Recently, the performance express or performance forecast of listed securities companies in 2021 has been released gradually. As of January 20, when the reporter of China Securities Journal published the report, Citic Securities Company Limited(600030) , Everbright Securities Company Limited(601788) , Guolian Securities Co.Ltd(601456) and other seven securities companies have disclosed their report cards, and the net profit attributable to the parent company has increased by more than 30%. The long-term allocation value of the securities sector is favored by institutions. Since this week, the securities sector has continued to pick up, and the Shenwan securities industry index has ushered in four consecutive positive days.
market development boosts performance growth
On the evening of January 20, Everbright Securities Company Limited(601788) issued the announcement of annual performance increase in 2021. The company expects to achieve an operating revenue of 16.705 billion yuan in 2021, with a year-on-year increase of 5%; The net profit attributable to the shareholders of the parent company was 3.501 billion yuan, a year-on-year increase of 50%.
Including Everbright Securities Company Limited(601788) , seven A-share listed securities companies have disclosed the performance express or performance forecast in 2021, which has continued the trend of high performance growth since 2020, and the year-on-year increase of net profit has exceeded 30%.
Citic Securities Company Limited(600030) the performance express shows that the operating revenue will reach 76.570 billion yuan in 2021, with a year-on-year increase of 40.80%; The net profit attributable to shareholders of the parent company was 22.979 billion yuan, a year-on-year increase of 54.20%. Citic Securities Company Limited(600030) said that China’s economy overcame the impact of the epidemic and continued to improve. The capital market developed vigorously. The company’s investment banking, asset management and other businesses developed in a balanced and steady manner in 2021.
It is found that the “vigorous development of capital market” is the resonance of listed securities companies that have disclosed their 2021 transcripts. Zheshang Securities Co.Ltd(601878) in 2021, the net profit attributable to shareholders of the parent company is expected to reach RMB 2.115 billion to RMB 2.278 billion, with a year-on-year increase of 30% – 40%. The company said that China’s capital market was booming in 2021. The company actively grasped the market opportunities, continuously improved its core competitiveness and steadily developed its businesses, so as to realize the steady growth of net profit attributable to shareholders of listed companies.
Compared with the comprehensive advantages of head securities companies in multiple business lines, small and medium-sized securities companies looking for and cultivating differentiated competitive advantages has become one of the industry development priorities in recent years. In the published performance express or performance forecast, some securities companies explicitly mentioned the contribution of segment business development to the company’s performance.
Guolian Securities Co.Ltd(601456) the performance forecast shows that the net profit attributable to the shareholders of the parent company is expected to be RMB 880 million in 2021, with a year-on-year increase of 49.72%. Guolian Securities Co.Ltd(601456) said that the overall activity of China’s securities market increased in 2021. The company actively grasped the market opportunities, continued to optimize the customer service system, significantly improved the capital scale and operation ability, the pan wealth management system was taking shape, the business structure was more diversified, and the profitability of the company continued to increase.
Guoyuan Securities Company Limited(000728) in 2021, the operating revenue was 6.076 billion yuan, a year-on-year increase of 34.18%; The net profit attributable to shareholders of the parent company was 1.87 billion yuan, a year-on-year increase of 36.52%.
valuation attractive
Since mid September 2021, the brokerage sector has continued to fluctuate downward. With the continuous improvement of industry fundamentals and the decline of sector valuation, its layout value has attracted more and more attention from institutions.
According to the data, on January 20, the three major stock indexes of A-Shares in Shanghai and Shenzhen closed down in shock, but the brokerage sector strengthened against the trend. As of the closing, the Shenwan securities industry index rose 1.62%, and the daily K-line gained four consecutive positive results. In terms of individual stocks, Chinalin Securities Co.Ltd(002945) rose by the limit, China Greatwall Securities Co.Ltd(002939) rose by more than 7%, and Guotai Junan Securities Co.Ltd(601211) , Huatai Securities Co.Ltd(601688) , Gf Securities Co.Ltd(000776) rose by more than 3%.
Hu Xiang, a non bank analyst, pointed out that the recent series of policies to promote the construction of securities companies and capital markets are good for ficc business, wealth management and the industrial chain of large investment banks. At present, the profit of securities companies continues to reach a new high, and the return on net assets has been close to the bull market level from 2015 to 2016, but its valuation is still in the quarter of the historical valuation, so it is optimistic about the long-term allocation value of securities companies.
Gao Gao, a non bank financial analyst at Kaiyuan securities, believes that the landing of interest rate cuts has released a clear signal of steady growth, which is conducive to the improvement of risk appetite in the equity market, and brokerage stocks will benefit significantly. In terms of configuration, the current valuation of big wealth management track has a safety margin, and the valuation will be revised after the confirmation of profit growth; The comprehensive registration system reform is good for head securities companies. At present, the valuation of head securities companies is at a low point in recent three years, and they are optimistic about its valuation repair.
