The biggest event in the securities sector this week is Citic Securities Company Limited(600030) (600030, SH; yesterday’s closing price of 25.70 yuan). The allotment is about to land. This is the largest A-share placement scheme for securities companies in history.
According to the arrangement, from January 19 (this Wednesday), Citic Securities Company Limited(600030) will be suspended and enter the allotment period. On January 14 (last Friday), after the official announcement of the landing of the allotment, Citic Securities Company Limited(600030) fell sharply, but on January 17 (Monday), Citic Securities Company Limited(600030) turned red strongly and led the overall rise of the securities sector. On January 18 (Tuesday), Citic Securities Company Limited(600030) rose slightly by 0.12%.
According to the observation of the reporter of the daily economic news, in addition to Citic Securities Company Limited(600030) , according to the statistics of the financial terminal of China stock market news choice, at present Orient Securities Company Limited(600958) , Caitong Securities Co.Ltd(601108) , China Industrial Securities Co.Ltd(601377) have also announced the stock allotment plan. According to the current proposed fund-raising amount, the total scale is 38.8 billion yuan.
most analysts are optimistic about the company
According to the announcement issued on Citic Securities Company Limited(600030) January 13, subject to the total number of A-Shares after the closing of the market on January 18, 2022, 1.5 shares per 10 shares are allocated to all A-share shareholders, and the total number of A-Shares that can be allocated is 1.597 billion.
According to the arrangement, the total amount of funds raised in this allotment shall not exceed 28 billion yuan, of which the total amount of funds raised in A-share allotment shall not exceed 23.065 billion yuan and the total amount of funds raised in H-share allotment shall not exceed 4.935 billion yuan. The allotment price is 14.43 yuan / share, the allotment code is “700030”, and the allotment is referred to as “CITIC allotment”. From January 19 to 26, Citic Securities Company Limited(600030) A shares will be suspended.
On January 14 (last Friday), the news of the landing of Citic Securities Company Limited(600030) allotment triggered capital flight. On that day, the company’s share price fell sharply after opening low, and finally closed with a sharp drop of 5.05%. However, on January 17 (Monday), market confidence seemed to recover, and finally Citic Securities Company Limited(600030) closed with an increase of 2.56% to close at 25.67 yuan per share. On January 18 (Tuesday), Citic Securities Company Limited(600030) rose slightly by 0.12%.
The reporter of the daily economic news found that from the perspective of the seller’s research on the Citic Securities Company Limited(600030) allotment, most analysts’ suggestions are optimistic about the development of Citic Securities Company Limited(600030) after the allotment.
For example, Zhongtai Securities Co.Ltd(600918) said in commenting on the allotment of Citic Securities Company Limited(600030) , Citic Securities Company Limited(600030) issued 5 billion yuan, 6 billion yuan and 1.5 billion yuan of perpetual subordinated bonds totaling 12.5 billion yuan on July 27, August 10 and August 30, 2021 respectively, indicating the urgency of the company’s capital demand. “The landing of this allotment will ease the pressure on the company. We believe that the tightness of some regulatory indicators is a more urgent demand for Citic Securities Company Limited(600030) than the use of business capital. The mid-2021 report shows that by the end of June 2021, Citic Securities Company Limited(600030) parent company’s risk coverage, liquidity coverage and net stable capital ratio were 143.3%, 125.6% and 121.7% respectively, which is close to the early warning standard.”
In addition, Zhongtai Securities Co.Ltd(600918) believes that Citic Securities Company Limited(600030) as a securities firm with the most outstanding comprehensive strength has achieved excellent revenue performance in 2021. It is expected that its net profit scale will steadily rank first in the industry, and its net profit growth rate will also rank among the top ten securities firms. The share allotment plan announced at the beginning of 2021 has suppressed the performance of the stock price to a certain extent. The current stock price corresponds to the P / E ratio and P / B ratio in 2022, which are 13.3 times and 1.44 times respectively, maintaining the “buy” rating.
two important shareholders participated in the allotment
It is worth mentioning that on June 28, 2021, Citic Securities Company Limited(600030) announced that the company received the letter of commitment issued by China CITIC Co., Ltd., the largest shareholder, promising to fully subscribe for the distributable shares determined by the company’s allotment plan in cash according to the number of shares held after the closing of the market on the registration date of this allotment.
China CITIC Co., Ltd. currently holds 15.47% of Citic Securities Company Limited(600030) . According to this calculation, the subscription amount is about 4.4 billion yuan.
In addition, Liuzhou Liangmianzhen Co.Ltd(600249) also announced on January 17, 2022 that as of the announcement date, the company holds Citic Securities Company Limited(600030) 8659800 shares, plans to fully subscribe for 1299000 allocated shares, and needs to use its own funds of no more than 18.75 million yuan.
Liuzhou Liangmianzhen Co.Ltd(600249) said that participating in the Citic Securities Company Limited(600030) share allotment can ensure that the shareholders’ equity enjoyed by the company will not be diluted, which is conducive to the maintenance and appreciation of the company’s assets, improve the company’s anti risk ability and sustainable development ability, and is in the interests of the company. The Citic Securities Company Limited(600030) held by the company is measured at fair value, and its stock price fluctuation will have a certain impact on the company’s net profit.
However, it is worth mentioning that Liuzhou Liangmianzhen Co.Ltd(600249) also reminds investors that if they participate in the Citic Securities Company Limited(600030) allotment, there may be a risk that the issuance of this allotment will fail because the number of shares subscribed by their original shareholders does not reach 70% of the number to be placed; Due to the fluctuation of securities price, there is a risk of uncertainty in the actual income of the shares held. “To this end, the company will pay close attention to the operation, financial status and profitability of Citic Securities Company Limited(600030) , actively take countermeasures, strengthen risk control and reduce investment risks.”
According to the observation of the reporter of the daily economic news, judging from the recent market sentiment, investors still mostly support the stock allotment of securities companies, and Soochow Securities Co.Ltd(601555) is the latest one to complete the stock allotment. On December 22, 2021, Soochow Securities Co.Ltd(601555) announced that as of the end date of subscription and payment, the effective subscription amount of the company’s allotment of shares was 1.127 billion shares, accounting for 97.86% of the total 1.152 billion shares available this time, and the subscription amount was RMB 8.103 billion. Therefore, the vast majority of investors left on the equity registration date should still participate in the “big brother” Citic Securities Company Limited(600030) allotment.
