On January 25, Caitong Securities Co.Ltd(601108) issued two announcements in a row, one is the announcement of the pre increase of its performance in 2021, and the other is the announcement of the company on the resignation of the deputy general manager.
According to the announcement of Caitong Securities Co.Ltd(601108) , the net profit after deduction attributable to shareholders of listed companies is expected to be RMB 2.361 billion-2.59 billion in 2021, an increase of RMB 59 million-288 million compared with the same period of last year, a year-on-year increase of 3% – 13%.
Since the expected performance has not been audited by the Commission, there may be some differences with the results released in the final annual report.
However, compared with the listed securities companies that have issued the performance pre increase announcement, the performance growth rate of Caitong Securities Co.Ltd(601108) is a little lower.
Since January 2022, in addition to Caitong Securities Co.Ltd(601108) , 8 securities companies, including Zheshang Securities Co.Ltd(601878) , Central China Securities Co.Ltd(601375) , Guoyuan Securities Company Limited(000728) , Founder Securities Co.Ltd(601901) , Everbright Securities Company Limited(601788) , Guotai Junan Securities Co.Ltd(601211) , Northeast Securities Co.Ltd(000686) , Orient Securities Company Limited(600958) , have released the pre increase express report of 2021 annual performance.
For the above eight securities companies, the corresponding growth rate of net profit after deduction attributable to shareholders of Listed Companies in 2021 is 30-40%, 394.14-490.25%, 35.51%, 60-80%, 10.12%, 26.16%, 22.05% and 87-107% respectively.
In addition to Everbright Securities Company Limited(601788) the continuous provision of asset impairment and the pressure on the company’s profits in recent years due to the MPS event, many securities companies made a lot of profits in the new energy, cyclical stocks and other markets in 2021, and achieved a relatively large growth on the already good performance base in 2020.
In contrast, Caitong Securities Co.Ltd(601108) 3% – 13% of the performance growth rate is inferior among peers.
However, behind the low performance growth rate is that Caitong Securities Co.Ltd(601108) has increased its investment in business construction in recent years.
Caitong Securities Co.Ltd(601108) in the performance attribution, it is said that in 2021, the stock market recovered, the stock based trading volume increased, and the market activity increased significantly. The company closely focuses on the business strategic objectives, seizes market opportunities and actively promotes the development of various businesses; At the same time, we will actively deepen digital reform, accelerate network layout, and strengthen the construction of talent echelons in all lines. During the reporting period, wealth, investment banking, asset management and other businesses grew steadily.
At the end of 2020, Caitong Securities Co.Ltd(601108) announced its public offering of A-share convertible bonds, and planned to raise 3.8 billion yuan to supplement working capital and develop its main business. The money raised, Caitong Securities Co.Ltd(601108) will be invested in brokerage business, credit business, securities investment business, asset management business, investment banking, information technology, risk control and compliance, alternative subsidiaries, international business and other departments, which is quite promising for all-round development.
Specific actions include not only that the company’s Research Institute is about to introduce Li yuebo, a former star analyst, as the director of the Research Institute, but also that Caitong Securities Co.Ltd(601108) is expanding its outlets in the reverse direction under the background that many securities dealers continue to cancel their business departments and reduce the layout of offline outlets.
According to the disclosure of the company’s three periodic reports, as of the first half of 2020, the company has set up 141 securities branches; By the end of 2020, the number will be 145; By the first half of 2021, the number of branches of the company has increased to 149, of which both branches and business departments are growing.
At present, Caitong Securities Co.Ltd(601108) has shown its determination to vigorously develop its business to the market, but it remains to be seen whether it can achieve a good result in the end. After all, in 2021, its performance growth did not surprise the market, but significantly lost many securities companies.
In addition, also on January 25, Caitong Securities Co.Ltd(601108) announced that Fang Tiedao, deputy general manager of the company, applied to resign as deputy general manager of the company due to organizational transfer. After his resignation, Fang railway will no longer hold any position in the company.
According to media reports, Fang Tiedao, born in October 1980, Chinese nationality, without overseas permanent residency, has a master’s degree and an economist. He used to be the legal director of the office of Tianhe securities brokerage Co., Ltd., Caitong Securities Co.Ltd(601108) the legal director of the risk management department, the legal director of the compliance department, the assistant to the general manager of the compliance department, the manager of the Legal Affairs Department of the compliance department, the deputy general manager of the compliance department Director of the office of the board of directors and deputy director of the general manager’s office, employee director, deputy district (city) head of Fuyang district (city) of Hangzhou.
Before leaving Caitong Securities Co.Ltd(601108) , he served as a member of the Party committee, deputy general manager and director of the general office of the company, deputy director of the Youth Development Department of the Central Committee of the Communist Youth League of China, chairman of Yong’an futures and director of Zhejiang Zheshang Asset Management Co., Ltd.
In December 2021, Yong’an futures, an associated enterprise of Caitong Securities Co.Ltd(601108) also achieved A-share listing when Fang railway was the chairman of Yong’an futures. Caitong Securities Co.Ltd(601108) as the largest shareholder of Yong’an futures, the shareholding ratio after IPO is 30.18%.
In addition, two weeks ago, Caitong Securities Co.Ltd(601108) just announced the resignation of Chairman Lu Jianqiang. However, Lu Jianqiang, who joined Caitong Securities Co.Ltd(601108) in 2018, will be transferred to China Zheshang Bank Co.Ltd(601916) as secretary of the company’s Party committee after his resignation.
With the departure of the two important management layers of the company, whether Caitong Securities Co.Ltd(601108) in 2022 can develop according to the original established policies, or whether some business directions will linger due to the change of management is also the focus of market attention.
