Before the release of the annual report, the stock price plunged in advance. What is the situation?
At about 11 a.m. on April 15, Caida Securities Co.Ltd(600906) share price collapsed, with a drop of more than 9%. Shortly after the afternoon opening, the Caida Securities Co.Ltd(600906) share price officially “lay flat”, closing at 9.79 yuan / share on the same day, down 10.02% on the same day. Guolian Securities Co.Ltd(601456) , with Caida Securities Co.Ltd(600906) and Guolian Securities Co.Ltd(601456) , fell by 9.98% on the same day, driving the overall downward trend of the securities sector, and the “bull market flag bearer” is so bad?
On April 15, Caida Securities Co.Ltd(600906) released its 2021 annual report, which showed that it achieved an operating revenue of 2.524 billion yuan last year, a year-on-year increase of 23.15%; The net profit attributable to the parent company was 680 million yuan, with a year-on-year increase of 27.93%. The profit situation did not change much from the data disclosed in the early performance express.
It is noteworthy that Caida Securities Co.Ltd(600906) also disclosed the announcement of withdrawing the provision for asset impairment. In 2021, 936631 million yuan was withdrawn, more than 10% of the net profit in 2021. Among them, Caida Securities Co.Ltd(600906) stock pledge business is quite fierce, and the provision for impairment of financial assets purchased for resale is as high as 124 million yuan.
In addition to concerns about performance, Caida Securities Co.Ltd(600906) today’s sharp decline may be related to the upcoming lifting of the ban on a large number of shares. Data show that Caida Securities Co.Ltd(600906) will usher in the lifting of the ban of 77245 million shares on May 9, accounting for 23.80% of the total share capital.
2021 net profit increased by 27.93%
On April 15, Caida Securities Co.Ltd(600906) officially released its 2021 annual report after a sharp drop in share prices on that day.
According to the information of the annual report, Caida Securities Co.Ltd(600906) in 2021, the annual operating revenue reached 2.524 billion yuan, with a year-on-year increase of 23.15%; The net profit attributable to the parent company was 680 million yuan, a year-on-year increase of 27.93%; The basic earnings per share was 0.22 yuan, a year-on-year increase of 15.79%. In addition, Caida Securities Co.Ltd(600906) plans to distribute a cash dividend of RMB 1 (including tax) for every 10 shares.
Although Caida Securities Co.Ltd(600906) has achieved double growth in revenue and net profit in 2021, its growth rate is obviously unmatched by the “profitable” head securities companies. Even among a number of small and medium-sized securities companies, such performance growth is at a tepid level.
By sector, Caida Securities Co.Ltd(600906) brokerage business, investment banking business and asset management business achieved net income from handling fees of 754 million yuan, 276 million yuan and 423807 million yuan respectively, and the total net income from handling fees and commissions accounted for 43.45% of the revenue; The investment income was 844 million yuan, accounting for 33.42% of the revenue.
In addition, the Caida Securities Co.Ltd(600906) self operated sector achieved an operating revenue of 489 million yuan in 2021, an increase of 70.16% year-on-year, mainly due to the increase of 166 million yuan in the fair value of trading financial assets; The operating income of asset management business was 58 million yuan, a year-on-year increase of 57.02%, mainly due to the increase of income of 15.45 million yuan; The operating income of futures business was 444 million yuan, a year-on-year increase of 122.66%, mainly due to the increase of 232 million yuan in spot sales income engaged in basis trading.
In 2021, the total GDP of Hebei Province reached 4.04 trillion yuan, ranking 12th in China. However, the development of capital market in Hebei province lags behind. By the end of December 2021, the number of Listed Companies in Shanghai and Shenzhen stock markets was only 70, accounting for 1.47% in China, which is a huge gap compared with the developed provinces in the southeast. This will inevitably not encounter certain constraints for the exhibition industry of local securities companies.
As a regional brokerage, Caida Securities Co.Ltd(600906) still needs to face the problems of relatively single business model and regional concentration. By the end of 2021, Caida Securities Co.Ltd(600906) has set up 18 branches and 113 securities business departments in 13 provinces and municipalities directly under the central government, including 93 securities business departments in Hebei Province alone.
