In the middle of January, the first batch of commercial achievements of bonds surfaced one after another.
As of January 19, according to the reporter of the securities times, a total of 16 securities companies have issued performance forecasts or unaudited financial reports of the parent company in 2021.
As an important intermediary in the capital market, benefiting from the hot market, it has almost become the consensus of the industry that the performance of securities companies will improve in 2021.
The reporter of the Securities Times found that the performance of most of the 16 securities companies that have disclosed their performance has increased, especially the head securities company Citic Securities Company Limited(600030) , which continues to be the “first brother of the securities industry” with a record high net profit data of 23 billion yuan, Central China Securities Co.Ltd(601375) has become the “dark horse” with the largest performance in 2021, with the highest net profit growth rate of 437%.
Some people are happy and others are worried. Under the general rise of industry performance, the net profit of three securities companies has declined, especially Donghai securities, which is located in East China, whose operating revenue and net profit have been halved, and the decline in the performance of these securities companies may have a great relationship with the decline in self operation of securities companies.
general performance rise:
Citic Securities Company Limited(600030) net profit
A glimpse reveals the whole leopard.
On January 19, Founder Securities Co.Ltd(601901) became another securities firm that issued the announcement of performance pre increase. The reporter found that since January this year, 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 both operating revenue and net profit, accounting for 75% of the sample.
First, let’s take a look at the head brokerage representative, Citic Securities Company Limited(600030) strong HENGQIANG, who continued to reap a net profit growth of more than 50% on the previous large performance base.
Citic Securities Company Limited(600030) announced that in 2021, the group 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 for Founder Securities Co.Ltd(601901) which recently disclosed the performance forecast, with limited shareholder support, the company expects to realize 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, the trading volume and turnover of the two cities increased year-on-year, 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.
small and medium-sized securities companies are mostly “dark horses”:
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 highly active in 2021, with a daily stock based turnover of RMB 1136.7 billion in 2021, a year-on-year increase of 25%. 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 pre increase announcement of performance, Central China Securities Co.Ltd(601375) net profit increased by three or four times, becoming a real performance “dark horse”.
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) explain that in 2021, the multi-level capital market will continue to improve, the capital market will flourish, actively grasp market opportunities, continuously improve core competitiveness, and the main businesses such as investment banking and primary and secondary market investment will develop steadily.
It is worth mentioning that 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% compared with the net profit of 60 million yuan in 2020.
The reporter of the Securities Times 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 supporting hind leg:
half of the net profit of Donghai securities
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? Securities Times reporter noted that this is mainly related to the fluctuation of proprietary business of securities companies.
The unaudited performance of the parent companies (excluding subsidiaries) of 10 securities companies that disclosed their performance showed that there was a decline in the net profit of Donghai securities, Minmetals securities and Guodu securities. If combined with the decline in operating income, the securities companies also included Anxin securities and Jianghai securities.
Among them, Donghai securities suffered the most serious decline in performance. 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 Securities Times reporter 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 reached 472 million yuan in the same period in 2020.
It is understood that the changes in fair value of securities companies are closely related to the self operated business of securities companies. If the invested stocks rise, the changes in fair value will be positive, and the floating profit will contribute to the performance, otherwise it will become a drag on the performance.
In addition to the small-scale securities companies, the “neck” securities company Anxin securities has experienced a sharp increase in industry performance, but its operating revenue has declined, and its net profit has only recorded a slight increase year-on-year. Under the fierce competition in the industry, it may fall behind in performance ranking.
On January 17, the unaudited financial report of Anxin securities (parent company monomer) for 2021 showed that the annual operating revenue was 9.044 billion yuan and the net profit was 3.363 billion yuan. Compared with the operating revenue of 9.419 billion yuan and the net profit of 3.257 billion yuan in 2020, the operating revenue decreased by 3.98% and the net profit increased slightly by 3.25%.
From the perspective of the specific business of Anxin securities, the brokerage, investment banking and investment income of Anxin securities increased in 2021, especially the investment banking revenue reached 1.443 billion yuan, a year-on-year increase of 44.63%.
Compared with the steady growth of investment banking and brokerage business, proprietary business may also be the main reason for the weak performance growth of Anxin securities. The financial report shows that the loss of income from changes in fair value of Anxin securities in 2021 is 576 million yuan, while the income from changes in fair value in the same period in 2020 reaches 654 million yuan.
