Yangtze River Business Daily reporter Cai Jia
The prosperity of the securities industry continues to improve, and Hualin Securities (002945. SZ) unexpectedly upset.
According to the third quarterly report, in the first three quarters of this year, Hualin Securities achieved operating income of 1.064 billion yuan, down 7.67% year-on-year; net profit of 481 million yuan fell by 27.2% year-on-year. In the first half of this year, Hualin Securities still achieved a net profit of 412 million yuan, an increase of 44.93% year-on-year, but the company's net profit in the third quarter was only 286 million yuan and 68.4357 million yuan, down 50.54% and 81.8% year-on-year, dragging down the overall performance.
The reporter of Changjiang Business Daily combed and found that with the further improvement of market trading activity, the prosperity of the securities industry has heated up. As of October 29, of the 50 securities companies that have released three quarterly reports, 37 have positive net profit growth year-on-year, and 32 have a performance growth rate of more than 10%, accounting for more than 64%.
Affected by the structural trend of the market in the third quarter, the sharp decline in investment income was the main reason for the performance of Hualin Securities. In the first three quarters of this year, the company's investment income was -70.1316 million yuan, down 150% from 140 million yuan in the same period of the previous year, of which the investment income in the third quarter was -89.3511 million yuan.
In addition, since Wei Hongbo, former vice president and chief financial technology officer of Changjiang Securities, officially joined the company a few months ago, Hualin Securities seems to have strengthened its determination to break through in digital transformation, and has greatly strengthened its investment in information technology, resulting in short-term profitability under pressure. According to the company, as of the end of September, the company's information technology investment was about 160 million yuan, of which nearly 100 million yuan was invested in information technology in the third quarter.
60% of listed securities companies' net profit growth rate of more than 10%
In the third quarter of this year, the market trading activity was further enhanced, the stock base trading volume exceeded one trillion yuan for 49 consecutive trading days, and the Beijing Stock Exchange was planned to be established, and the reform of the registration system was further advanced, which promoted the prosperity of the securities industry.
Judging from the three quarterly reports disclosed by listed securities companies, the performance of securities companies is polarized, and the trend of Heng and Hengqiang is becoming more and more obvious.
According to the incomplete statistics of the Yangtze River Business Daily reporter, as of October 29, 37 of the 50 securities companies that have released three quarterly reports have a positive net profit year-on-year growth, and 32 have a performance growth rate of more than 10%, accounting for more than 64%.
Among them, the highest growth rate of net profit was Zhongyuan Securities, Guosheng Financial Holdings and Pacific, with net profits of 497 million yuan, 197 million yuan and 340 million yuan respectively, an increase of 472.61%, 345.91% and 243.21% year-on-year.
Among the leading securities companies, CICC, CITIC Securities, Haitong Securities, Guotai Junan, Huatai Securities and China Merchants Securities achieved operating income of 21.69 billion yuan, 57.81 billion yuan, 34.84 billion yuan, 31.91 billion yuan, 26.91 billion yuan and 21.78 billion yuan respectively, an increase of 29.08%, 37.66%, 23.31%, 23.97%, 10.57% and 21.67% respectively; net profit of 7.454 billion yuan, 17.65 billion yuan, 11.83 billion yuan, 11.64 billion yuan, 11.05 billion yuan and 8.501 billion yuan, an increase of 52.39%, 39.37%, 39.1%, 29.97%, 25% and 16.92% year-on-year, and the performance growth rate exceeded double digits.
Oriental Wealth, known as "coupon Mao", exceeded expectations again, achieving operating income of 9.636 billion yuan in the first three quarters, an increase of 62.07% year-on-year; net profit of 6.234 billion yuan, an increase of 83.48% year-on-year.
Bo Xiaoxu of AVIC Securities analyzed that with the increase in the proportion of heavy asset business in the revenue of securities companies, small and medium-sized securities companies are more likely to be affected by market fluctuations, while head securities companies with strong investment and research strength and strong capital strength are more benefited.
BOC Securities also pointed out that in the context of the general trend of wealth management and the differentiation of this year's performance, it is expected that the growth and performance stability of wealth management characteristics and leading securities companies will be stronger, and it will be easier to enjoy the valuation premium. Leading securities companies have stronger comprehensive financing service capabilities and are expected to benefit from the continuous promotion of capital market reform.
