Brokerages have disclosed the 2019 performance KuaiBao, the overall performance is good, the specific reasons are different, highlighting the different resource endowments of each brokerage, but also foreshadowing the future development potential.

On the evening of the 16th, CSC FINANCIAL CO.,LTD issued a pre-increase announcement of 2019 performance and annual performance KuaiBao. According to preliminary estimates, the company's operating income was 13.693 billion yuan, an increase of 25.54 percent over the same period last year, and its net profit was 5.502 billion yuan, an increase of 78.19 percent over the same period last year. On the evening of the 17th, Caitong Securities and Soochow Securities issued pre-increase announcements one after another. The annual net profit of returning home exceeded 120% compared with the same period last year, and the net profit of Northeast Securities increased by more than twice. So far, at least 16 brokerages have disclosed their performance in 2019.

Under the influence of capital market reform, normalization of IPO issuance, market recovery and other factors, the overall performance of securities firms in 2019 is better than 2018. Combing found that when the overall improvement, the highlights of the performance growth of various brokerages are slightly different. For example, among the big brokerages, the investment banking business and investment business of CITIC Construction and CITIC have increased significantly compared with the same period last year; small and medium-sized brokerages are developing some small and beautiful businesses in the process of overtaking in the curve. Hualin Securities asset management and collection business has increased significantly compared with the same period last year, and the number of people recommended to list on the new third board of open-source securities ranks first in the industry.

Brokerage, investment banking, proprietary business thickens CITIC Construction Investment performance

As a large securities firm ranked among the top 10 in the industry, its net profit for the whole year has increased by nearly 80%, which should be a very eye-catching achievement. CSC FINANCIAL CO.,LTD stated in the reasons for performance growth that during the reporting period, the company actively seized market opportunities and various businesses developed well. The main business income, such as the net income of brokerage fees, investment banking fees and proprietary investment business, all increased significantly compared with the same period last year.

Under the joint action of factors such as the opening of capital market reform and the normalization of IPO issuance in 2019, the investment banking business of securities firms is very positive. For CITIC Construction Investment, its underwriting sponsor Science and Technology Innovation Board enterprise once ranked first in the industry, attracted the attention of the market, and the main underwriting income increased significantly throughout the year. According to wind, CSC FINANCIAL CO.,LTD ranks third in the industry with main underwriting income of 917 million yuan, up 47% from 622 million yuan in 2018, which is indeed a substantial increase, with a market share of 7.06%, slightly lower than in 2018.

Specifically, CSC FINANCIAL CO.,LTD has participated in the IPO underwriting of 22 enterprises, of which 9 Science and Technology Innovation Board enterprises have participated in the underwriting. Tianyi Shangjia, Xinguang Optoelectronics, China Electric Research and other projects have respectively contributed about 70 million of the underwriting and sponsorship fees for CCIC.

In terms of the amount of underwriting recommended by the initial public offering, CSC FINANCIAL CO.,LTD participated in the initial public offering and raised a total of 17.573 billion yuan, ranking third in the industry; as lead underwriter, the additional offering raised 17.028 billion yuan, ranking second in the industry; and 55.355 billion yuan as financial consultant, ranking fifth in the industry.

It can be predicted that Citic Construction Investment Bank will also perform well in 2020. On January 16, the Beijing-Shanghai high-speed railway officially landed on the Shanghai Stock Exchange, with an eye-catching performance that day, up 38%, with a turnover of 9.171 billion yuan. This is an IPO that can make it into the top 10 of A-shares, raising a total of 30.6 billion yuan. Citic Construction Investment is the sponsor and lead underwriter of the Beijing-Shanghai high-speed railway, which will be of great benefit to Citic Construction Investment Bank's ranking of underwriting in 2020.

In addition, the projects under review represent the performance of the new year to a large extent. By the end of 2019, CSC FINANCIAL CO.,LTD ranked first in 39 projects under review, and was the only sponsor institution with more than 30 projects under review. In terms of the audit phase, 28 projects have been updated in advance and will be held soon; 5 projects are in the feedback stage, and 4 projects are currently in the review stage.

Due to Citic Construction Investment's excellent performance in the investment banking business and good expectations, CITIC Construction Investment A shares are on the rise. According to last year's market, CITIC Construction Investment A shares are the brokerage stocks with the highest growth, up 2.6 times for the whole year, ranking 25th among all A shares. Because of its small market capitalization and large flexibility, Citic Construction Investment has been favored by the market since it landed on A-shares, but by the end of 2019, its A / H-share premium rate had reached 405%, while most other brokerages in the industry had a premium rate of about 100%.

By the end of 2019, CSC FINANCIAL CO.,LTD 's total assets were 285.67 billion yuan, an increase of 46.44% over the same period last year; the owner's equity belonging to the shareholders of the parent company was 56.582 billion yuan, an increase of 18.93% over the same period last year. At present, the company's asset structure is good, liquidity is strong, asset quality is good, and various risk control indicators meet the requirements of the risk Control Index Management measures of Securities companies.

The net profit of 16 securities firms increased significantly compared with the same period last year, and the growth of brokerage business is the common reason.

