More than 70% of securities companies achieved net profit growth in the first three quarters

● Hu Yu, a reporter of this newspaper

As of the evening of October 29, the third quarter report of A-share listed securities companies in 2021 has been disclosed. In the first three quarters, more than 70% of the securities companies' net profits increased year-on-year.

In the view of industry insiders, the A-share market is actively traded, the wealth management, investment business and institutional business of the securities industry are developing rapidly, the allocation of low-valued securities companies is relatively cost-effective, and the leading securities companies with outstanding comprehensive strength and listed securities companies with differentiated competitive advantages are worthy of attention.

The overall performance is eye-catching

In the first three quarters, the performance of listed securities companies was good, the operating income of 36 securities companies increased compared with the same period of the previous year, and the net profit attributable to the mother increased by 31 securities companies compared with the same period of the previous year, accounting for more than 70%.

From the perspective of revenue scale, CITIC Securities came out with 57.812 billion yuan, far surpassing other peers; Haitong Securities and Guotai Junan Securities ranked second and third with revenue scale of 34.839 billion yuan and 31.907 billion yuan respectively; Huatai Securities, GF Securities and China Galaxy all had revenue scales of more than 26 billion yuan in the first three quarters. From the perspective of revenue growth, Zheshang Securities ranked first in the industry with an increase of 70.32%, and the revenue of hongta securities, Pacific Securities, Zhongyuan Securities and Guolian Securities in the first three quarters increased by more than 50% year-on-year. Among the leading securities companies, China Galaxy, CITIC Securities, CITIC Construction Investment and CICC ranked high in terms of revenue growth in the first three quarters.

In terms of net profit, the largest scale is still CITIC Securities, its net profit attributable to the mother in the first three quarters of this year reached 17.645 billion yuan; Haitong Securities, Guotai Junan Securities, Huatai Securities in the first three quarters of this year the net profit attributable to the mother was more than 10 billion yuan, GF Securities, China Merchants Securities, CICC, China Galaxy, CITIC Construction Investment, Shenwan Hongyuan Securities, Guosen Securities in the first three quarters of this year The net profit attributable to the mother exceeded 5 billion yuan. From the perspective of net profit growth, the net profit attributable to Zhongyuan Securities and Pacific Securities in the first three quarters increased by 472.61% and 243.21% respectively, and the growth rate ranked high in Zhejiang Securities, Caida Securities and Guolian Securities. CICC's net profit attributable to the mother in the first three quarters increased by 52.39%, ranking first among the head brokers.

In the third quarter, the revenue of the head securities companies maintained steady growth, citic securities ranked first consecutively, with a revenue scale of 20.091 billion yuan; haitong securities and China Galaxy, with a revenue scale of more than 10 billion yuan, were 11.368 billion yuan and 10.963 billion yuan respectively. In addition, a total of 30 securities companies increased their revenue in the third quarter compared with the same period last year, of which Pacific Securities increased by nearly 100% year-on-year, and Zheshang Securities increased by more than 90% year-on-year.

In terms of net profit attributable to the mother, CITIC Securities is far ahead with a scale of 5.447 billion yuan, and the net profit attributable to the mother of Haitong Securities, Guotai Junan, Huatai Securities, China Galaxy and Guosen Securities all exceeds 3 billion yuan. Compared with the same period last year, 24 securities companies achieved growth in net profit attributable to the mother in the third quarter, and the net profit attributable to the mother of Zhongyuan Securities, Pacific Securities, Hongta Securities and Guolian Securities increased by more than 100% in the third quarter.

Layout along two main lines

In the past month, the brokerage index has pulled back, but in the eyes of industry insiders, the allocation value of the securities sector in the relatively low valuation and the basic orientation is outstanding.

Dai Zhifeng, director of Zhongtai Securities Research Institute, pointed out that since 2021, the market trading activity has increased, the scale of fund issuance has increased, the registration system has been steadily implemented, the prosperity of the securities industry has been significantly improved, and the overall performance is expected to be good in 2021.

Sun Jiageng, a non-bank financial analyst at Orient Securities, pointed out that the proportion of public positions in the securities sector (except Oriental Wealth) in the third quarter "bottomed out", which was the first time since the third quarter of 2019 that the top ten heavy stocks in the securities sector had significant capital increases.

Wang Yifeng, a non-bank financial analyst at Everbright Securities, believes that the current A-share market is actively traded, the wealth management, investment business and institutional business of the securities industry are developing rapidly, and the allocation of low-valued securities companies is more cost-effective. It is recommended to pay attention to two main lines: one is the leading securities companies with outstanding comprehensive strength and obvious "moat" advantages; the other is the securities companies with differentiated competitive advantages in the field of wealth management.

This article originated from China Securities News