It is an indisputable fact that the performance of securities companies in the first quarter was under pressure. None of the five securities companies announced successively on the 27th were spared, including Western Securities Co.Ltd(002673) , Xiangcai Co.Ltd(600095) , Northeast Securities Co.Ltd(000686) and Northeast Securities Co.Ltd(000686) .
So far, among the 14 securities companies that have disclosed their first quarter transcripts, except for the undisclosed growth rate of Jianghai securities, the revenue of 11 companies has declined year-on-year, and only Xiangcai Co.Ltd(600095) and First Capital Securities Co.Ltd(002797) recorded growth. In terms of net profit, there was also a year-on-year decline in 11 securities companies, and the number of securities companies from profit to loss also rose to 7, namely Western Securities Co.Ltd(002673) , Xiangcai Co.Ltd(600095) , Guoyuan Securities Company Limited(000728) , Southwest Securities Co.Ltd(600369) , Huaxi Securities Co.Ltd(002926) , Northeast Securities Co.Ltd(000686) and Jianghai securities.
The only two securities companies with year-on-year increase in net profit are Citic Securities Company Limited(600030) and First Capital Securities Co.Ltd(002797) respectively, of which First Capital Securities Co.Ltd(002797) net profit soared more than 4 times year-on-year due to the low base of net profit attributable to the parent company in the same period of last year. The performance squat jump has also become the catalyst for the sharp rise of the company’s share price. On the 27th, the share price directly closed the limit to 5.56 yuan.
Affected by the sharp fluctuation of the market, the investment income of many securities companies has been greatly reduced, which has also become the biggest constraint on performance growth. Since becoming the largest business of securities companies in 2017, self operated business has maintained the first position in terms of revenue contribution for many consecutive years. From the perspective of securities companies that have disclosed the first quarterly report, proprietary business seems to have become a “double-edged sword” of performance.
three securities companies in the west, Xiangcai and northeast turn profit into loss
At the end of April, the performance of securities companies in the first quarter was still intensively disclosed. On the 27th, five securities companies, including Western Securities Co.Ltd(002673) , Xiangcai securities, Northeast Securities Co.Ltd(000686) , Sealand Securities Co.Ltd(000750) , Shanxi Securities Co.Ltd(002500) , were “listed” at the same time.
The results of the above-mentioned securities companies are still .
Western Securities Co.Ltd(002673) the first quarterly report shows that the company’s operating revenue during the reporting period was 998 million yuan, a year-on-year decrease of 20.43%; The net profit attributable to the shareholders of the listed company was – 17 million yuan, from profit to loss. According to the financial report, Western Securities Co.Ltd(002673) a substantial loss of 329 million yuan from changes in fair value in the first quarter was due to changes in the fair value of trading financial assets in the current period; In other words, the company’s investment income is a significant drag on the performance decline.
Similarly, Xiangcai Co.Ltd(600095) , the company increased revenue without increasing profit in the first quarter, with an operating revenue of 848 million yuan, a year-on-year increase of 46.78%; The net profit loss attributable to the owner of the parent company was 62 million yuan. In the first quarter, the company’s proprietary business also performed poorly, in which only the income from changes in fair value lost 109 million yuan.
Northeast Securities Co.Ltd(000686) also recorded a loss in the first quarter. At present, its loss amount (- 259 million yuan) is second only to Jianghai securities (- 422 million yuan). In the first quarter, Northeast Securities Co.Ltd(000686) realized an operating revenue of 799 million yuan, a year-on-year decrease of 38.38%, a net profit loss of 259 million yuan and a net profit of 338 million yuan in the same period of last year, from profit to loss. Due to the increase in the floating loss of financial assets in the current period, Northeast Securities Co.Ltd(000686) fair value change income was -549 million yuan, a sharp decrease of nearly 12 times year-on-year, which also became a major constraint on the decline of the company’s performance.
The quarterly reports of Sealand Securities Co.Ltd(000750) and Shanxi Securities Co.Ltd(002500) also showed a decline in both revenue and net profit, which is also directly related to the loss of proprietary business. Of which, Sealand Securities Co.Ltd(000750) operating income was 663 million yuan, a year-on-year decrease of 37.98%; The net profit attributable to the parent company was 52.245 million yuan, a year-on-year decrease of 69.98% Shanxi Securities Co.Ltd(002500) realized a main business income of RMB 474 million, a year-on-year decrease of 9.12%; The net profit attributable to the parent company was 65 million yuan, a year-on-year decrease of 51.80%.
dragged down by self operation, the number of loss making securities companies increased to 7 in the first quarter
So far, among the 14 securities companies that have disclosed their first quarter transcripts, except for the undisclosed growth rate of Jianghai securities, the revenue of 11 companies has declined year-on-year, and only Xiangcai Co.Ltd(600095) and First Capital Securities Co.Ltd(002797) recorded growth. The number of securities companies that recorded losses also rose to 7, namely Western Securities Co.Ltd(002673) , Xiangcai Co.Ltd(600095) , Guoyuan Securities Company Limited(000728) , Southwest Securities Co.Ltd(600369) , Huaxi Securities Co.Ltd(002926) , Northeast Securities Co.Ltd(000686) and Jianghai securities.
