100 Billion + Refinancing Insight: The Return On Net Assets Of Half Of The Securities Companies Is Lower Than 6% And The Return Of Zhongyuan Securities Is Less Than 1% After Raising 3.6 Billion Yuan

Since 2020, listed securities companies have been intensively "invigorating blood", and the total scale of refinancing has exceeded 100 billion.

In the face of great changes in the industry, in order to further expand the scale of business, increase performance, cope with more fierce industry competition, build aircraft carrier level securities companies or characteristic securities companies, the demand for capital is very strong.

However, the 21st century economic report reporter survey found that after some securities companies refinanced capital, the company's performance was lower than that of the same period last year, and many shareholders involved in the refinancing also fell into floating losses.

"The future business development of securities companies will focus on capital intermediation and investment." Hu Yu, partner and research director of Shenzhen Chengnuo Asset Management Co., Ltd., believes that in the transition from light asset low leverage to heavy asset high leverage business model, the polarization of the securities industry has increased. At the peak period, the profit of securities companies will rise sharply. However, in the stage of large market fluctuation, it is not ruled out that some securities companies have a significant performance decline due to investment income and capital intermediary business It has fallen or even lost money.

On March 3, Zhongyuan securities closed at 4.66 yuan, which was lower than the fixed increase issue price. All the luxury shareholder groups participating in the additional issuance were given floating losses. Visual China

Zhongyuan securities fixed increase

In July 2020, Zhongyuan securities completed a fixed increase of 3.645 billion yuan.

According to the announcement, 18 issuers, including Gaoyi assets, CICC and CSCI, have subscribed for 774 million shares of the non-public offering at the price of 4.71 yuan per share.

Specifically, Gaoyi assets, which participated in the fixed increase, made the most generous offer, subscribing for 117 million shares, with a subscription amount of 549 million yuan; CICC second, subscribed for 91 million shares with a subscription amount of 430 million yuan; Guotai Junan subscribed for 83 million shares with a subscription amount of 390 million yuan.

Zhongyuan Securities said that the company urgently needs to strengthen its capital strength through non-public offering, further improve its market competitiveness, rely on its unique regional advantages, continuously improve its ability to serve the real economy and comprehensive services, enhance its profitability and anti risk ability, so as to promote the better and faster development of the company's business and bring more generous returns to all shareholders.

"After deducting the issuance expenses, the funds raised by this non-public offering are all intended to increase the company's capital, supplement working capital, expand the company's business scale, optimize the business structure, enhance the company's market competitiveness and anti risk ability, and provide capital guarantee for the sustained and rapid development of various businesses of the company. The company's business structure will not be significantly changed due to the non-public offering Change. " Zhongyuan Securities pointed out.

However, after the fundraising, the company's performance is not ideal.

According to the third quarter report of Zhongyuan securities in 2020, in the first nine months, the operating revenue was 2.21 billion yuan, an increase of 11.24% over the same period of last year. The net profit attributable to shareholders of listed companies was 86.75 million yuan, a decrease of 70.13% year-on-year.

In particular, the return on net assets was only 0.82%, significantly lower than 2.91% in the same period last year. It is also 1.75% lower than the one-year fixed deposit rate of state-owned banks.

Return on net assets (ROE) is one of the core indicators to measure the profitability and management level of listed companies.

Generally speaking, the higher the return on net assets is, the better, and the lower limit is not lower than the bank interest rate. For example, China Securities Regulatory Commission has clearly stipulated that the weighted average return on net assets of Listed Companies in public offering should not be less than 6%.

Zhongyuan Securities said that the decline in performance was affected by the fluctuation of capital market and the year-on-year decrease of self-employed and overseas business income; meanwhile, the provision for impairment of Zhongyuan securities increased year on year.

On March 3, Zhongyuan securities closed at 4.66 yuan, which was lower than the fixed increase issue price. All the luxury shareholder groups participating in the additional issuance were given floating losses.

