The First Batch Of Eight Brokerages Annual Reports Outline "Danger And Opportunity", And 16 Billion 700 Million Of Self Financing Takes The Lead. The Scale Of Investment Management Climbed Nearly 80%.

With the advent of the intensive disclosure of annual reports, the first batch of 2019 transcripts issued by listed securities companies came out one after another.

On the evening of February 26th, CITIC and Haitong Securities announced the annual report of 2019, plus the CITIC Securities and Guotai Junan Securities Brokers who had completed the annual report. Up to now, 8 listed brokerages have released their transcripts in 2019.

Benefiting from the 2019 capital market reform and the significant rebound in A shares, eight listed brokerages, without exception, have achieved double growth in revenue and net profit.

The eight listed brokerages realized a total operating income of 145 billion 490 million yuan, up 29.81% from 2018, and realized net profit of 43 billion 927 million yuan, an increase of 42.87% over the same period last year.

Combined with the performance bulletin, performance notice and monthly data released by some listed brokerages, a large number of brokerages in 2019 achieved stable growth in performance. Twenty-first Century economic news reporter noted that self investment, brokerage, investment banking and other business growth is the main driving force for the high performance of the securities dealers in 2019.

He Nanye, a special researcher at Suning Financial Research Institute, said: "in 2019, the self business revenue has achieved explosive growth, mainly due to a substantial rebound in the stock market in the first quarter of 2019 and a slight upward trend in the stock market at the end of 2019." many companies, especially the head broker, have made huge profits from the "Chuang Chuang" board business. Interest income generated by ticket pledge business and margin trading has also become one of the major sources of income for major brokerages in 2019.

Substantial growth in proprietary business

In the 8 annual reports that have been disclosed, there is no loss or decline in performance, but the industry structure has been set, and the scale of business of big brokerages is far greater than that of small and medium-sized brokerages.

CITIC Securities sat firmly on the throne of "one brother", ranking the top of 43 billion 140 million yuan business income, an increase of 15.90% over the same period last year, a net profit of 12 billion 648 million yuan, an increase of 28.07% over the same period last year, followed by Haitong Securities, operating income of 34 billion 429 million yuan in 2019, an increase of 44.87% over the same period last year, and net profit of 9 billion 523 million yuan, an increase of 82.75% over the same period last year.

Twenty-first Century economic report reporters statistics found that, in specific terms, has disclosed annual reports of listed brokerages, 2019 self investment business is the main source of revenue brokerage, and most listed brokerage business growth of the strongest business segment.

Specifically, CITIC Securities realized self business revenue of 16 billion 700 million yuan in 2019, an increase of 98% over the same period last year, the largest source of revenue for the company. The revenue of Guotai Junan, Zhongyin international, Guoxin Securities and Zhejiang Merchants Securities was 7 billion 311 million yuan, 207 million yuan, 2 billion 971 million yuan and 838 million yuan, respectively, up 54%, 71.21%, 199.67% and 76.86% respectively.

"Because the stock market performed well last year, including the two tier market and the stock index volume, it was a fact that the 2019 business performance rose year after year. The growth of proprietary business is also related to the stock market. Now, most of the self-employed companies have taken up the first place in the brokerage business and have made great contributions to the business performance of the coupons. In March 26th, a non banking analyst of a small and medium-sized brokerage in the central region was interviewed.

In addition, benefiting from the launch of the science and technology board, many brokerage firms, especially large brokerage firms, have made remarkable achievements in investment banking. CITIC Securities, Guotai Junan, Guoxin Securities and Haitong Securities respectively realized investment banking revenue of 4 billion 470 million yuan, 2 billion 593 million yuan, 593 million yuan, and 3 billion 457 million yuan, up 23%, 29%, 127.52% and 7.44%, respectively.

However, compared with the business of investment banks, self operated companies, which can better reflect the core competitiveness of securities companies, traditional brokerage business still occupies most of the revenue of most brokerages, but its influence is declining.

The most typical example is Zheshang securities. In 2019, the number of accounts opened and the net income of agency transactions increased the revenue of the company's brokerage business by 24.08% to 1 billion 11 million yuan over the same period. However, the gross profit margin of the business declined for three consecutive years, and the gross margin of brokerage business in 2019 was 26.29%, down 2.38 percentage points from 2018.

Although the revenue of Guoxin Securities is still from the brokerage business, its share of total revenue has declined by 6 percentage points compared with 2018, and its profit contribution has been the first super brokerage business in 6 years, and has become the first source of its 2019 profit.

