As of April 12, a total of 31 listed securities companies have released the results of 2021.
Among them, a total of 25 listed securities companies achieved positive growth in revenue and net profit The 6 Fawer Automotive Parts Limited Company(000030) has been a tenbillion yuan, with a total net profit of more than 120 billion yuan.
In addition, Guosen Securities Co.Ltd(002736) it is estimated that the upper limit of net profit will also exceed 10 billion yuan, which is expected to join the “army of 10 billion yuan”.
At the same time, the dispute over the ranking of securities companies’ performance is also very anxious 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. For the whole year of 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, and now ranks ninth.
In terms of business, the growth of investment banking, wealth management, asset management and other businesses became the main driving force for the substantial growth of securities companies’ performance last year. Many other securities companies said that the asset impairment loss in 2021 was significantly lower than that in 2020, and also thickened the net profit.
Citic Securities Company Limited(600030) revenue dominates the list, with 8 securities companies exceeding 30 billion yuan
As of April 11, a total of 31 listed securities companies have disclosed the performance of 2021, of which 25 listed securities companies have achieved year-on-year growth in revenue and net profit.
In terms of revenue, Citic Securities Company Limited(600030) is far ahead, with a total operating revenue of 76.524 billion yuan in 2021, a year-on-year increase of 40.71% Haitong Securities Company Limited(600837) , Guotai Junan Securities Co.Ltd(601211) ranked second and third with 43.205 billion yuan and 42.817 billion yuan respectively.
Huatai Securities Co.Ltd(601688) (37.905 billion yuan), China Galaxy Securities Co.Ltd(601881) (35.984 billion yuan), Shenwan Hongyuan Group Co.Ltd(000166) (34.307 billion yuan), Gf Securities Co.Ltd(000776) (34.250 billion yuan), and China International Capital Corporation Limited(601995) (30.131 billion yuan) exceeded the 30 billion mark in revenue China Securities Co.Ltd(601066) (29.872 billion yuan) and China Merchants Securities Co.Ltd(600999) (29.429 billion yuan) ranked ninth and tenth respectively.
In terms of revenue growth, China stock market news (66.18%), Guolian Securities Co.Ltd(601456) (58.11%), Zheshang Securities Co.Ltd(601878) (54.36%), China Galaxy Securities Co.Ltd(601881) (51.52%) increased by more than 50%, ranking at the top of the list.
In addition, there are also other cities in addition to the ‘ Central China Securities Co.Ltd(601375) (21.22%), Hongta Securities Co.Ltd(601236) (20.57%), Huatai Securities Co.Ltd(601688) (20.55%) last year’s revenue growth exceeded 20%.
It is worth noting that in the context of such a hot investment environment, there are still Chinalin Securities Co.Ltd(002945) , Shanghai Chinafortune Co.Ltd(600621) and Guangdong Golden Dragon Development Inc(000712) revenue decreased year-on-year, with Guangdong Golden Dragon Development Inc(000712) falling by 40%, led by Chinalin Securities Co.Ltd(002945) and Shanghai Chinafortune Co.Ltd(600621) falling by 6.34% and 15.23% respectively.
9 securities companies have entered the club of net profit of 10 billion, and the growth rate of some companies has exceeded four times
Up to now, among the securities companies that have released their performance, a total of 9 have entered the “10 billion club” of net profit.
Among them, Citic Securities Company Limited(600030) net profit was 24.005 billion yuan, ranking first, and Guotai Junan Securities Co.Ltd(601211) (15.303 billion yuan) and Haitong Securities Company Limited(600837) (13.748 billion yuan) ranked second and third respectively.
\ is the “new face” in the 10 billion net profit team.
In addition, Guosen Securities Co.Ltd(002736) expects the upper limit of net profit to exceed 10 billion yuan and is expected to join the “army of 10 billion yuan”, which means that securities companies with a net profit of 10 billion yuan will share nearly 70% of the net profit.
In terms of net profit growth, Central China Securities Co.Ltd(601375) (439.59%), Orient Securities Company Limited(600958) (97.41%), China stock market news (79.00%), Founder Securities Co.Ltd(601901) (56.28%), Citic Securities Company Limited(600030) (54.71%), Guolian Securities Co.Ltd(601456) (51.16%) all grew by more than 50%.
It is worth noting that in 2019 and 2020, China Securities Co.Ltd(601066) net profit increased by more than 70%, while the growth rate slowed sharply in 2021, only 7.32%.
