The performance of securities companies increased significantly.
On January 12, , Citic Securities Company Limited(600030) issued the announcement of 2021 annual performance express. Last year, Citic Securities Company Limited(600030) achieved a revenue of 76.57 billion yuan, a year-on-year increase of 40.8%; The net profit was 22.979 billion yuan, a year-on-year increase of 54.2%. Not only Citic Securities Company Limited(600030) , Zheshang Securities Co.Ltd(601878) , Central China Securities Co.Ltd(601375) also have good performance.
Central China Securities Co.Ltd(601375) it is estimated that the net profit last year increased by 376 million yuan to 456 million yuan, a year-on-year increase of 360.20% – 436.90%. Zheshang Securities Co.Ltd(601878) it is estimated that the net profit realized last year will increase by about 488 million yuan to 650 million yuan, a year-on-year increase of about 30% – 40%.
For the reasons for performance growth, securities companies can be summarized in two aspects. First, China’s capital market has developed well and created better external conditions. The second is the internal cause. The company firmly seized the opportunity and achieved better development of various businesses.
although only three securities companies have announced the performance forecast at present, according to the performance of the first three quarters, the performance of most listed securities companies will increase well last year.
the performance of three securities companies increased significantly last year
The performance of Citic Securities Company Limited(600030) , Central China Securities Co.Ltd(601375) , Zheshang Securities Co.Ltd(601878) increased greatly last year. Among them, Central China Securities Co.Ltd(601375) net profit increased by about 400% year-on-year.
As for the reasons for performance growth, Zheshang Securities Co.Ltd(601878) said that in 2021, China’s economic development showed a steady and positive trend, and China’s capital market developed vigorously. The company actively grasped market opportunities, continuously improved the company’s core competitiveness and steadily developed all businesses around the business strategic goal of serving the real economy, So as to realize the steady growth of net profit attributable to shareholders of listed companies.
Central China Securities Co.Ltd(601375) said that in 2021, the multi-level capital market was continuously improved and the capital market was booming. The company actively grasped the market opportunities and continuously improved its core competitiveness. The main businesses such as investment banking and primary and secondary market investment developed steadily.
Citic Securities Company Limited(600030) said that China’s economy overcame the impact of the epidemic, continued to improve, and the capital market developed vigorously. The company’s investment banking, asset management and other businesses developed in a balanced and steady manner in 2021.
The growth of various businesses last year is not clear at present. However, you can refer to the performance of the first three quarters. Take Citic Securities Company Limited(600030) as an example. Citic Securities Company Limited(600030) the net brokerage fee income in the first three quarters was 10.9 billion yuan, a year-on-year increase of 28%; The net income from investment banking fees was 5.6 billion yuan, a year-on-year increase of 24%; The net income from asset management business was 8.6 billion yuan, a year-on-year increase of 60%; The investment income was 16 billion yuan, a year-on-year increase of 4%.
the net profit of more than 70% of securities companies in the first three quarters increased year-on-year
although only three securities companies announced the performance of last year, the performance of listed securities companies was generally good in the previous three quarters.
Previously, 41 listed securities companies have disclosed the performance of the first three quarters. From the perspective of the revenue of listed securities companies in the first three quarters of this year, nearly 90% of securities companies achieved year-on-year growth, and the revenue of only five securities companies fell year-on-year.
Specifically, Citic Securities Company Limited(600030) ranked first with a revenue of 57.812 billion yuan, Haitong Securities Company Limited(600837) and Guotai Junan Securities Co.Ltd(601211) ranked second and third with a revenue of 34.839 billion yuan and 31.907 billion yuan respectively. Huatai Securities Co.Ltd(601688) , Gf Securities Co.Ltd(000776) , China Galaxy Securities Co.Ltd(601881) ranked the third echelon with revenue of 26.907 billion yuan, 26.871 billion yuan and 26.103 billion yuan respectively. The revenue of Shenwan Hongyuan Group Co.Ltd(000166) , China Merchants Securities Co.Ltd(600999) , China International Capital Corporation Limited(601995) , China Securities Co.Ltd(601066) in the first three quarters also exceeded 20 billion yuan. In addition, the revenue of five securities companies is between 10 billion yuan and 20 billion yuan.
In terms of the net profit attributable to the parent of listed securities companies in the previous three quarters, more than 70% of the securities companies recorded an increase in the performance in the first three quarters. The net profit attributable to the parent of four securities companies has exceeded 10 billion yuan, namely Citic Securities Company Limited(600030) , Haitong Securities Company Limited(600837) , Guotai Junan Securities Co.Ltd(601211) and Huatai Securities Co.Ltd(601688) , compared with only Citic Securities Company Limited(600030) in the same period last year.
Specifically, Citic Securities Company Limited(600030) ranks first with a net profit of 17.645 billion yuan. The competition between the second and fourth places is particularly fierce. The net profits of Haitong Securities Company Limited(600837) , Guotai Junan Securities Co.Ltd(601211) , Huatai Securities Co.Ltd(601688) in the first three quarters were 11.826 billion yuan, 11.635 billion yuan and 11.049 billion yuan respectively, which is in the second echelon. In addition, the net profit of Gf Securities Co.Ltd(000776) , China Merchants Securities Co.Ltd(600999) in the first three quarters exceeded 8 billion yuan, and the net profit of Guosen Securities Co.Ltd(002736) , China International Capital Corporation Limited(601995) , Shenwan Hongyuan Group Co.Ltd(000166) , China Galaxy Securities Co.Ltd(601881) , China Securities Co.Ltd(601066) since this year has also exceeded 7 billion yuan.
from the perspective of performance growth, the gap between large securities companies and small and medium-sized securities companies has widened again, and the head securities companies still maintain a high growth rate in the case of large volume.
