Recently, listed companies have shown last year’s “report card”, and the performance of futures companies has gradually surfaced. According to incomplete statistics by the reporter of futures daily, as of April 2, the performance of 34 futures companies had been released, including 2 A-share listed companies, 2 H-share listed companies, 2 new third board listed companies and 28 futures companies controlled or participated by A-share listed companies. According to the reporter’s statistics, 34 futures companies achieved a total net profit of about 9.3 billion yuan last year, of which 21 companies had a net profit of more than 100 million yuan, and many companies achieved the best performance in history.
What is the “password” for the performance growth of futures companies? What are the future directions?
head company’s performance explodes
In 2021, China’s futures industry continued its rapid growth momentum since 2020, with operating revenue and net profit reaching a record high. According to the data of the interim Association, based on the caliber of the parent company, in 2021, 150 futures companies across the country achieved a total operating revenue of 49.464 billion yuan, a year-on-year increase of 40.34%; The net profit was 13.705 billion yuan, a year-on-year increase of 59.30%.
The reporter combed the annual report and found that the performance of head futures companies was bright last year, and the growth rate of net profit of many companies was significantly higher than the industry average.
In terms of revenue, a total of 31 futures companies disclosed the revenue data of last year, of which 6 companies reached a new level of 10 billion yuan, including Galaxy futures, CITIC futures, Guotai Junan Securities Co.Ltd(601211) futures, Zheshang futures, Nanhua Futures Co.Ltd(603093) and Dongzheng futures, with revenue of 15.119 billion yuan, 15.099 billion yuan, 11.298 billion yuan, 10.518 billion yuan, 10.515 billion yuan and 10.030 billion yuan respectively.
In terms of revenue growth, among the 30 companies with comparable data, 5 companies increased their revenue by more than 100% last year China Securities Co.Ltd(601066) futures revenue grew by 331.28%, ranking first temporarily. The revenue growth of COFCO futures, Guoyuan futures, Shenzhen Zhongjin Lingnan Nonfemet Co.Ltd(000060) futures and Galaxy futures also exceeded 100%, with growth rates of 212.18%, 173.96%, 145.30% and 109.14% respectively.
In terms of net profit, six companies made a net profit of more than 500 million yuan last year. Although the annual reports of listed companies have not been disclosed, it is a foregone conclusion that the camp of listed companies with a net profit of more than 500 million yuan will expand significantly. In 2020, only Yongan futures and CITIC futures had net profits of more than 500 million yuan, with net profits of 1.146 billion yuan and 648 million yuan respectively.
Specifically, CITIC futures achieved a net profit of 992 million yuan last year, approaching the threshold of 1 billion yuan, a year-on-year increase of 53.24%. In addition, the net profits of Galaxy futures, Guotai Junan Securities Co.Ltd(601211) futures, Dongzheng futures, China Securities Co.Ltd(601066) futures, Ruida Futures Co.Ltd(002961) futures and Ruida Futures Co.Ltd(002961) futures also exceeded 500 million yuan, which were 766 million yuan, 743 million yuan, 592 million yuan, 559 million yuan and 504 million yuan respectively.
There are 15 companies with a net profit of 100500 million yuan, including SDIC Anxin futures, Haitong futures, GF futures, Shenyin Wanguo futures, China Merchants futures, Huatai futures, Everbright futures, Zheshang futures, COFCO futures, founder medium-term futures, Xingzheng futures, Nanhua Futures Co.Ltd(603093) , LUZHENG futures, Hongyuan futures and Hua’an futures. The net profit is 431 million yuan, 403 million yuan, 402 million yuan, 382 million yuan, 374 million yuan and 368 million yuan respectively 340 million yuan, 300 million yuan, 281 million yuan, 272 million yuan, 247 million yuan, 244 million yuan, 204 million yuan, 183 million yuan and 115 million yuan.
The reporter noted that compared with 2020, there are three new faces in the futures companies with a net profit of more than 100 million yuan in 2021, including Nanhua Futures Co.Ltd(603093) , LUZHENG futures and Hua’an futures.