On the evening of the 17th, Caitong Securities issued a pre-performance announcement and 2019 performance KuaiBao. The company's annual operating income was 4.94 billion yuan, an increase of 55.95% over the same period last year. The net profit attributed to shareholders of listed companies was 1.86 billion yuan, an increase of 127.17% over the same period last year. Among them, securities investment business income, investment banking income, asset management business income increased significantly over the same period last year.

On the same day, Soochow Securities issued a pre-increase announcement that the annual return net profit is expected to be between 10 and 1.1 billion, with a year-on-year increase of about 179% and 206.91%. The reason is that the company seizes the market opportunity and insists on value investment. the securities investment business has achieved good returns, and the brokerage business income industry has grown significantly.

Northeast Securities also released the results of KuaiBao, the company's operating income of 7.759 billion yuan, an increase of 14.44% over the same period last year, and a net profit of 1.005 billion yuan, an increase of 233.63% over the same period last year. Except for the slight decline in income from credit trading business and asset management business, the income from other main businesses increased by different degrees compared with the same period last year.

As mentioned above, under the influence of capital market reform, normalization of IPO issuance, market performance and other factors, the overall performance of securities firms in 2019 is better than 2018. To the evening of the 17th, a total of 16 brokerages disclosed their performance in 2019, and their annual net profits all increased compared with the same period last year.

The income of securities brokerage business has generally increased significantly, which is the common reason for the good performance of various securities firms. In 2019, the overall market picked up, with the Shanghai Composite Index rising from 2440 points to more than 3000 points, an overall increase of 23.71% and an amplitude of 34%. The Shenzhen Composite Index and the gem Index rose 44.08% and 43.79% respectively for the whole year, ranking second and third among the major stock indexes in the world. As an important indicator of the extent of the market boom, the balance of the two financial institutions broke through the trillion mark again at the end of 2019, rising from 755.7 billion yuan to 1.0192 trillion yuan this year, an increase of about 35%, and about 260 billion leveraged funds poured into the stock market during the year. In the phased market, the volume and price of A-shares have risen. The total turnover of A-shares for the whole year was 126.95 trillion, an increase of 40% from 8.965 billion yuan in 2018.

As the reform of the capital market continues and the regulation of the capital market is moderately relaxed, market participants predict that A-shares are expected to perform steadily in 2020. CITIC, Guotai Junan, CITIC Construction Investment, China Merchants, Haitong and other securities firms are all optimistic about the brokerage sector in their 2020 strategy; in addition, under the background of vigorously promoting the creation of "aircraft carrier-level securities firms" by supervision, large securities firms will be able to enjoy development dividends in the future development, and will have more excellent performance in 2020.

The business highlights of each securities firm are different.

Although the net profits of various brokerages increased significantly in 2019, and the income of the brokerage business played an important role, the bright spots of the performance growth of various brokerages were different. Among the large securities firms, the investment banking business income of CITIC, CSC FINANCIAL CO.,LTD and China Merchants all increased significantly. under the general trend of the strong in the industry and the strong supervision, the investment banking business gathered to the large securities firms, and the investment banking business of the securities firms with strong comprehensive strength performed well.

Societe Generale Securities, whose net profit increased by more than 12 times for the whole year, achieved good returns in securities investment business, achieved remarkable results in the transformation and development of the branch, and achieved restorative growth in brokerage business income.

On the one hand, small and medium-sized securities firms benefit from the warming market, proprietary business to contribute to performance; on the other hand, according to their own resource endowment to develop characteristic business.

Hualin Securities issued a pre-increase announcement, the 2019 return net profit of about 432 million yuan to 452 million yuan, a year-on-year increase of about 30%, mainly due to the thickening performance of capital management and fixed income business. Hualin Securities said that the company's asset management business is developing rapidly and its product line is constantly complete, which has become one of the growth points of the business. The fixed income business takes bonds, repurchase, lending and treasury bond futures as the core, carries out integrated business such as investment, research, market maker trading, sales support and financial consultants, and has extensive and profound channels and customer base in the bond market. business development maintains a good momentum.

Guoyuan Securities achieved revenue of 3.303 billion yuan in 2019, an increase of 30% over the same period last year, and its net profit was 917 million yuan, an increase of 36.8% over the same period last year. Mainly self-investment and brokerage business and subsidiaries increased significantly, credit business income decreased compared with the same period last year. A few days ago, Guoyuan Securities issued a credit impairment announcement, the provision for credit impairment in the second half of 2019 totaled 105 million yuan, reducing the company's total profit of 105 million yuan and net profit of 78.3929 million yuan. Among them, due to equity pledge repurchase business provision of 84.289 million yuan, financing funds of 13.339 million yuan.

In the process of combing, the reporter found that some small and medium-sized securities firms are making efforts to catch up, and have achieved remarkable results. For example, open source securities achieved operating income of 1.995 billion yuan and net profit of 441 million yuan in 2019, an increase of 62.57% and 996.63% respectively over the previous year. According to the statistics of China Securities Association as of the end of November, the company ranked 45th in operating income and 51st in net profit, up 9 and 32 places respectively from the end of 2018.

At the moment when the new third board reform is officially launched, the new third board is likely to be a major increment of the brokerage business in 2020. In 2019, 56 open source securities were recommended and listed, ranking first in the industry, 138 continuous supervision enterprises and 417 total supervisors. ranked second in the industry, market share further increased.