Meanwhile, the net profit growth of First Capital Securities Co.Ltd(002797) (- 8.29%), Huaxi Securities Co.Ltd(002926) (- 14.34%), Shanghai Chinafortune Co.Ltd(600621) (- 30.15%), Chinalin Securities Co.Ltd(002945) (- 40.46%), Guangzhou Yuexiu Financial Holdings Group Co.Ltd(000987) (- 46.25%), Guangdong Golden Dragon Development Inc(000712) (- 298.93%) declined in varying degrees.
The situation of “the strong is always strong” in investment banks continues, and Jackie Chan’s wealth management is the starting point for securities companies
Combing the performance in recent years, it is found that investment banking and wealth management business are the advantages of the first tier securities companies.
In 2021, the reform of the registration system was steadily promoted, the board of the Beijing stock exchange was officially opened, the main board of the Shenzhen Stock Exchange was merged with the small and medium-sized board, and the situation of “the strong is always strong” in the investment banking business continued.
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) independent sponsors 4, China International Capital Corporation Limited(601995) independent sponsors 2, Huatai Securities Co.Ltd(601688) sponsors 2, China Securities Co.Ltd(601066) co sponsors 1.
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.
China Securities Co.Ltd(601066) is the only securities company with negative growth among the four “three middle schools and one China”. Last year, the net fee income of investment banking 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 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. 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.
Last year, the number of customer groups and high net worth customers of head securities companies 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 the 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.
The scale of wealth management has been comprehensively improved compared with that before the end of 2018 annual report. 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.
organization: wealth management main line meets twists and turns and does not change the uncertainty of growth
Recently, A-Shares fluctuated widely, but institutions are still firmly optimistic about the brokerage sector.
China Post Securities believes that the undervalued value of the securities sector shows the allocation value. Recently, the average daily turnover of the two cities has reached trillion, which has become the norm, and the pressure on short-term brokerage business and wealth management business has been relieved. At the same time, the reform and innovation of the securities industry in recent years, such as fund investment adviser, new regulations on asset management and the implementation of comprehensive registration system, will greatly stabilize the performance fluctuation of the securities industry, and the short-term market fluctuation will not change the good momentum of the medium and long-term performance of the securities industry.
The broker believes that in the long run, the supporting logic of performance growth in the securities industry lies in: first, the performance increment brought by the transformation of brokerage business to wealth management mode. 2、 The performance increment contributed by the new market places bred by innovative business, such as the expansion of securities lending scale, the strong demand for derivatives business inside and outside the market, the exploration of securities settlement fund model and the popularity of the business model driven by “investment bank + investment” will raise the performance level of securities companies.
Cinda Securities believes that securities companies have high rebound certainty. The performance of securities business is growing steadily, the asset quality is improved, and the steady growth target may bring loose liquidity, which together form the driving force for the rise of the sector. From the performance of listed securities companies that have disclosed the performance express, the growth rate of net profit attributable to parent companies of more than 70% of securities companies is more than 20%, and half of them is more than 30%.
In 2021, the performance of securities business grew steadily under the high base of 2020, laying a solid foundation for the rise of the sector. At present, the valuation of securities companies still does not match the performance and asset quality, which is 2.5% away from PB2 61x valuation center still has a large space, so it is recommended to actively layout.
Cinda securities also said that when the issuance of new funds is cold, it will not change the sustainable development trend of wealth management, and grasp the main investment opportunities of investment banks under the comprehensive registration system. After the significant adjustment of wealth management characteristic securities companies, the cost performance gradually appears.
Huaxi Securities Co.Ltd(002926) non bank team believes that when the main line of wealth management encounters twists and turns, it will not change the certainty of growth. The overall price to book ratio of securities companies is 1.42 times, lower than the average level in 2020 and 2021. At the same time, the roe level of securities companies has increased steadily. The mismatch between sector valuation and performance growth brings left configuration opportunities.
Huaxi Securities Co.Ltd(002926) also said that the brokerage sector has strong beta attributes, so the liquidity, transaction activity and market sentiment of A-Shares will be magnified on the market of the sector. It is expected to be in the stage of wide liquidity to wide credit in the next 2-3 quarters. For investors who pay attention to the layout signal on the right side of the securities business sector, they can pay attention to three aspects: first, the transaction volume of Shanghai and Shenzhen stock markets has been enlarged to more than 1.4 trillion yuan; second, the daily transaction volume of the securities business sector (801193. SI) has been enlarged to 100 billion yuan; third, the securities lending scale of listed securities companies has shrunk rapidly.
