Market performance:
In the current period (2022.3.282022.4.1), the non bank (Shenwan) index was + 3.56%, ranking 8 / 31 in the industry, the brokerage II index was + 3.92%, and the insurance II index was + 2.98%;
Shanghai Composite Index + 2.19%, Shenzhen Component Index + 1.29%, gem index + 1.10%.
The top five stocks in terms of rise and fall: Jingwei Textile Machinery Company Limited(000666) (+ 13.90%), Shenzhen Asia Link Technology Development Co.Ltd(002316) (+ 13.51%), Guoyuan Securities Company Limited(000728) (+ 10.75%), Boc International (China) Co.Ltd(601696) (+ 9.92%), Hainan Haide Capital Management Co.Ltd(000567) (+ 9.42%); The top five stocks rose or fell: ST Lvting (- 16.80%), ST easy to see (- 15.22%), Chinalin Securities Co.Ltd(002945) (- 11.51%), Anhui Xinli Finance Co.Ltd(600318) (- 8.16%), ST Xishui (- 7.30%).
Core view
Securities companies: as of April 1, a total of 36 securities companies have published annual reports or performance letters, and the head securities companies have basically published all their annual reports. The total operating income of 36 securities companies was 596773 billion yuan, a year-on-year increase of 22.97%, and the total net profit attributable to the parent company was 182074 billion yuan, a year-on-year increase of 30.66%. Among the 36 securities companies, only 3 have negative growth in net profit attributable to their parent companies, with overall outstanding performance and significantly improved profitability. Taking a closer look at the 27 securities companies that have disclosed the annual report of 2021, the highlights include the following:
1. The profitability has been significantly improved, with a total of nine parent companies with a net profit of more than 10 billion. Among the 27 listed securities companies, the operating income of 8 securities companies exceeded 30 billion yuan, an increase of China Galaxy Securities Co.Ltd(601881) , Shenwan Hongyuan Group Co.Ltd(000166) , Gf Securities Co.Ltd(000776) and China International Capital Corporation Limited(601995) 4 over the same period of last year. The net profit attributable to the parent company of 9 securities companies exceeded 10 billion, an increase of China Merchants Securities Co.Ltd(600999) , China Galaxy Securities Co.Ltd(601881) , China Securities Co.Ltd(601066) and China International Capital Corporation Limited(601995) . The weighted roe of net assets of 27 listed securities companies was 10.52%, with a year-on-year increase of 2.42pct. Among them, the number of securities companies with roe greater than 10% increased by 2 to 10, and the roe of China stock market news exceeded 20%.
2. Most securities companies have achieved high growth, and some small and medium-sized securities companies have outstanding growth ability. Among the 36 securities companies that announced their performance, a total of 23 securities companies had a parent net profit growth rate of more than 20%, with strong overall growth capacity. Among them, some small and medium-sized securities companies have outstanding growth ability Central China Securities Co.Ltd(601375) net profit attributable to parent company increased by 392.04% year-on-year, with Orient Securities Company Limited(600958) (+ 97.26%), China stock market news (+ 79.00%) and Founder Securities Co.Ltd(601901) (+ 66.19%) among the highest in the industry Citic Securities Company Limited(600030) as a leader in the industry, it has achieved an operating revenue of 76.5 billion yuan and a net profit attributable to the parent company of 23.1 billion yuan, which is much higher than that of other securities companies. Under this high base, it increased by 40.71% and 55.01% respectively year-on-year, and its leading position is stable.
