On March 30, China International Capital Corporation Limited(601995) ( China International Capital Corporation Limited(601995) . SH) officially released the 2021 annual report. In the face of complex economic and financial situation, China International Capital Corporation Limited(601995) will maintain a “steady and fast run” in 2021.
For the whole year of 2021, China International Capital Corporation Limited(601995) achieved an operating revenue of 30.131 billion yuan, a year-on-year increase of 27.35%; The net profit attributable to the parent company was 10.778 billion yuan, a year-on-year increase of 49.54%; The basic earnings per share of the company was 2.159 yuan, a year-on-year increase of 35.1%. In 2021, the weighted average roe of the company reached 14.64%, with a year-on-year increase of 1.1 percentage points, and continued to maintain the leading position in the industry.
The strong performance growth further consolidated China International Capital Corporation Limited(601995) securities companies’ leading position in the industry Gf Securities Co.Ltd(000776) the research team commented on the 2021 annual report that China International Capital Corporation Limited(601995) is an industry model of new breakthroughs in institutionalization and wealth management. “Under the development wave of industry headedness, internationalization and customer group institutionalization, the company’s many businesses are firmly in the forefront of the industry, with outstanding comprehensive advantages, and its efficiency and ability to use resources are ahead of the industry.”
institutional business leader has obvious advantages
According to the data of Shanghai Stock Exchange, from 2010 to 2020, the shareholding market value of professional institutional investors increased from 2.25 trillion to 6.74 trillion, with an average annual compound growth rate of 11.62%, and the shareholding proportion increased from 15.88% to 17.77%.
With overseas funds, social security funds, pensions and other funds entering the market one after another and adding residents’ savings funds to allocate equity assets, the trend of “institutionalization and internationalization” of China’s capital market becomes more and more obvious in 2021, and the market pricing power is further transferred to institutional investors.
In this situation, institutional businesses such as investment banking, trading services, derivatives and securities lending have become the key areas of competition in the securities industry. As China International Capital Corporation Limited(601995) pointed out in the 2021 annual report, “institutional business has stronger customer stickiness and concentration, and puts forward higher comprehensive requirements for business qualification, capital strength, scale advantage, product design, risk control system and institutional channel, which is the direction for head securities companies to steadily improve capital efficiency and long-term roe.”
In 2021, China International Capital Corporation Limited(601995) around the continuous capacity-building of “institutionalization”, “internationalization” and “productization”, institutional businesses such as investment banking, stocks, fixed income, asset management and private equity contributed 73% of the operating revenue.
As the “gold lettered signboard” of institutional business, China International Capital Corporation Limited(601995) the investment banking business continued to make rapid progress in 2021, and the proportion of business revenue (about 21%, totaling 6.295 billion yuan) was significantly higher than the industry average.
Complying with the promotion of the comprehensive registration system, China International Capital Corporation Limited(601995) continued to increase the IPO business coverage of the gem and the science and innovation board. As the lead underwriter, it completed 23 A-share IPO projects and 37 A-share refinancing projects. Both IPO projects and refinancing lead underwriter projects ranked second in the market.
In the field of large IPO projects that attracted the most attention of the capital market, CICC took the lead in completing A-share IPO projects including China Telecom Corporation Limited(601728) .
Compared with other Chinese securities companies, the strong overseas business has always been the leading point of China International Capital Corporation Limited(601995) . In 2021, China International Capital Corporation Limited(601995) as the sponsor, took the lead in underwriting 31 Hong Kong stock IPO projects and completed important projects such as ideal automobile and Ctrip, with a lead underwriting scale of US $5.981 billion, ranking second in the market. At the same time, CICC overcame the impact of changes in the international and market situation, and took the lead in underwriting eight US stock IPO projects of Chinese enterprises with the bookkeeper, with the lead underwriting scale of US $1.256 billion.
Stock business is another main battlefield for CICC to accelerate the “institutionalization”. In 2021, the stock business has developed into the profit growth engine of the company, and the operating profit increased by 2.98 billion yuan year-on-year, accounting for 70.47% of the growth of the company’s total operating profit.
China International Capital Corporation Limited(601995) in terms of stock business, we firmly implement the “three modernizations” (institutionalization, capitalization and internationalization) strategy to provide domestic and foreign institutional investors with one-stop comprehensive financial services such as “investment and research, sales, trading, products and cross-border”. Excellent institutional customer service ability and product creation ability are the core of CICC’s stock business to maintain a high growth year after year (the compound growth rate of operating revenue has reached 46% since 2018).