From the perspective of net profit growth, among the 33 companies with comparable data, 12 had net profit growth of more than 100% last year. The growth rate of futures in Guangzhou was 449.9%, followed by the growth rate of futures in Guangzhou, with a net profit of 259.56%. In addition, the net profit growth of CCB futures, Dongzheng futures, Nanhua Futures Co.Ltd(603093) , Hua’an futures, China Securities Co.Ltd(601066) futures, Galaxy futures, Everbright futures, Xingzheng futures, Ruida Futures Co.Ltd(002961) , Guotai Junan Securities Co.Ltd(601211) futures also exceeded 100%, 233.33%, 208.67%, 158.67%, 149.98%, 121.59%, 112.35%, 108.59%, 104.20%, 102.51% and 100.81% respectively.
Why did the performance of Guangzhou futures rise sharply Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987) annual report shows that during the reporting period, Guangzhou futures increased business expansion and continuously innovated service mode. The equity scale, growth rate and market share of brokerage business continued to improve, and the institutional transformation achieved remarkable results. At the end of the period, the customer’s equity was 4.912 billion yuan, a year-on-year increase of 98.54%, higher than the level of the industry and jurisdiction. The asset management business has basically completed the establishment of product system, implemented fixed income products and CTA products, and accelerated the promotion of self-management products. The business varieties of risk management subsidiaries have gradually matured, and the ability to grasp the market opportunities of advantageous varieties has been further enhanced. The derivatives business has gradually achieved diversified business development, with an annual operating revenue of 6.313 billion yuan, a year-on-year increase of 69.92%.
It is worth noting that Yongan futures, a leading company in the industry, has not disclosed its annual report. In recent years, the revenue and net profit of Yong’an futures have always ranked first in the industry. In the IPO announcement released on December 22 last year, Yong’an futures said that the company is expected to achieve an operating revenue of 36.824 billion yuan and a net profit of 1.152 billion yuan attributable to the shareholders of the parent company in 2021, mainly due to the steady development of the company’s futures brokerage business and the continuous growth of the scale of risk management business. If the performance forecast comes true, the revenue of Yong’an futures will reach a new level, and the net profit will remain above 1 billion yuan for three consecutive years.
brokerage business increased significantly
In 2021, the market fluctuated violently, the demand of various investors for risk management and investment continued to highlight, and the transaction scale of the futures market and the rights and interests of customers reached a record high. According to unilateral calculation, the trading volume of China’s futures market reached 7.514 billion in 2021, with a year-on-year increase of 22.13%; The turnover was 581.20 trillion yuan, a year-on-year increase of 32.84%. By the end of December 2021, the customer equity of national futures companies was 1184734 billion yuan, a year-on-year increase of 43.65%. At the end of October 2021, the customer rights and interests of futures companies across the country once exceeded 1.2 trillion yuan, reaching 1215375 billion yuan, the highest level in history.
Driven by the substantial growth of trading volume, the brokerage business scale of futures companies has increased significantly, and the rights and interests of customers have also reached a new high Ruida Futures Co.Ltd(002961) annual report shows that during the reporting period, the company’s futures brokerage business achieved an operating revenue of 1.100 billion yuan, an increase of 83.64% year-on-year. During the reporting period, the company’s parent company added 18948 customers, including 373 institutional customers; The company’s customer margin increased to 13.905 billion yuan, including 9.998 billion yuan for institutional customers, accounting for 71.90% of the company’s customer margin.
the Nanhua Futures Co.Ltd(603093) annual report shows that in 2021, the operating income of the company’s futures brokerage business was 653 million yuan, a year-on-year increase of 43.84% Nanhua Futures Co.Ltd(603093) said that as one of the company’s main businesses, during the reporting period, the company adhered to the advanced service concept and active business development strategy, and steadily increased the overall brokerage business scale of the company. At the end of the period, the customer equity scale of futures brokerage business was 20.898 billion yuan, a year-on-year increase of 39.99%; In the whole year, more than 10000 new futures accounts were opened, with a year-on-year increase of 7.87%.