"On the one hand, the reason for this is intense competition, and the brokerage fee rates of all major brokerages continue to decline, which makes the margin of brokerage business narrowed. On the other hand, the reason is that the stock market in 2019 has been slightly warmer, but the overall market volatility is still between 2800 -3200 points, and the market is still not optimistic enough, making the volume of transactions still inactive and the new investors in the market are not large, making the brokerage business revenue occupy the camp. The proportion of income declined. " He Nanye said.

Active management scale rising

It is worth mentioning that, in 2019, after the new regulation of information management impact on the operation of a significant setback of the brokerage business is gradually returned to the blood.

In twenty-first Century, the economic news reporter noted that although the overall size of the securities and information management industry has shrunk significantly, some big brokerages successfully broke through with the advantage of active management in the background of the gradual establishment of the "big capital management" pattern, and added a color to the 2019 annual report.

Haitong Securities 2019 net asset management business income of 2 billion 395 million yuan, an increase of 24.43% over the same period, mainly due to the rapid growth of the active management of the management company, the assets management scale of Guotai Junan information management has reached 697 billion 400 million yuan, of which the active management asset scale is 4. 20 billion yuan, an increase of 35.2% over the same period, and the assets management business of Zhejiang Merchants Securities also achieved an income of 383 million yuan, an increase of 45.38% over the same period last year.

CITIC Securities's information management scale has been ranked first in the industry for many years. The management scale reached 1 trillion and 400 billion yuan at the end of the year.

Not long ago, the China Association for basic cooperation has just disclosed the ranking of information management business in the four quarter of 2019. In the fourth quarter of 2019, the total number of private equity managers of the top 20 companies in the fourth quarter of 2019 totaled 6 trillion and 870 billion yuan, and the average monthly assets of the initiative management assets were 2 trillion and 910 billion yuan, representing a decrease of 2 trillion and 490 billion yuan and 131 billion 200 million yuan respectively, with a decrease of 26.58% and 4.31% respectively.

However, under such a decline, there are still 8 active management of the monthly average scale growth, including investment management active management scale increased by nearly 80%, and the management scale of the imperial management and Haitong management increased by more than 30%. In addition, the top 20 initiative management scale accounted for the first time to exceed 40%.

The Great Wall securities non bank financial group believes that the new securities law clearly defines the unity of asset management business, and the competition will intensify. "Under the supervision of large capital management, the management and supervision of different industries should go to the unified supervision and function supervision of large capital management. Every revision of the law involves the adjustment of this sub item, and the securities law is the first regulation."

Potential risk of pledge

It is worth mentioning that in the steady growth of business and smooth operation, the risks of some businesses are also quietly hidden. Among them, the risk of stock pledge is still in the credit intermediary business, and many commercial performance of the coupon is being dragged down.

For example, Guotai Junan, in 2019, the company made a loss of 2 billion 49 million yuan in credit impairment, of which 1 billion 40 million yuan came from the equity pledge business, mainly due to the increase in the quality of the stock that was less than 100% of the performance guarantee and overdue for more than 90 days. At the end of 2019, the book value of this part of the assets was 4 billion 860 million yuan, accounting for 16.1% of the total scale of the stock pledge, and the proportion of performance guarantee was 74.6%, which had accumulated 22.. 500 million allowance for impairment.

Although the credit business of Guoxin Securities is still the third largest source of profit in 2019, this data has reached the lowest level in the past 3 years, and the decline in the profitability of the credit business is related to the 609 million yuan of assets impairment provision of the stock pledge repurchase business.

According to incomplete statistics of the twenty-first Century economic report, in addition to the above enterprises, a number of listed companies such as Western securities, first venture, Changjiang Securities, Southwest Securities and other listed companies also issued notice of impairment provision, most of which are pledge business.

"Since 2018, a number of securities companies have taken the initiative to adjust the position of stock pledge repurchase business, take measures to carry out incremental business prudently, and the stock size of stock pledge business has continued to decline, but stock pledge has become an important source of asset impairment, and attention must be paid to it." The Great Wall securities non silver financial team pointed out.

However, there are also some people who believe that the risk of stock pledge should not be too much concern. The former non bank analysts think: "the most dangerous moment of stock pledge business has passed, now it is more adequate, and the scale of pledge has not been so large; moreover, after 2018, the pledge business of brokerages is very cautious."

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