In January 2022, the performance of the first batch of securities companies in 2021 also gradually surfaced.
As of January 19, according to the Chinese reporters of securities companies, a total of 16 securities companies have issued performance forecasts or unaudited financial reports of the parent company in 2021.
As an important participant and builder of the capital market, benefiting from the hot market, it has almost become the consensus of the industry that the performance of bond business will be better in 2021.
the Chinese reporter of securities companies found that the performance of most of the 16 securities companies that have disclosed their performance has increased. In particular, the head securities firm Citic Securities Company Limited(600030) , with a record high net profit of 23 billion yuan, ranks firmly as the “first brother of the securities industry”; Central China Securities Co.Ltd(601375) became the biggest “dark horse” in 2021, with the highest net profit growth rate of 437%.
Some people are happy and others are worried. Under the general rise of the overall performance of the industry, the net profit of three securities companies has also declined. The decline in the performance of these securities companies may be related to proprietary investment.
general increase in performance: Citic Securities Company Limited(600030) leading net profit
See a leaf and know late autumn.
On January 19, Founder Securities Co.Ltd(601901) became another securities firm that announced the pre increase of performance in 2021. The Chinese reporter of securities companies found that since January 2022, 6 Securities Companies (including subsidiaries) have issued performance pre increase announcements, and 10 parent companies of securities companies (excluding subsidiaries) have unaudited financial data. Among them, 12 securities companies have increased their operating revenue and net profit, accounting for 75% of the sample.
first of all, let’s take a look at the representative of the head securities firm, Citic Securities Company Limited(600030) the strong is HENGQIANG, which continues to achieve a net profit growth of more than 50% on the large performance base in the past.
Citic Securities Company Limited(600030) announced that in 2021, the company achieved an operating revenue of 76.57 billion yuan, a year-on-year increase of 40.8%; The net profit attributable to the shareholders of the parent company was 22.979 billion yuan, a year-on-year increase of 54.20%, and the net profit reached a record high.
As for the performance growth, Citic Securities Company Limited(600030) explained that China’s economy overcame the impact of the epidemic, continued to improve, the capital market developed vigorously, and the company’s investment banking, asset management and other businesses developed balanced and steadily in 2021.
Secondly, the six securities companies that disclosed the performance pre increase announcement have disappeared with a net profit of less than 30%, and the performance of Zheshang Securities Co.Ltd(601878) , Founder Securities Co.Ltd(601901) , Guoyuan Securities Company Limited(000728) among medium-sized securities companies is also remarkable.
Especially Founder Securities Co.Ltd(601901) , which recently disclosed the performance forecast, with limited shareholder support, it is expected to achieve a net profit of RMB 1.645 billion ~ 1.865 billion in 2021, with a year-on-year increase of 50% ~ 70%.
Founder Securities Co.Ltd(601901) said that the capital market recovered in 2021, and the trading volume and turnover of the two markets increased year-on-year. The company actively grasped the market opportunities, and various businesses continued to develop steadily. During the reporting period, the company’s brokerage business income and self operated income increased compared with the previous year.
Western Securities Co.Ltd(002673) Luo zuihui, a non bank analyst, believes that the performance of head securities companies is still expected to maintain high growth, mainly benefiting from the expectations of the implementation of the comprehensive registration system and the transfer of residents’ wealth to the equity market.
there are many “dark horses” among small and medium-sized securities companies: Central China Securities Co.Ltd(601375) the growth rate is amazing
In fact, according to the insiders, from the perspective of the market environment in 2021, the performance of bond business has long been expected to improve.
Specifically, on the one hand, the market was very active in 2021, and the daily stock based turnover in 2021 was RMB 1136.7 billion, a year-on-year increase of 25%, reaching the highest level since 2016. Meanwhile, the balance of the two financial institutions continued to rise. By the end of December 2021, the balance of the two financial institutions had reached 1.84 trillion yuan, a year-on-year increase of 14%. On the other hand, the annual IPO remained hot. In 2021, the IPO scale was 543.8 billion yuan, a year-on-year increase of 13%.
In the hot market environment, due to their low performance base, some small and medium-sized securities companies seized several core businesses, doubled their net profit, and appeared many performance “dark horses”.
among the six listed securities companies that disclosed the announcement of performance pre increase, Central China Securities Co.Ltd(601375) net profit increased by three or four times, becoming a “dark horse” in the performance of securities business in 2021.
