The 2021 annual report of listed securities companies is being released intensively.
On April 19, the annual report disclosed by Guosen Securities Co.Ltd(002736) showed that Guosen Securities Co.Ltd(002736) achieved an operating revenue of 23.818 billion yuan in 2021, an increase of 26.80% year-on-year; The net profit attributable to shareholders of listed companies was 10.115 billion yuan, a year-on-year increase of 52.89%.
It is noteworthy that, with the release of Guosen Securities Co.Ltd(002736) the annual report, the number of securities companies that successfully entered the “10 billion net profit club” in 2021 has reached 10, an increase of five over 2020. In addition to Guosen Securities Co.Ltd(002736) , the new securities companies also include China Merchants Securities Co.Ltd(600999) , China International Capital Corporation Limited(601995) , China Galaxy Securities Co.Ltd(601881) and China Securities Co.Ltd(601066) .
On the whole, the Shanghai and Shenzhen stock exchanges were active in 2021, leading to excellent performance of securities companies, and the performance of many companies rose again. However, some securities analysts believe that compared with overseas securities companies, the income structure of Chinese securities companies is still dominated by traditional businesses such as brokerage and proprietary business, and there is still a big gap between roe and overseas banks.
The 21st Century Business Herald reporter also found that “watching the day to eat” is still the characteristic of some securities companies after reading the annual reports of ten head securities companies. In 2021, the proprietary business of several leading securities companies increased significantly, such as Guosen Securities Co.Ltd(002736) investment and trading business, which achieved a total operating revenue of 7.416 billion yuan, a significant increase of 89.70% year-on-year China Galaxy Securities Co.Ltd(601881) self operated and other securities trading services realized an operating revenue of 5.038 billion yuan, an increase of 82.53% over 2020.
In response, Gf Securities Co.Ltd(000776) chairman Lin Chuanhui emphasized in the annual report that in the future, we will scientifically build the business structure, intensively cultivate advantageous businesses, strengthen the development of capital intermediary, wealth management and other businesses, and form a more reasonable, stable and sustainable income structure.
Guotai Junan Securities Co.Ltd(601211) chairman he Qing more clearly proposed to break the inertia of “relying on heaven”, accelerate the transformation from traditional securities companies to Xiandai Investment Co.Ltd(000900) banks, and build three core competence pillars: comprehensive service platform, leading digital technology and robust compliance culture.
large expansion of 10 billion net profit coupon merchants
As of April 20, the data showed that 37 of the 50 A-share listed securities companies had disclosed their 2021 transcripts.
Under the structural industry of the A-share market in 2021, the turnover of Shanghai and Shenzhen stock markets increased significantly, and the securities industry also continued to maintain a high growth in performance. Among them, the net profit of 10 listed securities companies exceeded 10 billion, double that of the same period in 2020.
Citic Securities Company Limited(600030) remains the leading position of securities companies. According to the annual report, 60 Hefei Lifeon Pharmaceutical Co.Ltd(003020) 21 achieved a revenue of 76.524 billion yuan, a year-on-year increase of 40.71%; The net profit was 22.979 billion yuan, a year-on-year increase of 55.01%, and the basic earnings per share was 1.77 yuan.
Guotai Junan Securities Co.Ltd(601211) ranked second, with total revenue and net profit of 42.669 billion yuan and 15.013 billion yuan respectively last year, with year-on-year growth of 21.22% and 34.98% respectively Eight securities companies, including Huatai Securities Co.Ltd(601688) , Haitong Securities Company Limited(600837) , China Merchants Securities Co.Ltd(600999) , Gf Securities Co.Ltd(000776) , China International Capital Corporation Limited(601995) , China Galaxy Securities Co.Ltd(601881) , China Securities Co.Ltd(601066) and Guosen Securities Co.Ltd(002736) , also had net profits attributable to their parent companies of more than 10 billion yuan last year.
With the homogenization of traditional business and intensified competition, wealth management business has become a new track in the securities industry. Many powerful head securities companies have achieved good results.
Last year, the revenue of Huatai Securities Co.Ltd(601688) wealth management business was 16.287 billion yuan, a year-on-year increase of 30.52%, 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.
“In the environment of capital market ecological transformation, wealth management and institutional business will be the medium and long-term high-quality track for securities companies.” Wu Pingping, a China Galaxy Securities Co.Ltd(601881) securities analyst, “China’s economy has turned to a high-quality development stage, residents’ wealth has accumulated rapidly, the scale of investable assets has increased rapidly, the transformation of asset allocation from physical assets to financial assets has accelerated, and the demand for equity asset allocation has increased. Secondly, supervision and guidance of institutional investors into the market, optimization of investor structure, improvement of the scale and proportion of professional institutional investors, and deepening the service of institutional investors are the focus of securities companies to build their core competitiveness.”
self operated business as revenue pillar
In recent years, proprietary business has become one of the most important sources of income for securities companies, and the performance of proprietary business of some securities companies is even better than that of brokerage business. This is reflected in the 2021 annual report of securities companies.
According to the data, the general standard “net income from investment + net income from changes in fair value + changes in fair value of financial assets available for sale” is used to measure the self operated business of various securities companies. The self operated business income of Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) , Huatai Securities Co.Ltd(601688) , Haitong Securities Company Limited(600837) , Guotai Junan Securities Co.Ltd(601211) and other securities companies in 2021 exceeded 10 billion yuan.
On April 19, the annual report disclosed by Guosen Securities Co.Ltd(002736) also showed that in 2021, Guosen Securities Co.Ltd(002736) achieved an operating revenue of 23.818 billion yuan, an increase of 26.80% year-on-year; The net profit attributable to shareholders of listed companies was 10.115 billion yuan, a year-on-year increase of 52.89%.
In terms of various main businesses, wealth management and self operation are Guosen Securities Co.Ltd(002736) main profit growth points.
In 2021, Guosen Securities Co.Ltd(002736) brokerage and wealth management business achieved an operating revenue of 10.769 billion yuan, an increase of 7.70% year-on-year; Investment banking business achieved an operating income of 2.066 billion yuan, an increase of 4.43% year-on-year; Investment and trading business achieved a total operating income of 7.416 billion yuan, a significant increase of 89.70% year-on-year; The operating income of asset management business was 542 million yuan, a year-on-year increase of 36.65%; Other businesses achieved a revenue of 3.025 billion yuan, a year-on-year increase of 20.99%.
The same is true of China Galaxy Securities Co.Ltd(601881) which broke the net profit threshold of 10 billion yuan for the first time. In 2021, the company achieved an operating revenue of 35.984 billion yuan, an increase of 51.52% year-on-year; The net profit attributable to shareholders of listed companies was 10.430 billion yuan, a year-on-year increase of 43.99%.
Specifically, in terms of business, during the reporting period, China Galaxy Securities Co.Ltd(601881) self operated and other securities trading services realized an operating revenue of 5.038 billion yuan, an increase of 82.53% over 2020.
However, both success and failure are small. With the change of market environment, proprietary business may become a drag on the performance of securities companies Soochow Securities Co.Ltd(601555) non bank analysts predict that the industry wide securities investment income (including changes in fair value) will decrease by 15% year-on-year to 25.8 billion yuan in the first quarter of this year.
