Near the end of April, the disclosure of 2021 annual report of listed securities companies is coming to an end.
According to the data, as of April 29, except that the Changjiang Securities Company Limited(000783) annual report has not been disclosed yet, the annual reports of the other 49 listed securities institutions have been fully disclosed.
On the whole, thanks to the hot A-share market last year, the performance of the securities industry broke out in 2021. According to the annual report, the operating income and net profit income of 49 listed securities institutions reached 653241 billion yuan and 203.1 billion yuan respectively in 2021, an increase of 22.28% and 31.43% respectively over the same period last year.
At the same time, the market share of the overall net profit of the top 10 securities companies in the industry has increased from 60% in 2020 to nearly 70%.
Despite the general rise in the industry, some small and medium-sized securities companies have ushered in reverse growth. In 2021, First Capital Securities Co.Ltd(002797) , Chinalin Securities Co.Ltd(002945) all experienced a year-on-year decline in net profit, and Zhongshan securities lost 492088 million yuan in net profit.
“Judging from the performance of 2021, China’s securities industry will continue to integrate.” Zhang Rongrong, director of Fitch Ratings for non bank financial institutions in Greater China, and Liu Yichen, CO director of Fitch Ratings for non bank financial institutions in Greater China, said that it is expected that leading securities companies will continue to diversify their business in order to develop more stable charging businesses (such as asset management and wealth Management). However, it will not bring significant changes to the income and profit portfolio in the short term. Therefore, it is expected that the profits of securities companies will continue to fluctuate.
Matthew effect intensifies
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 maintained a high growth in performance. Among them, the net profit of 10 listed securities companies exceeded 10 billion, which doubled compared with the same period in 2020. Among the leading securities companies, Citic Securities Company Limited(600030) is still firmly at 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%.
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 a year-on-year increase of 21.22% and 34.98% respectively.
Subsequently, the net profit attributable to the parent company of 8 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 exceeded 10 billion yuan last year.
Specifically, China International Capital Corporation Limited(601995) rose from the 10th place in the industry in 2020 to the seventh place. Last year, the net profit increased by 48.85% year-on-year, realizing 10.810 billion yuan.
Guosen Securities Co.Ltd(002736) revenue exceeded the 10 billion mark, with a year-on-year increase of 52.86%, reaching 10.117 billion yuan, ranking among the top ten in the industry.
Previously, the China Securities Association released the operating data of securities companies in 2021. In terms of revenue, in 2021, 140 securities companies in the whole industry realized an operating revenue of 502.41 billion yuan and a net profit of 191119 billion yuan, with a year-on-year increase of 12.03% and 21.32% respectively, which is also the increase of revenue and net profit of the securities industry for three consecutive years.
The annual report of 2021 shows that the overall net profit attributable to the parent of the ten securities companies that successfully entered the “10 billion net profit club” is as high as 128234 billion yuan, accounting for 67.1% in the industry, an increase over 2020.
This trend is more obvious in leading securities companies.
In 2020, Citic Securities Company Limited(600030) net profit was 15.517 billion yuan, accounting for 9.03% of the total revenue of the industry. In 2021, Citic Securities Company Limited(600030) a net profit of 22.979 billion yuan, accounting for 11.67% of the total revenue of the industry.
Wang Zejun, an analyst at China Post securities, believes that the performance concentration of head securities companies is increasing. Benefiting from the rapid development of OTC derivatives, under the impact of market conditions in the fourth quarter of 2021, listed securities companies have enhanced their ability to resist fluctuations and smooth returns, without huge losses. Securities companies have made great efforts to promote the rapid growth of derivatives business and boost the investment income of some securities companies.
securities industry integration is expected
“For large-scale securities companies, there will be room for in-depth development in the strategic direction of building aircraft carrier level securities companies in the country,” a person from securities companies told reporters
In recent years, with the accelerated opening of the financial market to the outside world, regulators have encouraged Chinese securities companies to become bigger and stronger, merge and restructure, and build aircraft carrier level securities companies.
In February this year, Citic Securities Company Limited(600030) completed A-share allotment financing of 22.396 billion yuan, setting a new high in the scale of allotment financing in the A-share securities industry. In March, Citic Securities Company Limited(600030) also successfully completed the financing of H-share allotment of HK $6.04 billion (equivalent to about 4.93 billion yuan), and the total financing scale of a + H-share allotment reached 27.33 billion yuan.
Citic Securities Company Limited(600030) said it planned to use no more than 19 billion yuan to develop the capital intermediary business, because the capital intermediary business is the business direction of the company in recent years, the business scale is in the leading position in the industry, and innovative capital intermediary businesses such as income swap and equity derivatives have become important business growth points of the company.
At the same time, Citic Securities Company Limited(600030) said that the allotment and fund-raising was conducive to building an aircraft carrier brokerage.
In 2021, Citic Securities Company Limited(600030) wealth management transformation achieved remarkable results. By the end of the reporting period, the number of customers had exceeded 12 million, and the asset scale of custody customers totaled 11 trillion yuan, an increase of 29% over the end of 2020. The number and asset scale of wealth customers and high net worth customers doubled compared with the end of 2018.
Western Securities Co.Ltd(002673) analyst Luo zuihui believes that Citic Securities Company Limited(600030) acquisition of Guangzhou securities makes up for the shortcomings of regional customer coverage and realizes the rapid accumulation of customer resources.
As the only securities company in China with assets exceeding trillion, Citic Securities Company Limited(600030) has maintained a development trend in recent years. From the perspective of business structure, the contribution of Citic Securities Company Limited(600030) various business income is relatively uniform.
In fact, under the background that the regulators proposed to encourage the creation of aircraft carrier securities companies through market-oriented M & A and other measures, the M & A integration of the securities industry accelerated. From China International Capital Corporation Limited(601995) M & A of CIC securities, Citic Securities Company Limited(600030) acquisition of Guangzhou securities, to the horizontal combination of Tianfeng Securities Co.Ltd(601162) and Hengtai securities, successful cases of M & A and reorganization of securities companies continue to emerge.
A person from a securities firm in South China said that in addition to capital increase and share allotment, the fastest path for China’s aircraft carrier level securities firms is the merger of large securities firms and large securities firms, which is equivalent to the combination of strong and strong, followed by the merger of large securities firms and small securities firms.
However, some brokerage analysts believe that there is still a big gap between China’s top brokerage and overseas brokerage in terms of capital scale and income structure.
Zhang Rongrong, rating director of Fitch Ratings Greater China non bank financial institutions, and Liu Yichen, CO director of Fitch Ratings Greater China non bank financial institutions, also said that China’s securities industry will continue to integrate.
