenzhou. Of which, China Telecom Corporation Limited(601728) raised 47.904 billion yuan, which was jointly sponsored by China International Capital Corporation Limited(601995) , China Securities Co.Ltd(601066) China Three Gorges Renewables (Group) Co.Ltd(600905) sponsored by Citic Securities Company Limited(600030) and; Baiji Shenzhou is jointly sponsored by China International Capital Corporation Limited(601995) , Goldman Sachs and Gaohua.
Shanghai Rural Commercial Bank Co.Ltd(601825) , Everdisplay Optronics (Shanghai) Co.Ltd(688538) , Zhuzhou Crrc Times Electric Co.Ltd(688187) , Xinjiang Daqo New Energy Co.Ltd(688303) and other total fund-raising also entered the top ten of the year. Overall, among the top ten IPOs, Citic Securities Company Limited(600030) four independent sponsors, China International Capital Corporation Limited(601995) two independent sponsors and two co sponsors, China Securities Co.Ltd(601066) won one co sponsor.
In terms of investment banking revenue, in 2021, Citic Securities Company Limited(600030) investment banking net fee income was 8.156 billion yuan, a year-on-year increase of 18.52% China International Capital Corporation Limited(601995) was 7.036 billion yuan, with a year-on-year increase of 18.14% Huatai Securities Co.Ltd(601688) 4344 billion yuan, an increase of 19.22% year-on-year.
II. China Securities Co.Ltd(601066) was the only securities company with negative growth among the four companies. Last year, the net income of investment bank fees was 5.631 billion yuan, a year-on-year decrease of 3.85%.
Wealth management is also an area where leading securities companies focus on development.
The reporter found that Huatai Securities Co.Ltd(601688) , Citic Securities Company Limited(600030) and other wealth management businesses have made progress, and their contribution to the total revenue continues to increase.
In 2021, the revenue of Huatai Securities Co.Ltd(601688) wealth management business was 16.287 billion yuan, an increase of 30.52% year-on-year, accounting for more than 40% of the revenue, and the gross profit margin increased by 4.66 percentage points.
China International Capital Corporation Limited(601995) ‘s indicators such as the number of wealth management clients and buyer’s charging assets have increased.
Last year, the revenue of CICC wealth management business was 7.538 billion yuan, a year-on-year increase of 34.17%, and the operating profit margin increased by 4.18 percentage points.
By the end of last year, the paid assets of wealth management buyers were nearly 80 billion yuan, a significant increase of more than 180% year-on-year, further establishing the leading position in the business model and scale of wealth management.
The number of customer groups and high net worth customers continued to grow. By the end of the year, China International Capital Corporation Limited(601995) wealth management clients had reached 4.5351 million, an increase of 22.9% over the previous year, and the total assets of client accounts reached 3 trillion yuan, an increase of 16.2% over the previous year. Among them, the number of high net worth individual customers was 34900, an increase of 36.2% over the previous year, and the total value of account assets of high net worth individual customers reached 820435 billion yuan, an increase of 22% over the previous year.
Citic Securities Company Limited(600030) since the end of 2018, the transformation of wealth management has also made progress.
Citic Securities Company Limited(600030) said that in 2021, the proportion of the company’s wealth management revenue in the income of the wealth management sector has increased to 30%, while the traditional channel income such as the income from agency trading of securities business still maintained the growth of the market share. The income sources of wealth management are more diversified, which further enhances the stabilizer role of wealth management in the operation of the company.
According to the data of the annual report, the scale of customers has improved by leaps and bounds compared with that before the comprehensive transformation of wealth management at the end of 2018. By the end of last year, the number of customers had exceeded 12 million, and the asset scale of managed customers totaled 11 trillion yuan, an increase of 29% over the end of 2020. The holding scale of public and private funds exceeded 380 billion yuan, an increase of 26% over the end of 2020.