3. The performance of wealth management has been significantly boosted. The total brokerage, investment banking, asset management, credit and proprietary businesses of 27 listed securities companies increased by 21.02%, 7.96%, 30.22%, 14.56% and 12.64% respectively year-on-year. In terms of wealth management business, based on the high market turnover in 2021, the securities trading business of securities dealers increased by more than 20%, and the growth of Zheshang Securities Co.Ltd(601878) , Orient Securities Company Limited(600958) , Tianfeng Securities Co.Ltd(601162) , Chinalin Securities Co.Ltd(002945) , China International Capital Corporation Limited(601995) increased by more than 30%. In addition, in 2021, the transformation of asset management business of securities companies achieved remarkable results, and the income of asset management business increased significantly. Among them, Guolian Securities Co.Ltd(601456) , China Industrial Securities Co.Ltd(601377) , Zhongtai Securities Co.Ltd(600918) , Gf Securities Co.Ltd(000776) increased by more than 50%, and Orient Securities Company Limited(600958) and Citic Securities Company Limited(600030) also increased by more than 40%. The big asset management dividend has been initially highlighted. Investment banking business brings differentiated competitive opportunities for small and medium-sized securities companies. The income of investment banking business of leading securities companies was basically stable, and Citic Securities Company Limited(600030) and China International Capital Corporation Limited(601995) performed prominently. The income scale of investment banking exceeded 8 billion and 7 billion respectively, with a growth rate of more than 18%. In 2021, the investment banking business income of some small and medium-sized securities companies achieved rapid growth, with Central China Securities Co.Ltd(601375) year-on-year growth of 207.56%, Guolian Securities Co.Ltd(601456) , Chinalin Securities Co.Ltd(002945) , Guoyuan Securities Company Limited(000728) increasing by more than 50%. The comprehensive registration system and the establishment of the Beijing stock exchange have significantly increased the income of investment banking business of small and medium-sized securities companies. The investment banking business of securities companies welcomes the opportunity period. The breakthrough of small and medium-sized securities companies in investment banking business also depends on their project reserves and whether they have differentiated competitive advantages in a certain field. The differentiation of proprietary business is significant. There is a 192.32% gap between the gains of securities companies with the highest and the lowest growth rate of investment income. The investment research ability of securities companies is more important during the continuous shock of the market. On the whole, the high growth of securities companies in 2021 is mainly based on the incremental income brought by high market trading volume. However, under the general trend of continuous compression of traditional channel business, the transformation of asset management business of securities companies and the important new of investment strength are gradually highlighted. They are optimistic about the leading securities companies with undervalued value and the securities companies with wealth management advantages for a long time, such as Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) , China stock market news, Gf Securities Co.Ltd(000776) , Orient Securities Company Limited(600958) , etc.
Insurance: on March 28, the CBRC released the operation of the insurance industry in February. From January to February this year, the insurance industry achieved a total original premium income of 1296.1 billion yuan, a year-on-year increase of – 2.03%, including 205437 billion yuan for property insurance, a year-on-year increase of + 9.83%, and 1090702 billion yuan for life insurance, a year-on-year increase of – 3.98%. In February, the original premium income was + 1.04% year-on-year, including – 0.91% year-on-year for life insurance and + 9.39% year-on-year for property insurance. Combined with the 2021 annual report released by listed insurance companies, the prosperity of property insurance has rebounded, and life insurance is still at a low ebb. In 2021, the personnel team of insurance companies shrank, the sales manpower continued to shrink, and the total number of agents decreased seriously. The total number of China Life Insurance Company Limited(601628) , The People’S Insurance Company (Group) Of China Limited(601319) , China Pacific Insurance (Group) Co.Ltd(601601) , New China Life Insurance Company Ltd(601336) , Ping An Insurance (Group) Company Of China Ltd(601318) employees decreased by – 0.86%, – 4.72%, – 3.55%, – 5.16% and – 1.67% respectively. Improving the quality of agents in the industry is the transformation core of improving the quality and efficiency of insurance companies. In terms of property insurance, the compensation ratio increased in 2021 due to the impact of major disasters and accidents such as rainstorm and typhoon and the comprehensive reform of vehicle insurance. At present, the comprehensive reform of vehicle insurance of head property insurance company has been basically completed, the coverage of traffic compulsory insurance and vehicle damage insurance has been expanded, and the quality of non vehicle insurance business has been improved. On the basis of having certain viscous customers, it is expected to take the lead in recovering. On the whole, both ends of the negative equity of the insurance sector are improving, and the valuation is at a low level, but the bottom building stage is not over yet. The inflection point needs to wait. It is suggested to pay attention to the structural market.
Risk tips: major changes in industry rules, increased external market risks, market fluctuations and repeated epidemics