In terms of follow-up development strategy, Caida Securities Co.Ltd(600906) said that on the basis of consolidating the existing advantageous business, it would spare no effort to promote the transformation of brokerage business to wealth management, make a breakthrough, and comprehensively improve the company’s profitability and industry ranking.
provision for asset impairment erodes profits
It is noteworthy that on the evening of April 15, Caida Securities Co.Ltd(600906) also disclosed the announcement of withdrawing the provision for asset impairment. In 2021, 936631 million yuan was withdrawn, more than 10% of the net profit in 2021. The total profit of Caida Securities Co.Ltd(600906) current period decreased by 936631 million yuan and the net profit of current period decreased by 702473 million yuan.
Among them, the provision mainly focuses on the stock pledge business, and the provision for impairment of resale financial assets is as high as 124 million yuan.
As for the credit business of Caida Securities Co.Ltd(600906) , it said in its annual report that in 2021, it will continue to reduce the scale of stock pledge business and carry out stock pledge business prudently. In 2021, the accumulated interest income from stock pledge repurchase business was 670338 million yuan, a decrease of 60.20% over 1684174 million yuan in the previous year. At the end of 2021, the principal balance of stock pledge repurchase was 1.786 billion yuan, a decrease of 28.55% over 2.5 billion yuan of the previous year.
Caida Securities Co.Ltd(600906) said that the prevention and resolution of risks in its credit trading business is still the top priority. This year, under the leadership of the company’s credit risk disposal leading group, we should strengthen efforts to resolve stock risks, take multiple measures to recover debts, and minimize the company’s losses. We will strictly screen the underlying securities, strictly control the access of projects, prudently carry out stock pledge and two financing businesses, do a good job in dynamic adjustment and continuous customer management, and promote the steady and healthy development of credit business.
In terms of litigation, the annual report of Caida Securities Co.Ltd(600906) 2021 disclosed a total of eight litigation cases with an object of more than 10 million yuan and not yet known, all of which are related to pledged securities repurchase disputes, and many cases have entered the implementation stage. Among them, the defendants Shandong Yingda Steel Structure Co., Ltd., Kedi Food Group Co., Ltd. and other companies were in bankruptcy liquidation.
is about to usher in a large number of banned shares
As the only legal person securities company registered in Hebei Province, Caida Securities Co.Ltd(600906) was founded in April 2002, officially changed its name to Caida Securities Co.Ltd(600906) limited liability company in February 2010, and completed the joint-stock system in July 2016 to become Caida Securities Co.Ltd(600906) . In May 2021, Caida Securities Co.Ltd(600906) officially landed on the main board of Shanghai Stock Exchange, raising a total of 1.88 billion yuan.
According to the IPO practice, Caida Securities Co.Ltd(600906) listed on the first day, the issuance price was 3.76 yuan / share, with a daily increase of 43.88% to close at 5.41 yuan / share. Subsequently, Caida Securities Co.Ltd(600906) continuously pulled out 11 trading boards, and its share price reached a high of 18.7 yuan / share by June 2021.
However, after the high light moment in the early stage of listing, Caida Securities Co.Ltd(600906) ‘s share price began to “fall endlessly”. Data show that Caida Securities Co.Ltd(600906) share price has fallen by 23.28% since this year, and the closing price of 9.79 yuan / share hit a new low on April 15.
This month, some investors expressed dissatisfaction with the decline of Caitong Securities Co.Ltd(601108) share price on Shanghai e interactive platform. In this regard, Caitong Securities Co.Ltd(601108) replied that the fluctuation of share price in the secondary market will be affected by many factors, such as market trend, capital preference and so on. “The board of directors of the company will continue to lead the management to pay close attention to the operation and management, continuously enhance the comprehensive competitiveness, and better serve customers and economic development.”
In addition to the fear of substandard performance, Caida Securities Co.Ltd(600906) next month will usher in the massive lifting of the ban of 770 million shares, which also worries investors. Of course, lifting the ban on shares and reducing shareholders’ holdings are two different things, but some investors may sell in advance to avoid risks, which will also drive the stock price down.
Data show that Caida Securities Co.Ltd(600906) will usher in the lifting of the ban of 77245 million shares on May 9, accounting for 23.80% of the total share capital, which is the restricted shares of the original shareholders. In addition, in August this year, Caida Securities Co.Ltd(600906) there was a wavelet lifting the ban “on the road”, with a number of 40 million shares.
In addition, Caida Securities Co.Ltd(600906) fell to the limit today, perhaps partly due to the storm of “winning the lot and not abandoning the purchase” of Caitong Securities Co.Ltd(601108) yesterday. There are many investors who “can’t tell the difference” between the two securities companies. They denounced Caida Securities Co.Ltd(600906) Caida Securities Co.Ltd(600906) in the stock bar, which makes people laugh and laugh.