In 2021, the number of new accounts opened by China International Capital Corporation Limited(601995) institutional investors increased significantly, and the transaction volume and market share reached a new high; The customer coverage of QFII exceeds 55%, ranking first in the market for 18 consecutive years; The investment and research service ability of public offering and insurance customers has been continuously improved, ranking top in the market; Key private placement customers are fully covered, and foreign private placement (WFOE) ranks first in the market.
many institutions commented on China International Capital Corporation Limited(601995) 2021 annual report and pointed out that China International Capital Corporation Limited(601995) has continued to expand its advantages in the field of institutional business
According to the financial report data, the competitiveness of CICC’s Commission, derivatives and securities lending business increased significantly in 2021. In terms of institutional brokerage, the securities funds of CICC’s agency at the end of the period increased by 52% year-on-year, accounting for 59.4% of the securities funds of agency trading, with a year-on-year increase of 7.8 percentage points. In 2021, CICC realized institutional transaction commission of 1.18 billion yuan, which doubled (+ 114%) year-on-year, and the market share increased rapidly. In terms of equity derivatives business, the nominal principal scale of CICC at the end of the period increased by 44% year-on-year; Meanwhile, the securities lending business scale of CICC reached 11.3 billion yuan, a year-on-year increase of 34%, and the market share increased by 3.2 percentage points to 9.4%.
wealth management mode and scale leading
In 2021, the trend of “from physical to financial” asset allocation of Chinese residents continues, and it is time for financial institutions to develop wealth management and asset management business.
Facing the increasingly strong demand for wealth management of residents, the buyer’s investment consulting business has become the business focus of many institutions in 2021. Liang Dongqing, executive director and managing director of CICC wealth product solutions, pointed out that at present, the wealth management industry has entered the “3.0 era” and is undergoing a transformation from product centered to customer-centered.
CICC wealth’s concept of “customer-centered” is in line with the requirements of the new era in fact, CICC has long prospectively adjusted the direction of wealth management business, and continued to lead industry innovation in 2021, achieving strong performance improvement.
In 2021, CICC wealth product allocation business achieved leapfrog growth, and the platform’s ability to “keep long money” continued to strengthen. By the end of the year, the number of products had exceeded 300 billion, with a year-on-year increase of nearly 90%.
In the buyer’s investment advisory mode, CICC wealth launched “micro 50” after “China 50”, which is a leading low threshold configuration product in the securities industry, benefiting more wealth people.
by the end of the year, the charging assets of CICC wealth management buyers were nearly 80 billion yuan, a year-on-year increase of more than 180%, further establishing its leading position in the business model and scale of wealth management after continuously strengthening the construction of trading system, product linkage and customer operation, the market share of CICC trading business has increased to 2.24%.
In 2021, China International Capital Corporation Limited(601995) will continue to consolidate the foundation of full spectrum customer base and cover a wider customer base with Wuxi Online Offline Communication Information Technology Co.Ltd(300959) multi-channel. 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% year-on-year. The total assets of customer accounts reached 3 trillion yuan, a year-on-year increase of 16.2%.
Among them, in terms of high net worth individual customers with fierce competition from major institutions, the number of customers of CICC wealth was 34900, and the total value of customer account assets reached 820435 billion yuan, with a year-on-year increase of 36.2% and 22% respectively.
It is worth mentioning that China International Capital Corporation Limited(601995) will integrate 20 domestic business departments engaged in wealth management business into the subsidiary CICC wealth in 2021. Through business sinking and integration, China International Capital Corporation Limited(601995) will further deepen the specialization of wealth management.
Citic Securities Company Limited(600030) research team recently pointed out that with the gradual development of wealth management business represented by buyer’s investment adviser, China International Capital Corporation Limited(601995) is expected to continue to maintain its alpha attribute.
China International Capital Corporation Limited(601995) with the “two wheel drive” of efficient and collaborative institutional business and wealth management business close to customers, officially “run” into the era of 10 billion profits in 2021. In the annual report of 2021, China International Capital Corporation Limited(601995) CEO Huang Zhaohui specially emphasized that the core secret of CICC is to take talent strategy and cultural construction as the core of building a “century old store”, learn from international experience, establish an advanced talent selection and cultivation mechanism, and reserve excellent talents for the long-term sustainable development of the company.
