Main contents
In 2021, the performance of the securities industry grew steadily, and the competitiveness of leading securities companies continued to increase. Under the expectation of steady growth, the reform of capital market has been strengthened, which has become a catalyst for the market of securities companies. At present, the valuation of Pb of securities companies is 1.46 times, which is in the historical quantile of 7.62%, with a high margin of safety. We maintain the “over allocation” rating of the industry.
The market volume rose and the scale of IPO fund-raising expanded
(1) in terms of brokerage business, the average daily turnover of A-Shares in March was 1014658 billion yuan, an increase of 7.94% month on month and 25.97% year-on-year. (2) In terms of investment banking, the number of IPOs in March was 37, and the scale of funds raised was 50 billion yuan, an increase of 142.14% month on month; In March, the refinancing scale was 76.3 billion yuan, an increase of 36.65% month on month; The underwriting scale of corporate bonds and corporate bonds was 347.1 billion yuan, an increase of 169.33% month on month. (3) In terms of proprietary business, stocks and bonds rose and fell in March. The Shanghai Composite Index fell 2.43%, the Shanghai and Shenzhen 300 index fell 7.84%, the gem index fell 7.70%, and the China Securities all bond index rose 0.08%. (4) From the balance of the two financial institutions reflecting market risk appetite and activity, the average balance of the two financial institutions in March was RMB 169.86 billion, down 1.55% month on month.
The overall performance of the securities industry has grown steadily, and the competitiveness of leading securities companies has been continuously enhanced
From the perspective of securities companies that have published their annual reports in 2021, on the one hand, the overall performance of securities companies has maintained growth and the profitability has improved steadily; On the other hand, the overall competition pattern of the securities industry is relatively stable, and the competitiveness of the head securities companies is increasing. In terms of overall performance, Citic Securities Company Limited(600030) is still in a stable leading position, with operating revenue and net profit attributable to parent company ranking first in the industry, and maintained a high growth rate on the basis of last year’s high base Haitong Securities Company Limited(600837) (RMB 43.205 billion), the operating income of Guotai Junan Securities Co.Ltd(601211) (RMB 42.817 billion) ranked second and third, and the net profit attributable to parent company of Guotai Junan Securities Co.Ltd(601211) (RMB 15.013 billion) and Huatai Securities Co.Ltd(601688) (RMB 13.346 billion) ranked second and third.
Investment advice
Under the expectation of steady growth, the reform of capital market has been strengthened, which has become a catalyst for the market of securities companies. At present, the valuation of Pb of securities companies is 1.46 times, which is in the historical quantile of 7.62%, with a high margin of safety. With the promotion of capital market reform and the growth of residents’ demand for wealth management, securities companies usher in new opportunities for development. Under the background of capital market reform, leading securities companies have advantages in capital strength, risk management ability, research pricing ability and business layout. It is suggested to pay attention to leading securities companies Citic Securities Company Limited(600030) , Huatai Securities Co.Ltd(601688) ; In addition, it is also suggested to pay attention to China stock market news, a model of Internet brokerage with unique track, and Guolian Securities Co.Ltd(601456) .
The risk suggests that the decline of the market will bring uncertainty to the performance and valuation repair of securities business; Stricter financial supervision; Intensified market competition; The promotion of innovation is less than expected.