The performance of the first quarter was generally under pressure, and the head securities companies were not spared. Among the three leading securities companies that have disclosed their performance, the net profits of Haitong Securities Company Limited(600837) and China Merchants Securities Co.Ltd(600999) both fell by more than 40% year-on-year, while Citic Securities Company Limited(600030) increased slightly by 1.24%.
Citic Securities Company Limited(600030) previously disclosed performance express showed that the company’s operating revenue in the first quarter was 15.216 billion yuan, a year-on-year decrease of 7.2%; The net profit was 5.229 billion yuan, a year-on-year increase of 1.24% Haitong Securities Company Limited(600837) in the first quarter, the operating revenue was 4.131 billion yuan, a year-on-year decrease of 63.09%; The net profit was 1.5 billion yuan, a year-on-year decrease of 58.53% China Merchants Securities Co.Ltd(600999) over the same period, the operating revenue was 3.696 billion yuan, a year-on-year decrease of 38.01%; The net profit was 1.490 billion yuan, a year-on-year decrease of 42.99%.
In contrast, the performance of small and medium-sized brokers is even less optimistic than the performance of small and medium-sized brokers. As of the press release, in the first quarter, the net profit attributable to the parent net profit in the first quarter was the same as the same period of the year on year on year. The performance of small and medium-sized brokers is even less optimistic. By contrast, the performance of the performance of small and medium-sized brokers is even less optimistic. The performance of the performance of small and medium-sized brokers is not optimistic. In the first quarter of the first quarter, as of the release, the number of brokers that have turned in profit to the year on year on year-on-on-year net profit in the first quarter of the first quarter, and the number of firms that have turned profit into loss has also increased to seven, accounting for a 50% of 50 percent, respectively Jianghai securities (- 4222 billion yuan (- 422.22 billion yuan), the 0 Shenzhen Zhenye(Group)Co.Ltd(000006) 8 Shantui Construction Machinery Co.Ltd(000680) 0068686868686 (- 422 billion yuan), the 0000 Shenzhen Zhenye(Group)Co.Ltd(000006) 8 Shantui Construction Machinery Co.Ltd(000680) 0068 Northeast Securities Co.Ltd(000686) 86 (- RMB and Western Securities Co.Ltd(002673) (- RMB 17 million).
From the perspective of securities companies that have published the first quarterly report, it is an indisputable fact that the overall decline of proprietary business has become the biggest constraint on performance. Since becoming the largest business in 2017, self operated business has maintained the first position in terms of revenue contribution for many consecutive years. Specifically, the average proportion of the net income of self operated business of 41 listed securities companies is 28.2%, which has ranked first in terms of contribution for four consecutive years.
It is worth noting that the proportion of proprietary business in the overall revenue fluctuated greatly in different years. For example, the performance contribution of proprietary business was 27.2% in 2018 and increased to 33.4% in 2019.
This reflects the impact of market fluctuations on proprietary business, and this law has also been verified in the first quarterly report of securities companies this year. For example, the income from changes in fair value in Northeast Securities Co.Ltd(000686) first quarter was -549 million yuan, Western Securities Co.Ltd(002673) was -329 million yuan and Xiangcai Co.Ltd(600095) was -109 million yuan.
performance: take off after squatting, First Capital Securities Co.Ltd(002797) become an exception
In the “tragic” performance of securities business, there are also exceptions to “amazing” First Capital Securities Co.Ltd(002797) 1-march: operating income of 530 million yuan, up 46.2% year on year; The net profit attributable to the parent company was 71.89 million yuan, a year-on-year increase of 421.8%. However, the sharp increase in the company’s net profit is mainly based on the low base of only 14 million yuan in the same period last year.
Haitong Securities Company Limited(600837) non bank team pointed out that First Capital Securities Co.Ltd(002797) as a scarce target characterized by fixed income, has its own uniqueness, and has formed a distinctive sales and trading model suitable for the development of medium-sized securities companies. While maintaining a high market coverage in terms of government bonds, financial bonds of policy banks and debt financing tools of non-financial enterprises, it continues to develop new business varieties for sales.
In other businesses, the company’s brokerage business income in the first quarter was 96.3 million yuan, a year-on-year decrease of 5.2%; Investment banking revenue was 76.53 million yuan, a year-on-year increase of 42.3%; The revenue from asset management business was 250 million yuan, a year-on-year increase of 21.7%.
