Financial Associated Press (Shanghai, reporter Liu Chaofeng) news, the compass protruded the siege, won the Network Information Securities, which also made the "Xiaodongcai" call higher.
On February 10, Compass issued an announcement that the company was identified as an investor in the restructuring of Netinfo Securities. In the fierce competition with candidates such as Haomai Fortune, Shenyang Linlong and Ruida Futures, Compass finally stood out, but it still needs to reach an agreement with the creditors of Netinfo Securities on the bankruptcy reorganization plan and be approved by the court, and there is still uncertainty in this matter. If all goes well, Netinfo Securities will become a wholly owned subsidiary of Compass, opening up imagination for its business development.
Before the results could be seen, the stock market had reacted in advance, rising 22.37 percent in four trading days after compass years, including an 11.79 percent rise on Feb. 8. Compass is expected to become a "small East Cai", the current market value of Oriental Wealth is 333.1 billion yuan, of which securities services and fund sales services are the main business of Oriental Wealth, accounting for more than 90%.
CICC believes that if Compass eventually becomes an investor in the restructuring of Netinfo Securities, the company is expected to provide customers with one-stop integrated financial services and create a second growth curve.
Compass "Protruding Heavy Encirclement"
On February 10, the second interim creditors' meeting of the bankruptcy reorganization case of Netinfo Securities was held, the purpose of which was to select the reorganization investors and the reorganization investment plan, and the three companies of Compass, Haomai Fortune and Shenyang Linlong participated in the selection. In the evening, the manager of Netinfo Securities identified Compass as a reorganization investor.
Since The Reorganization of Netinfo Securities was ruled by the Shenyang Intermediate People's Court in July 2021, Netinfo Securities issued an announcement on the public recruitment and selection of reorganization investors the following month, officially opening the road of reorganization.
According to public information, so far, four companies, Compass, Haomai Wealth, Shenyang Linlong and Ruida Futures, have all participated in the selection of Netinfo Securities. During the period, Ruida Futures withdrew from the selection due to its own reasons. In the fierce competition, the compass finally stood out and became a restructuring investor in Netinfo Securities.
According to the announcement of compass, after the company becomes an investor in the restructuring of Netinfo Securities, it still needs to reach an agreement with the creditors of Netinfo Securities on the bankruptcy reorganization plan and obtain the approval of the court's ruling, which is still uncertain.
Before the results of the restructuring of investors came out, the compass stock price had already set off ahead of schedule. According to wind data, Compass rose 22.37% in four trading days after the year, including a single-day gain of 11.79% on February 8. As of the close of trading on Feb. 10, Compass was closing at $46.6, up 0.39 percent.
Brokerage licenses create the second growth curve of the compass
If all goes well with the reorganization plan, Netinfo Securities will become a wholly owned subsidiary of Compass. At present, Netinfo Securities has obtained qualifications for securities brokerage, self-operation, asset management, investment banking and other businesses, including fund sales, consignment sales of financial products and other subdivisions. Although Netinfo Securities has been at the bottom of its performance for many years, this securities license will bring great imagination to the development of compass business.
The outside world believes that compass won the securities license and is expected to become a "small east cai".
In 2015, Oriental Wealth acquired the unknown local securities company Tongxin Securities, won the brokerage license, the Internet company found a user realization channel, transformed into an Internet brokerage, online account opening, relying on channels and user advantages to make the brokerage business income of the brokerage business become the main income; on the basis of the daily fund network, as a brokerage company to further enhance the ability to sell funds.
According to the semi-annual report of Oriental Wealth, in the first half of 2020, Oriental Wealth achieved operating income of 3.338 billion yuan, an increase of 67.09% year-on-year; and net profit attributable to the mother was 1.809 billion yuan, an increase of 107.69% year-on-year. It is worth noting that securities services and financial e-commerce services are the main business of Oriental Wealth, and the two account for a total of 96.26% of the total revenue. The so-called financial e-commerce service business mainly provides users with fund third-party sales services through the daily fund network.
Previously, some analysts told reporters, "Compass and listed company Oriental Wealth are both similar and different in business. The compass should choose the optimal path according to its own actual situation and internal and external conditions, timing and other factors, of which scientific and technological capabilities will be a focus. ”
The above-mentioned analyst said, "Compass eventually became an investor in the restructuring of Netinfo Securities, which means the extension of customer service and the further growth of customer scale for Compass, and more efficiently provides customers with one-stop comprehensive financial services; for the future of Netinfo Securities, it means that the parent company can bring rapid growth in the scale of trading customers and the rapid replenishment of financial strength, so that Netinfo Securities can expand its business scale relatively quickly." ”
CICC believes that if Compass eventually becomes an investor in the restructuring of Netinfo Securities, the company is expected to provide customers with one-stop integrated financial services and create a second growth curve. However, there is still uncertainty about whether the company can become the ultimate reorganization investor and the subsequent business integration, on the other hand, most of the business of Netinfo Securities has been suspended, a large number of asset management products are overdue, and a large number of lawsuits and arbitrations are involved, and the intended reorganization investors must invest at least 1 billion yuan in the reorganization stage to repay the company's debts, and help resolve the business risks of Netinfo Securities, which brings certain pressure to its subsequent use of funds and operational integration.
Financial information revenue is the bulk
According to public information, Compass was founded in 2001, headquartered in Beijing, and was listed on the Shenzhen Growth Enterprise Market in 2019. Compass has the qualification to engage in securities investment consulting business, the main business is to use securities tool software terminals as the carrier, to provide investors with timely and professional financial data analysis and securities investment consulting services, while based on its own customer resources, traffic entrance advantages and marketing advantages, to expand advertising services business and insurance brokerage business. According to the research report of CICC, compass C-end financial information service revenue accounted for the majority, as high as 93.84%.
Compass's main customer group is professional individual investors, these customers are the most active investors in the securities market, and they are naturally trading customers of the securities company's business.
Compass's main business in the past ten years has been stable, continuously profitable, and maintained rapid growth. In the first half of 2021, Compass achieved operating income of 541 million yuan, an increase of 38.57% year-on-year; net profit attributable to the mother was 131 million yuan, an increase of 61.17% year-on-year.
In the annual report disclosure, Compass said that if the company is identified as the ultimate restructuring investor, it will use its rich financial-related business experience that matches the securities company, give full play to business synergy, create one-stop integrated financial services, and lay out the company's future business development.
CICC believes that Compass is the leading financial information data service provider for individual investors in China. In the short term, there are concerns about the company's customer acquisition costs and diversified monetization capabilities, and in the long run, Compass is expected to continue to consolidate the foundation of product research and development, meet the differentiated needs of customers, and then achieve steady development under the three-wheel drive of heavy experience sales, frequent iterative research and development, and business development. However, considering the rising trend of industry traffic costs and the uncertainty of the company's new business exploration, it may affect the release of the company's short-term performance.