Among the large securities companies with a net profit of more than 7 billion yuan in the first three quarters, only China Securities Co.Ltd(601066) performance decreased slightly year-on-year. The performance of China International Capital Corporation Limited(601995) in the first three quarters of this year increased by more than 50% year-on-year. The performance of Citic Securities Company Limited(600030) , Haitong Securities Company Limited(600837) , Guosen Securities Co.Ltd(002736) in the first three quarters also increased by about 40%, and the performance of Guotai Junan Securities Co.Ltd(601211) since this year also increased by nearly 30%.
The performance elasticity of small and medium-sized securities companies is greater, and the income of securities investment business is an important factor affecting the performance of securities companies. For example, Central China Securities Co.Ltd(601375) the net profit in the first three quarters was 497 million yuan, with a year-on-year increase of about 472.6%, mainly due to the increase in the revenue of investment banking, proprietary investment and commodity sales of subsidiaries. The Pacific Securities Co.Ltd(601099) securities also increased significantly. In the first three quarters, the net profit was 340 million yuan, a year-on-year increase of 243.2%, mainly due to the increase of self investment business income.
multi-point flowering of head securities brokerage, self operation and asset management
from the performance in the first three quarters of this year, the business development of head securities brokerage, self operation, asset management, investment banking and credit is more balanced and has obvious advantages, which is continuing to open the gap with small and medium-sized securities companies.
On the whole, the self operated investment business is the growth engine of the performance of large securities companies. In addition, due to the active trading in the A-share market this year, the brokerage, asset management, credit and other businesses of securities companies also generally have good performance. The investment banking businesses were happy and worried. The net income of investment banking businesses of Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) , Shenwan Hongyuan Group Co.Ltd(000166) , Orient Securities Company Limited(600958) and other companies increased, while the income of some securities companies decreased slightly.
In the first three quarters of this year, Citic Securities Company Limited(600030) realized a net profit of 17.645 billion yuan, a year-on-year increase of 39.37%.
Citic Securities Company Limited(600030) said that it was mainly due to the stable growth of all businesses of the company, and the large increase in net interest income, net handling fee and commission income and other business income compared with the same period last year.
Guotai Junan Securities Co.Ltd(601211) in the first three quarters, the revenue was 31.907 billion yuan, a year-on-year increase of about 24%; The net profit attributable to the parent company was RMB 11.635 billion, a year-on-year increase of about 30%.
In this regard, Guotai Junan Securities Co.Ltd(601211) said that it was mainly due to the year-on-year growth of the company’s operating revenue. The main growth items were: the income from changes in fair value increased by 206.88% year-on-year due to fluctuations in the securities market; Investment income increased by 19.35% year-on-year due to the increase in investment income of trading financial assets and the equity revaluation of Shanghai Securities; The net income from handling fees and commissions increased by 8.28% year-on-year due to the growth of brokerage business income and the increase of asset management business handling fees.
Huatai Securities Co.Ltd(601688) in the first three quarters of this year, the revenue was 26.907 billion yuan, a year-on-year increase of about 10.6%; The net profit was RMB 11.049 billion, a year-on-year increase of 25%. For the growth of net profit attributable to parent company, Huatai Securities Co.Ltd(601688) said that it was mainly due to the decrease of operating expenses.
China International Capital Corporation Limited(601995) the net profit attributable to the owners of the parent company in the first three quarters was 7.454 billion yuan, a year-on-year increase of 52.39%. China International Capital Corporation Limited(601995) said that the operating revenue increased significantly due to the increase of brokerage and investment banking service fees and commission income and the increase of net income from equity investment and fund investment. At the same time, the group effectively controlled expenses and increased the operating profit margin.
it is worth mentioning that the asset management business of securities companies has improved quite a lot this year, and large securities companies have maintained a high growth rate. Zhongtai Securities Co.Ltd(600918) according to the research report, under the background of the new regulations of “big asset management”, the importance of securities companies participating in public offering business has been continuously improved, and the public offering business of asset management is still in the early stage of development. The participating and holding public offering funds benefited from the improvement of residents\’ financial needs and accelerated scale growth. In Q3, 726.7 billion funds were issued in a single quarter, an increase of 31% month on month, contributing stable income to shareholder securities companies.
From the perspective of the net income of asset management business of securities companies, Citic Securities Company Limited(600030) and Gf Securities Co.Ltd(000776) share equally. In the first three quarters, the net income of asset management business was 8.579 billion yuan and 7.351 billion yuan respectively, with a year-on-year increase of 59.05% and 56.25% respectively. Orient Securities Company Limited(600958) ranked third with a net income of 2.788 billion yuan and maintained a high growth of 56.94%.
The investment banking business is a few happy and a few sad. Citic Securities Company Limited(600030) the net fee income from investment banking business was 5.644 billion yuan, a year-on-year increase of 25.63%. China International Capital Corporation Limited(601995) the net fee income from investment banking reached 4.133 billion yuan, a year-on-year increase of 22.66%. The net fee income of investment banking business of Shenwan Hongyuan Group Co.Ltd(000166) increased by 30.51% year-on-year to RMB 1.167 billion, mainly due to the increase in the net income of securities underwriting and recommendation business.
The net income of investment banking fees of some large securities companies decreased slightly compared with the same period last year, such as Huatai Securities Co.Ltd(601688) , Guotai Junan Securities Co.Ltd(601211) , China Securities Co.Ltd(601066) , Haitong Securities Company Limited(600837) , etc.
