On April 24, China Merchants Securities Co.Ltd(600999) released the report for the first quarter of 2022, which showed that China Merchants Securities Co.Ltd(600999) achieved an operating revenue of 3.696 billion yuan and a net profit of 1.490 billion yuan in the first quarter of this year, a year-on-year decrease of about 38% and 43% respectively China Merchants Securities Co.Ltd(600999) said that in the first quarter of 2022, the market volatility was intensified, the epidemic situation was still severe, the company’s business activities were facing challenges and its performance was under pressure.
The reporter of the daily economic news found that in the first quarter of this year, China Merchants Securities Co.Ltd(600999) except for the year-on-year growth of investment banking business income, other business income fell to varying degrees, among which the self operated income fell sharply, down about 91% year-on-year. In addition, the net interest income decreased by about 63% year-on-year. Meanwhile, credit impairment losses nearly doubled.
only investment bank revenue increased year-on-year
Today, China Merchants Securities Co.Ltd(600999) released the report for the first quarter of 2022, which showed that China Merchants Securities Co.Ltd(600999) achieved an operating revenue of 3.696 billion yuan and a net profit attributable to shareholders of listed companies of 1.490 billion yuan in the first quarter of this year, down 38.01% and 42.99% respectively year on year;; The basic earnings per share was 0.15 yuan, a year-on-year decrease of 46.43%;; The weighted average return on net assets was 1.36%, a year-on-year decrease of 1.27 percentage points.
China Merchants Securities Co.Ltd(600999) frankly, in the first quarter of 2022, the market volatility intensified, the epidemic situation was still severe, the company’s business activities faced challenges and its performance was under pressure.
The reporter further combed and found that in terms of business income, in the first quarter of this year, China Merchants Securities Co.Ltd(600999) brokerage business income was 1.649 billion yuan, investment banking business income was 449 million yuan, asset management business income was 207 million yuan, credit business income (net interest income) was 188 million yuan, and self operated business income (caliber: investment income – investment income to associates and joint ventures + income from changes in fair value) was 176 million yuan. In addition, other business income was 304 million yuan.
However, from the perspective of changes, except for investment banking business income, other business income fell year-on-year. In the first quarter of this year, the income of investment banks increased by 8.66% year-on-year. According to the statistics, the total amount of China Merchants Securities Co.Ltd(600999) underwriting (equity + creditor’s rights) in the first quarter of this year reached 82.424 billion yuan, ranking eighth in the industry according to the issuance date; Among them, the underwriting amount of equity projects was 18.536 billion yuan, ranking sixth in the industry.
In January this year, Yidong Electronics was successfully listed on the gem, raising a total of 2.174 billion yuan, China Merchants Securities Co.Ltd(600999) as the sponsor and lead underwriter. The total issuance cost of Yidong electronics is 203 million yuan, and the issuance rate is about 9.34%. China Merchants Securities Co.Ltd(600999) can obtain recommendation and underwriting income of about 179 million yuan. In addition, in March this year, Zhejiang HENGWEI was successfully listed on the gem, raising a total of 861 million yuan, China Merchants Securities Co.Ltd(600999) as the sponsor and lead underwriter. Zhejiang HENGWEI’s total issuance cost is 105 million yuan, and the issuance rate is about 12.16%. China Merchants Securities Co.Ltd(600999) can obtain a recommendation and underwriting income of 801036 million yuan.
self operated income fell sharply, seriously dragging down performance
Compared with the growth of investment banking business income, China Merchants Securities Co.Ltd(600999) in the first quarter of this year, the brokerage business income fell by 11.57%, the asset management business income fell by 21.65%, and the net interest income of credit business fell by 63.01% China Merchants Securities Co.Ltd(600999) explained that it was mainly due to the increase in interest expenses. In addition, the decline in self operated income was the most violent, with a year-on-year decline of 90.97%.
In terms of self operated income, China Merchants Securities Co.Ltd(600999) achieved an investment income of 1.786 billion yuan in the first quarter, a year-on-year decrease of 9.91%; The investment income from associates and joint ventures was 405 million yuan, a year-on-year increase of 10.83%; The income from changes in fair value was -1.206 billion yuan, down 465.49% year-on-year, China Merchants Securities Co.Ltd(600999) said, mainly due to the impact of changes in the valuation of financial instruments. Therefore, overall, the company’s self operated income was 176 million yuan, down 90.97% year-on-year, which also significantly dragged down the overall income in the first quarter of this year.
Shanxi Securities Co.Ltd(002500) research report shows: “since the beginning of the year, due to the geopolitical changes and the spread of the epidemic exceeding expectations, the secondary market shock has intensified, and the average daily turnover has also shrunk, which has a certain impact on the performance of securities companies. Among them, the self operated performance is the most affected factor.” At the same time, Shenwan Hongyuan Group Co.Ltd(000166) securities research also believes that although the new fund was obviously under pressure in the first quarter, the trading volume, two financing, IPO and public offering stock increased year-on-year, and self operation is the winner and loser of the performance growth in the first quarter.
It is worth mentioning that in addition to the performance pressure caused by the decline of most business income, China Merchants Securities Co.Ltd(600999) in the first quarter, there was a credit impairment loss of 130 million yuan, a year-on-year increase of 99.45% China Merchants Securities Co.Ltd(600999) said that it was mainly due to the increase of expected credit loss of financing business.
