At the beginning of the new year, the performance of 11 securities companies has been preliminarily demonstrated. As an important participant in the capital market, the profitability of the securities industry has continued to improve. In the listing echelon, the overall performance of two A-share listed securities companies showed a steady growth trend; In addition, the performance of securities business of 8 listed companies is different, and the performance of 1 securities company listed on the new third board is mediocre.
Citic Securities Company Limited(600030) net profit
record high
In the listing echelon, two A-share listed securities companies have released the performance express in 2021, and the overall performance has achieved a steady increase in net profit compared with the average annual net profit in 2020. Among them, Citic Securities Company Limited(600030) achieved an operating revenue of 76.57 billion yuan, a year-on-year increase of 40.8%, and a net profit attributable to the shareholders of the parent company of 22.979 billion yuan, a year-on-year increase of 54.2%, with a record high net profit.
For Citic Securities Company Limited(600030) performance express, at least 15 securities companies have issued opinions that Citic Securities Company Limited(600030) performance has greatly exceeded expectations.
However, on the second day after the release of the performance express, Citic Securities Company Limited(600030) threw out an announcement on the issuance of A-share allotment. The total amount of funds raised by the company’s A-share allotment did not exceed 23.065 billion yuan. Such a large amount of allotment triggered hot discussion in the market.
The second performance express came from Guoyuan Securities Company Limited(000728) , with an operating revenue of RMB 6.076 billion, a year-on-year increase of 34.18%, and a net profit attributable to shareholders of listed companies of RMB 1.87 billion, a year-on-year increase of 36.52%.
For the reasons for the performance growth, Guoyuan Securities Company Limited(000728) said, “the company accelerated the progress of investment banking projects, increased the sales of financial products, moderately increased the financial leverage, expanded the scale of assets and investment varieties, and realized a large year-on-year increase in revenue from fixed income investment, investment banking underwriting and other businesses.”
In this regard, Northeast Securities Co.Ltd(000686) Wang Fenghua, chief analyst of non bank finance, said: “under the background of the rapid development of China’s capital market and the orderly promotion of wealth management reform, individual stocks of securities companies, especially leading securities companies, will still achieve stable and rapid growth in 2021 on the basis of high performance base in 2020, and the prosperity of the sector is expected to continue to rise.”
For the market opportunities of listed securities companies, Huaxi Securities Co.Ltd(002926) institute director Wei Tao said: “after two weeks of adjustment, the overall price to book ratio of the securities sector is 1.61 times, lower than the average level in 2020 and 2021. At the same time, the roe level of securities companies has increased steadily. The mismatch between sector valuation and performance growth brings left allocation opportunities.”
securities subsidiary gradually becomes
performance “responsibility” of some listed companies
According to incomplete statistics by the reporter of Securities Daily, there are Sdic Capital Co.Ltd(600061) (Anxin securities), Xiangcai Co.Ltd(600095) (Xiangcai securities), Guosheng Financial Holding Inc(002670) (Guosheng securities), Harbin Hatou Investment Co.Ltd(600864) (Jianghai securities), Shanghai Chinafortune Co.Ltd(600621) (Huaxin securities), State Grid Yingda Co.Ltd(600517) (Yingda securities), Minmetals Capital Company Limited(600390) (Minmetals securities) Avic Industry-Finance Holdings Co.Ltd(600705) (AVIC securities) eight A-share listed companies have successively disclosed the performance of their securities subsidiaries in 2021 (all Unaudited). Different from the steady growth of the “regular army” performance of other listed securities companies, the performance of the above securities companies also have their own advantages.
In 2021, among the above eight securities companies, the wholly-owned subsidiary of Sdic Capital Co.Ltd(600061) Anxin securities had the highest overall performance income. Anxin securities achieved an operating income of RMB 12.339 billion and a net profit of RMB 4.262 billion, with a year-on-year increase of 5.03% and 21.37% respectively. Secondly, Huaxin securities, a wholly-owned subsidiary of Shanghai Chinafortune Co.Ltd(600621) , realized an operating revenue of 2.035 billion yuan and a net profit of 721 million yuan, with a year-on-year steady growth of 28.94% and 27.99% respectively. The performance of Guosheng securities, which has been in constant turmoil, was remarkable last year, with an operating revenue of 1.975 billion yuan and a net profit of 394 million yuan, with a year-on-year increase of 3.73% and 519.91% respectively.
Benefiting from the large increase in profits of Guosheng securities, a wholly-owned subsidiary, Guosheng Financial Holding Inc(002670) it is expected to turn losses into profits in 2021. Guosheng Financial Holding Inc(002670) said, “in 2021, the company’s primary task was to stabilize operation and prevent risks. All businesses operated stably and turned losses into profits. The main reasons for performance changes during the reporting period were the growth of net operating income, the increase of income from changes in fair value and the reversal of credit impairment losses affected by the stock market.”
In addition, in 2021, the performance and net profit of Jianghai securities, Yingda securities, Xiangcai securities and AVIC securities increased by 208.27%, 16.62%, 30.43% and 16.91% respectively year-on-year; Only the performance of Minmetals securities was unsatisfactory, with a net profit of 401 million yuan, a year-on-year decrease of 12.74%.
Under the background of the continuous improvement of the outlook and performance contribution of the securities industry, many listed companies have taken the improvement of securities business as the company’s core competitiveness, and the “heroic blood transfusion” of these securities companies’ subsidiaries has also led to the rapid development of such securities companies.
Meanwhile, Guodu securities, a securities company listed on the new third board, also disclosed the unaudited financial report of 2021 (compared with the unaudited financial report of 2020), realizing an operating revenue of RMB 1.617 billion, a year-on-year increase of 1.01%; The net profit was 748 million yuan, a year-on-year decrease of 2.6%.