On January 10, Central China Securities Co.Ltd(601375) announced that the net profit attributable to the parent company in 2021 is expected to increase by 376 million yuan to 456 million yuan year-on-year, with a year-on-year increase of 360.2% ~ 436.9%.
Central China Securities Co.Ltd(601375) explained that in 2021, the multi-level capital market continued to improve, the capital market flourished, actively grasped market opportunities, continuously improved core competitiveness, and the main businesses such as investment banking and primary and secondary market investment developed steadily.
It is worth mentioning that Guolian Securities Co.Ltd(601456) , which has developed Internet Finance and wealth management business in recent years, also achieved good performance in 2021.
On January 14, Guolian Securities Co.Ltd(601456) announced that the net profit attributable to the parent company is expected to reach 880 million yuan in 2021, an increase of 292 million yuan over the same period of last year, a year-on-year increase of about 49.72%.
Guolian Securities Co.Ltd(601456) said that the company continued to optimize its customer service system, significantly improved its capital scale and operation capacity, took shape of the pan wealth management system, diversified its business structure and continuously enhanced its profitability.
in addition, among the 10 companies that disclosed the unaudited financial statements of the parent company of securities companies, the net profit growth of Jianghai securities and Guosheng securities reached 210% and 163% respectively.
Among them, the operating revenue of Jianghai securities in 2021 was 1.272 billion yuan, a year-on-year decrease of 26%. However, the net profit reached 186 million yuan, a year-on-year increase of 210% over the net profit of 60 million yuan in 2020.
The Chinese reporter of the securities firm noted that Jianghai securities had an “abnormal situation” of declining revenue and sharp increase in net profit, mainly due to the credit impairment loss of 232 million yuan in 2021, a year-on-year decrease of 567 million yuan.
Guosheng securities achieved an operating revenue of 1.975 billion yuan and a net profit of 394 million yuan in 2021, with a year-on-year increase of 10.77% and 162.67% respectively, mainly due to the reversal of credit impairment loss of 114 million yuan, compared with 148 million yuan in 2020.
self operation failed, and the net profit of three securities companies fell
under the hot market in 2021, the general growth of securities companies’ performance has become the norm, so what is the decline of securities companies’ performance? The Chinese reporter of securities companies noted that this may be related to the fluctuation of proprietary investment income of securities companies.
The unaudited results of the parent companies (excluding subsidiaries) of 10 securities companies that disclosed their performance showed that the net profits of Donghai securities, Minmetals securities and Guodu securities fell. If the decline in operating revenue was included, there were Anxin securities and Jianghai securities.
Among them, Donghai securities suffered the most serious performance decline. Its revenue and net profit both halved. In 2021, it realized an operating revenue of 1.078 billion yuan and a net profit of 151 million yuan, down 48.96% and 56.86% respectively year-on-year.
The Chinese reporter of the securities firm noted that the brokerage, investment banking, asset management and other business income of Donghai securities in 2021 was basically the same as that in 2020. The “income from changes in fair value” with the largest change lost 487 million yuan, while the income from changes in fair value in the same period in 2020 reached 472 million yuan.
It is understood that the changes in the fair value of securities companies are closely related to the investment business of securities companies.
Under the sharp increase in industry performance, the operating revenue of Anxin securities also declined, and the net profit only increased slightly year-on-year. This means that under the fierce competition in the industry, Anxin securities may “go ahead or go back” and its performance ranking will decline.
On January 17, Sdic Capital Co.Ltd(600061) released the unaudited financial report of Anxin Securities for 2021. Anxin securities achieved an annual operating revenue of 9.044 billion yuan and a net profit of 3.363 billion yuan. Compared with the unaudited financial report of 9.419 billion yuan and 3.257 billion yuan in 2020, the operating revenue decreased by 3.98% and the net profit increased slightly by 3.25%.
In terms of specific business, the brokerage, investment banking and investment income of Anxin securities increased in 2021, especially the investment banking revenue reached RMB 1.443 billion, a year-on-year increase of 44.63%.
Proprietary business is likely to be the main reason for the weak performance growth of Anxin securities. According to the financial report, Anxin securities lost 576 million yuan from changes in fair value in 2021, while the gain from changes in fair value in the same period in 2020 reached 654 million yuan.
