The red light continues, and three listed securities companies have announced losses in the first quarter.
As of April 26, of the seven listed securities companies that have disclosed the first quarterly report, a total of Guoyuan Securities Company Limited(000728) , Southwest Securities Co.Ltd(600369) and Huaxi Securities Co.Ltd(002926) 3 have suffered losses of 120 million yuan, 130 million yuan and 170 million yuan respectively. Among the other four listed securities companies, except that First Capital Securities Co.Ltd(002797) securities achieved year-on-year growth due to the low performance base of the previous year, the revenue and net profit of the other three listed securities companies decreased significantly. Superimposed on the news that the growth rate of Citic Securities Company Limited(600030) net profit slowed down significantly, the signal of pressure on the performance of the securities industry was released again.
In the first quarter of this year, due to the decline of the overall market and the downturn of fund consignment business, the self operated business of securities companies seriously affected the performance of the first quarterly report of securities companies. Some analysts said that the market shock adjustment in the first quarter, the pressure on the self operated investment sector of securities companies dragged down the performance, and the overall net profit of the industry is expected to decline by 20%.
In the last two days, securities companies, known as the “flag bearer of the bull market”, have become the “main force of smashing the market”. On April 26, China Securities Co.Ltd(601066) afternoon suddenly plunged, leading the whole sector to fall. In the end, the brokerage sector fell sharply by 4.5% and closed, Guosheng Financial Holding Inc(002670) , Chinalin Securities Co.Ltd(002945) , Huaxi Securities Co.Ltd(002926) , Nanjing Securities Co.Ltd(601990) , Hongta Securities Co.Ltd(601236) , Guoyuan Securities Company Limited(000728) fell by the limit China Securities Co.Ltd(601066) , Shanghai Chinafortune Co.Ltd(600621) , Polaris Bay Group Co.Ltd(600155) fell by more than 9%.
three securities companies lost money in the first quarter
This week, listed securities companies entered the intensive disclosure period of the first quarterly report. Up to now, seven listed securities companies including China Merchants Securities Co.Ltd(600999) , Guoyuan Securities Company Limited(000728) , Huaxi Securities Co.Ltd(002926) have released the first quarter report data, while Citic Securities Company Limited(600030) disclosed the first quarter performance express earlier. But on the whole, whether it is the head securities companies or small and medium-sized securities companies, the first quarter report card is not optimistic.
Let’s start with Guoyuan Securities Company Limited(000728) , which achieved a total revenue of 583 million yuan in the first quarter, a year-on-year decrease of 37% compared with 922 million yuan in the same period last year. Meanwhile, the company lost 120 million yuan of net profit attributable to shareholders of Listed Companies in the first quarter, compared with 334 million yuan in the same period last year.
Guoyuan Securities Company Limited(000728) said that in the first quarter, its revenue decreased significantly year-on-year and its net profit was negative, mainly due to the large adjustment range of the securities market and the large floating loss of equity investment in self operated securities investment business, while the income and benefits of other business segments were basically the same or increased compared with the same period last year.
In the first quarter, the revenue and net profit of Southwest Securities Co.Ltd(600369) were 38.91 million yuan and – 128 million yuan respectively, with a year-on-year decrease of 95% and 152% respectively Southwest Securities Co.Ltd(600369) also attributed it to the “loss impact of proprietary business” Huaxi Securities Co.Ltd(002926) the situation here seems even less optimistic. Data show that Huaxi Securities Co.Ltd(002926) achieved a total revenue of 439 million yuan in the first quarter, a year-on-year decrease of 54%; The net profit attributable to shareholders of listed companies was – 170 million yuan, a year-on-year decrease of 153%.
However, unlike the other two companies, which attributed the decline in performance to proprietary business, Huaxi Securities Co.Ltd(002926) disclosed in the first quarterly report that due to the decline in underwriting business income, the net fee income of investment banking business was 40.13 million yuan, a year-on-year decrease of 71%; Affected by the market situation, there was a loss, and the investment income lost 174 million yuan, a significant year-on-year decrease of 138%.
self operated investment success or failure Xiao He
It should be noted that in addition to the losses of the above three securities companies in the first quarter, the performance of leading securities companies such as China Merchants Securities Co.Ltd(600999) and Haitong Securities Company Limited(600837) also declined in the first quarter due to the pressure of proprietary business. According to the data, in the first quarter, Haitong Securities Company Limited(600837) and China Merchants Securities Co.Ltd(600999) achieved revenue of 4.131 billion yuan and 3.697 billion yuan respectively, a year-on-year decrease of 63% and 38%; The net profit was 1.5 billion yuan and 1.49 billion yuan respectively, with a year-on-year decrease of 58.5% and 43%.
Compared with the past two years, the self operated business of securities companies has soared in good years. Now the market has reversed, which has also become the biggest drag on the performance of securities companies. Looking through the profit statement of listed securities companies in the first quarter, the income from changes in fair value of Guoyuan Securities Company Limited(000728) , Huaxi Securities Co.Ltd(002926) and Southwest Securities Co.Ltd(600369) were – 245 million yuan, – 717 million yuan and – 353 million yuan respectively, which is related to the self investment scale of different securities companies, but also fully reflects the pressure of self investment business and its impact on the overall performance of securities companies.
In addition, Citic Securities Company Limited(600030) previously passed the first quarter report card through the performance express. The performance express shows that Citic Securities Company Limited(600030) in the first quarter, the operating revenue reached 15.216 billion yuan, a year-on-year decrease of 7.20%; The net profit attributable to the shareholders of the parent company was 5.229 billion yuan, a year-on-year increase of 1.24%.
As a well deserved leader in the industry, Citic Securities Company Limited(600030) the decline in revenue shows that the decline in the performance of securities companies in the first quarter is not an example. “In the first quarter, the market fluctuated and adjusted, and the pressure on the self operated investment sector of securities companies dragged down the performance. We expect the overall net profit of the industry to decline by 20%.” Zhang Jingwei, chief non banking analyst of Anxin securities, said that from the data of securities companies first disclosed, China stock market news / Citic Securities Company Limited(600030) / China Merchants Securities Co.Ltd(600999) net profit attributable to parent company increased by 13%, 1% and – 43% respectively year-on-year, and the performance differentiation showed.
Combined with the Matthew effect of the securities industry, Liu Xinqi, chief analyst of Guotai Junan Securities Co.Ltd(601211) non bank, even proposed that Citic Securities Company Limited(600030) will be the only traditional securities firm to achieve positive growth in net profit attributable to parent company in the first quarter of 2022. He believes that the expansion of Citic Securities Company Limited(600030) financial assets mainly comes from customer demand business represented by derivatives rather than directional business, so it is relatively less affected by market adjustment; During the reporting period, the base of its performance, especially the income from investment business, was relatively low; It is inferred that the decline of operating revenue is related to the decline of revenue with low profit margin such as bulk commercial transactions.
According to Wang Zejun, a non banking analyst at China Post securities, in terms of proprietary business, under the downward trend of market shock, the investment and research ability of different companies will be directly reflected in the performance difference of proprietary business income. The derivatives business ability of head securities companies is stronger than that of small and medium-sized securities companies, and their profitability in terms of anti risk fluctuation and structural market is stronger. However, it is common for new shares to break and investors to abandon their purchases this year. The follow-up investment system makes securities companies actively or passively bear the risk of investment income, resulting in further performance differentiation.