But on the other hand, there are also 13 listed securities companies in the first three quarters of the net profit decline to varying degrees, including the head securities company CITIC Construction Investment, during the reporting period, CITIC Construction Investment achieved operating income of 20.61 billion yuan, an increase of 29.96% year-on-year; net profit of 7.258 billion yuan, a year-on-year decrease of 3.11%.
In addition, the securities companies whose net profit fell by more than 10% in the first three quarters were Shanxi Securities, Guohai Securities, Hualin Securities, Huaxin Shares and Jinlong Shares.
Affected by market conditions, investment income fell sharply
Among the securities companies that took the lead in disclosing the three quarterly reports, the sudden explosion of Hualin Securities surprised the market.
The reporter of Changjiang Business Daily noted that in recent years, with the deepening of capital market reform, the market heat has continued to increase, and the profitability of Hualin Securities, as a small and medium-sized securities company, has grown steadily in the general environment.
In 2019 and 2020, Hualin Securities achieved operating income of 1.011 billion yuan and 1.49 billion yuan respectively, an increase of 0.98% and 47.42% year-on-year, and net profit of 442 million yuan and 812 million yuan, an increase of 28.14% and 83.96% year-on-year.
In the first half of this year, the performance of Hualin Securities was still stable, and the company achieved operating income of 778 million yuan during the reporting period, an increase of 35.45% year-on-year; net profit of 412 million yuan, an increase of 44.93% year-on-year, of which the net profit in the second quarter was 228 million yuan, an increase of 93.18% year-on-year.
However, in the third quarter, the performance of Hualin Securities fell sharply, with single-quarter revenue and net profit of 286 million yuan and 68.4357 million yuan, down 50.54% and 81.8% year-on-year, respectively, and down 31% and 70% from the second quarter of the previous quarter, dragging down the company's operating income and net profit in the first three quarters by 7.67% and 27.2% to 1.064 billion yuan and 481 million yuan, respectively.
The reporter of Changjiang Business Daily combed and found that from the perspective of income, due to the increase in underwriting business in the first three quarters, hualin securities investment banking business achieved a net fee income of 206 million yuan during the reporting period, an increase of 77.04% year-on-year, becoming the shining point in the third quarterly report of Hualin Securities. However, at the same time, the net fee income of Hualin Securities' asset management business in the first three quarters fell by 42.57% year-on-year to 20.975 million yuan.
Investment income is one of the main reasons for the decline in the company's profits. Due to the decrease in the profit of the derivatives business in the current period, the investment income of Hualin Securities in the first three quarters turned from profit to loss to -70.1316 million yuan, down 150% from 140 million yuan in the same period of the previous year. In the first half of this year, the company's investment income was 19.2195 million yuan, an increase of 10.75% year-on-year, which was estimated to be -89.3511 million yuan in the third quarter of Hualin Securities.
"The company's investment income loss during the reporting period was mainly due to the structural conditions of the domestic stock market and the reduction in the profit of the derivatives business, and the company has settled the relevant investments, although it has affected the financial performance of the reporting period, but this move will help the company to seize the opportunity to adjust the portfolio and prepare for the fourth quarter of light loading." Hualin Securities explained on the public platform.
In addition, due to the fluctuation of the fair value of proprietary stocks and derivatives, the fair value change income of Hualin Securities in the first three quarters was 94.7695 million yuan, down 58.44% from 228 million yuan in the same period of the previous year.
At the same time, on the expense side, the business and management fees of Hualin Securities in the first three quarters were 530 million yuan, an increase of 32.63% year-on-year. Hualin Securities introduced that in order to better promote the company's strategic transformation of science and technology finance, it has continued to increase investment in information technology and the introduction of scientific and technological talents, and as of the end of September this year, the company's information technology investment was about 160 million yuan, of which nearly 100 million yuan was invested in information technology in the third quarter.
It is worth mentioning that in June this year, Wei Hongbo, former vice president and chief financial technology officer of Changjiang Securities, officially joined Hualin Securities as the president and chairman of the executive committee of the company. At that time, Lin Li, the actual controller and chairman of Hualin Securities, sent a letter to all employees for the first time to strengthen the determination of the strategic transformation of the Internet.
In August, Hualin Securities comprehensively upgraded the company's organizational structure and formed a three-line management model of functional control line, science and technology financial line and traditional business line, aiming to promote the company's Internet strategic transformation and improve business operation efficiency.