Half of the securities companies' return on net assets after blood transfusion is less than 6%

2020 is a big year for securities companies to refinance. A total of 14 listed securities companies have implemented fixed increase and share allotment within the year, and the actual financing amount exceeds 100 billion yuan.

Among them, 8 listed securities companies, such as China Securities construction investment, Nanjing Securities and Haitong Securities, have raised a total of 69.4 billion yuan; six securities companies, including China Merchants Securities, Guoyuan securities and Shanxi securities, have issued shares, raising a total of 37.2 billion yuan.

According to the statistics of the 21st century economic report, in addition to Zhongyuan securities, the return on net assets of seven securities, including Southwest Securities, first venture capital, Guoyuan securities, Shanxi securities and Tianfeng securities, was less than 6% in the first three quarters.

Hu Yu, partner and research director of Shenzhen Chengnuo Asset Management Co., Ltd., believes that shareholders should be looking forward to the development opportunities of the capital market in the future. "First, the great development of the capital market is conducive to the development of securities business; second, the growth point of securities companies' profits has not been fully released. For example, t + 0, such as wealth management, is still the eve of the bull market. It is expected that after 2023, the securities industry will usher in explosive growth. ".

Tianfeng Securities believes that, referring to the experience of the United States, leverage ratio is the core indicator to determine roe. The leverage ratio of Chinese securities companies is in an increasing period (similar to 1975-1990 of the US Securities Industry). The policy changes and business development of capital intermediary business and institutional trading business (based on ficc and derivatives) are worth looking forward to.

Huachuang Securities said that the market expansion combined with the acceleration of capital market reform process, the market system and mechanism will continue to improve. Looking forward to the future, trading business is expected to become an important factor driving the rise of roe of securities companies. Referring to the development process of Goldman Sachs Group from 2000 to 2007, head brokers with strong capital strength, good institutional business, strict risk control, excellent research and pricing and sales ability, and wide financing channels will be likely to expand the scale of trading business to drive the continuous improvement of roe.

It is worth mentioning that in the first three quarters, the roe of Dongfang fortune was 14.26%, ranking first in the industry. Its share price also reflects the intrinsic value of the company to a certain extent. Dongfang fortune closed at 31.8 yuan on March 3, up 3.48%.

There are still 50 billion on the way

In 2021, the refinancing of securities companies will speed up again.

Guohai Securities, Dongxing securities, Guolian securities and CITIC Securities successively put forward refinancing plans, with a total amount of no more than 49 billion yuan, nearly half of the total amount of refinancing last year.

CITIC Securities said that after deducting the issuance costs, the 28 billion yuan raised in the rights issue will be used for four businesses: the planned investment of no more than 19 billion yuan for the development of capital intermediary business; increasing investment in subsidiaries, strengthening the construction of information systems and supplementing other working capital.

To supplement the development of capital intermediary business in such a large amount, CITIC Securities believes that "capital intermediary business has the characteristics of extensive customers, rich products, stable interest spread and controllable risk, which is the business direction of the company in recent years. The company has established a strong competitive advantage in the field of capital intermediary business, and its business scale is in the leading position in the industry Innovative capital intermediary business such as rights derivatives has become an important business growth point of the company. "

Statistics also show that, in the refinancing of securities companies last year, expanding the scale of investment and trading business, developing capital intermediary business and increasing capital subsidiaries were the main investment directions for securities companies to raise funds.

There are also securities companies to raise funds for other businesses, such as investment banking, information system construction or business network construction.

"The use cost of internal funds of securities companies is relatively high." A securities firm in charge of investment banking business related feedback, for the new company raised funds, the Department demand is small.

In this regard, industry insiders pointed out that listed securities companies implementing fixed increase should focus on the main business of the company to become bigger and stronger. After the completion of fixed increase, they should use funds reasonably. It is suggested that small and medium-sized securities companies should differentiate themselves, conduct dislocation competition and find new growth points.

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