Source: Diagram Worm
On the evening of March 26, CITIC Securities (600030. SH) disclosed its 2023 report card.
In 2023, CITIC Securities achieved operating income of 60.068 billion yuan, a year-on-year decrease of 7.74%, and net profit attributable to the parent company of 19.721 billion yuan, a year-on-year decrease of 7.49%. As of the end of 2023, its total assets reached 1,453.359 billion yuan, a year-on-year increase of 11.06%.
Investors are particularly concerned about the dividends of CITIC Securities. According to its 2023 profit distribution plan, it is planned to distribute 4.75 yuan (tax included) for every 10 shares, with a total cash dividend of 7.039 billion yuan, accounting for 36.67% of the company's distributable profit in 2023, an increase of 1.79 percentage points from 34.88% in the previous year.
However, in terms of the total amount of dividends, 2023 will be lower than in the past two years. In 2021 and 2022, CITIC Securities' total dividends will be 8.003 billion yuan and 7.262 billion yuan respectively. According to statistics, the cumulative dividend amount of the stock since its listing is 74.040 billion yuan, of which 63.967 billion yuan is a dividend of A shares and 10.074 billion yuan is a dividend of Hong Kong stocks.
Zhang Hao, CFO of CITIC Securities, said at the 2023 annual results conference that in the past three years, the company's dividend ratio has always remained above 30%, which is at a high level in the industry.
Since the beginning of this year, CITIC Securities' investment banking business has been performing poorly. As of March 25, CITIC Securities has withdrawn 7 IPO projects this year, including adopting a cow, Bona Precision, etc., ranking second among 31 sponsors.
In response to issues such as performance and investment banking business, Times Finance sent a letter of verification to CITIC Securities, but has not received a reply as of press time.
Only the performance of the securities investment business increased
Following 2022, CITIC Securities' revenue and net profit in 2023 will once again decline, but the overall decline has narrowed. Among them, the operating income of brokerage business, asset management business, securities underwriting business and other businesses all declined.
Source: CITIC Securities Annual Report
Specifically, in 2023, CITIC Securities' brokerage business will achieve operating income of 15.201 billion yuan, a year-on-year decrease of 7.81%, asset management business will achieve operating income of 10.846 billion yuan, a year-on-year decrease of 10.99%, securities underwriting business will achieve operating income of 6.246 billion yuan, a year-on-year decrease of 26.61%, and other businesses will achieve operating income of 8.380 billion yuan, a year-on-year decrease of 31.05%.
In 2023, only CITIC Securities' securities investment business will maintain growth, achieving operating income of 19.395 billion yuan, a year-on-year increase of 22.97%. The securities investment business is also the largest contributor to CITIC Securities' revenue, accounting for 32.29% of the revenue
As of the end of 2023, CITIC Securities' assets under management totaled 1.39 trillion yuan, including collective asset management plans, single asset management plans, and special asset management plans, with a scale of 297.704 billion yuan, 841.715 billion yuan, and 249.042 billion yuan, respectively. In addition, its private asset management business (excluding pension business, public offering products and asset securitization products) has a market share of 13.71%.
In terms of salary, Zhang Youjun, chairman of CITIC Securities, will receive a total pre-tax remuneration of 5.0472 million yuan from the company in 2023, compared with 5.6136 million yuan in the previous year, and Yang Minghui, general manager, will receive a total pre-tax remuneration of 5.2894 million yuan from the company in 2023, compared with 4.6935 million yuan in the previous year.
In addition, according to Choice data, in 2023, the average salary of employees of CITIC Securities will be 791,900 yuan, down from 836,400 yuan in 2022.
At present, CITIC Securities has wholly-owned subsidiaries such as CITIC Securities (Shandong), CITIC Securities International, Goldstone Investment, CITIC Futures, and CITIC Securities Asset Management, as well as China Asset Management, a holding subsidiary with 62.2% of the shares. Among them, CITIC Securities Asset Management will achieve an operating income of 168 million yuan and a net profit of 73.65 million yuan in 2023, and China Asset Management will achieve an operating income of 7.327 billion yuan and a net profit of 2.013 billion yuan in 2023.
Seven IPO projects have been voluntarily withdrawn this year
As a leader in the securities industry, CITIC Securities has obvious advantages in the field of investment banking.
In 2023, CITIC Securities will complete 140 A-share lead underwriting projects, with a lead underwriting scale of 277.913 billion yuan (cash and assets), with a market share of 24.50%, ranking first in the market. Among them, it has completed 34 IPO projects, with a lead underwriting scale of 50.033 billion yuan and a market share of 14.03%, ranking first in the market, and 106 refinancing projects, with a lead underwriting scale of 227.880 billion yuan and a market share of 29.29%, ranking first in the market.
Entering 2024, CITIC Securities' investment banking business has encountered obstacles. Wind data shows that as of March 25, CITIC Securities has a total of 31 IPO sponsorship projects in 2024, and 7 IPO projects have been voluntarily withdrawn, including adopting a cow, Han's Sealing and Testing, Hantong Integration, AVIC Petroleum, etc., with a project withdrawal rate of 22.58%.
In the same period of 2023, the number of sponsors of CITIC Securities will reach 80, and the number of IPOs will be voluntarily withdrawn by only 3, with a withdrawal rate of only 3.9%.
In addition, CITIC Securities' investment banking business violations are frequent. On the evening of March 22, the Shenzhen Stock Exchange disclosed that it had decided to launch on-site supervision of CITIC Securities, the sponsor of Liangang Optoelectronics. Specifically, after the initial listing application of Liangang Optoelectronics was accepted, the Shenzhen Stock Exchange issued three rounds of inquiries to it. In the second round of inquiry letters, the Shenzhen Stock Exchange pointed out that Liangang Optoelectronics "has a high proportion of shares held by the actual controller". Subsequently, Liangang Optoelectronics mentioned other cases of listed companies with a high proportion of shares held by the actual controller's family in its reply, trying to prove that a high shareholding ratio does not prevent listing.
As a sponsor, the verification opinion issued by CITIC Securities is consistent with the content of Liangang Optoelectronics' reply. The Shenzhen Stock Exchange believes that the content of the inquiry reply submitted by Liangang Optoelectronics and its sponsor CITIC Securities is not clear enough, and the issues involved cannot be fully explained, so it decided to enter CITIC Securities to initiate on-site supervision.
Prior to this, on March 15, the China Securities Regulatory Commission issued the "Opinions on Strictly Controlling the Access to Issuance and Listing and Improving the Quality of Listed Companies from the Source (Trial)", comprehensively and strictly strengthening the supervision of the issuance and listing activities of enterprises, tightening and consolidating the responsibilities of all relevant parties in the whole chain of issuance supervision, and maintaining a good issuance order and ecology.
Therefore, CITIC Securities became the first IPO sponsor brokerage to be initiated for on-site inspection after the issuance of the above-mentioned documents. Affected by this, CITIC Securities opened with a gap on March 25 and continued to fall throughout the day, closing at 19.5 yuan per share, down 4.88%. On the same day, CITIC Securities' Hong Kong stocks also fell 3.94%.