As a traditional business, futures brokerage business is characterized by homogeneous competition, Nanhua Futures Co.Ltd(603093) said that the company has innovated its business model and improved its comprehensive service capability through years of transformation and development. On the one hand, the company further strengthened the competitiveness of outlets in key areas and appropriately tilted the company’s resources, thus achieving remarkable results in institutional business development; On the other hand, the company vigorously promotes the linkage of wealth management business, risk management business and brokerage business, and improves the company’s ability to develop customers.
Orient Securities Company Limited(600958) annual report shows that in the face of the rapidly expanding market scale, Dongzheng futures seized the opportunity, achieved breakthrough growth in the overall performance in 2021, and the revenue and profit were significantly higher than the historical average level of the company. At present, Dongzheng futures has formed core advantages such as comprehensive business lines, rich institutional service experience, research and technical ability and industry leadership. By the end of the reporting period, the scale of customer equity was 65.461 billion yuan, an increase of 61% over the beginning of the period, ranking the third in China; More than 1800 new institutions and products opened accounts, and the new coverage of each business line increased in an orderly manner. During the reporting period, the company ranked first in the industry according to the whole market share of trading volume.
The annual report of LUZHENG futures shows that during the reporting period, the company’s brokerage business income, customer rights and interests, transaction amount and other major business indicators continued to rise. Among them, the brokerage business income was 574 million yuan, a year-on-year increase of 64.12%. The company’s futures client equity at the end of the period was 16.958 billion yuan, a year-on-year increase of 67.82%; The customer equity of stock option business (including stocks) at the end of the period was RMB 727 million, with a year-on-year increase of 92.84%.
innovative business multi-point flowering
While the brokerage business is growing rapidly, innovative businesses such as risk management business are also performing satisfactorily. According to the data of the interim Association, in 2021, China futures companies realized a total income of 176 million yuan from investment consulting business, a year-on-year increase of 39.68%; The income from asset management business was 1.214 billion yuan, a year-on-year increase of 35.34%; The business income of risk management companies of futures companies was 262859 billion yuan, a year-on-year increase of 26%.
the Nanhua Futures Co.Ltd(603093) annual report shows that in 2021, the company’s risk management business increased significantly, and Nanhua capital realized a net profit of 720618 million yuan, an increase of 648384 million yuan compared with 2020, mainly due to the expansion of the scale of its OTC derivatives business.
Looking forward to 2022, Nanhua Futures Co.Ltd(603093) said that under the situation of increasing macro environmental uncertainty, the demand for risk management of entities, enterprises and institutions will further increase. The company will seize this development trend, continuously improve the professional ability of risk management business, promote the innovative development of basis trade, OTC derivatives and market making, expand the scope of services and continuously improve the ability to serve the real economy.
Sdic Capital Co.Ltd(600061) annual report shows that in 2021, the risk management subsidiary of SDIC Anxin futures focused on building the advantages of future business team, establishing operation center, promoting the output of derivatives strategy, completing the independent design and sales of standardized products, and meeting the needs of customers for risk hedging through OTC options. At the same time, the subsidiary consolidated its market making business, vigorously developed its off-site business, actively promoted its current business, and achieved a major breakthrough in its operating performance. During the reporting period, the futures subsidiary achieved a net profit of 477985 million yuan, a year-on-year increase of 1310%.
Ruida Futures Co.Ltd(002961) annual report shows that in 2021, the company’s asset management business achieved an operating revenue of 141 million yuan, a year-on-year increase of 43.19%. In the face of changes in industrial policies and market environment, the company adheres to the product driven strategy, explores and establishes more scientific, systematic and comprehensive high-quality products from the perspective of customer demand, and enriches the types of asset management products. The asset management scale increased from RMB 2.120 billion at the beginning of 2021 to RMB 4.266 billion at the end of 2021, with an increase of 101.22%.
For the future development of asset management business, Ruida Futures Co.Ltd(002961) said that the company strives to be the leader of CTA (managed futures), and takes the newly opened public fund as an opportunity to implement the business strategy of “two ends going hand in hand” and coordinated development of public offering and private placement business. Seize market opportunities, vigorously develop all kinds of products focusing on active management, and constantly improve product sales and trading capacity.
