GuShiio.com ① Currently, the securities companies with net profit of 10 billion yuan are CITIC (21.7 billion yuan), Guotai Junan (13 billion yuan), China Merchants (10.3 billion yuan), and Galaxy (10.1 billion yuan);
② Among the current 34 securities firms, 29 have a positive year-on-year growth rate, that is, 85.29% of securities firms have a positive growth in their parent net profit last year.
Cailian News, February 22 (Reporter Gao Yanyun)Driven by the recovery of the capital market and policy dividends, the securities industry has ushered in an inflection point for performance recovery.
As of February 21, 34 securities firms have disclosed their 2024 results, and the net profits of the four top securities firms that have disclosed their results are: CITIC Securities (21.704 billion yuan), Guotai Junan (13.018 billion yuan), China Merchants Securities (10.367 billion yuan), Galaxy Securities (10.133 billion yuan), and the top brokers are Orient Securities (3.351 billion yuan), SDIC Securities (2.564 billion yuan), Soochow Securities (2.366 billion yuan), Guoyuan Securities (2.285 billion yuan), Changjiang Securities (1.839 billion yuan), Hua ‘an Securities (1.484 billion yuan).
Judging from the current performance growth rate of 34 securities firms, the overall performance is remarkable. 29 firms have positive year-on-year growth rates, and only 5 firms have negative growth rates, which means that 85.29% of securities firms have positive growth in net profit to their parents last year.
Seller research generally attributed the reversal in brokerage performance last year to the launch of the September 24 market last year. The income from proprietary investment increased significantly, and the wealth business also became a driving force. In addition, the performance of the first quarter of this year was also viewed with optimism. Trading was active + the market was picking up. Brokerage and equity self-employment were the biggest improvements in brokerage performance.
Nearly 90% of net profit is growing positively
At present, there are 4 companies whose net profit will exceed 10 billion yuan in 2024, namely CITIC Securities (21.704 billion yuan), Guotai Junan (13.018 billion yuan), China Merchants Securities (10.367 billion yuan), and Galaxy Securities (10.133 billion yuan).
There are currently 10 brokerages with a net profit of one billion, namely Orient Securities (3.351 billion yuan), SDIC Securities (2.564 billion yuan), Soochow Securities (2.366 billion yuan), Guoyuan Securities (2.285 billion yuan), Changjiang Securities (1.839 billion yuan), Hua ‘an Securities (1.484 billion yuan), Dongxing Securities (1.45 billion yuan to 1.7 billion yuan), CICC Fortune (1.194 billion yuan), Nanjing Securities (999 million yuan), Capital Securities (982 million yuan).
Among the top brokers, Guotai Junan and Galaxy Securities performed particularly well. Last year, net profit attributable to parent companies grew at a higher year-on-year rate, reaching 38.87% and 28.62% respectively.
Among the billion-level brokerages with net profit, the brokerages with year-on-year growth rates of more than 30% are SDIC Securities (32.85%), Dongxing Securities (76.89% to 107.38%), Nanjing Securities (47.61%), and Capital Securities (40.14%).
After the holiday, the performance report was intensively reported
It is noteworthy that the four securities firms that disclosed their performance after the Spring Festival collectively delivered high scores.
On February 21, Capital Securities released its 2024 performance report. In 2024, the company achieved operating income of 2.415 billion yuan, a year-on-year increase of 25.37%; and achieved net profit attributable to shareholders of the parent company of 982 million yuan, a year-on-year increase of 40.14%. After sorting out the historical performance of Capital Securities, last year’s operating income and net profit attributable to the parent reached record highs.
Capital Securities said that in 2024, the company will focus on the annual business plan, base itself on the new development stage, and on the basis of strengthening compliance management and focusing on risk prevention, leverage its business advantages, strengthen market expansion, adjust the organizational structure, strengthen internal coordination, and promote the company’s various undertakings achieve higher-quality development. The company’s asset management business is accelerating its move towards multi-asset and multi-strategy directions, promoting the continuous optimization and balanced development of credit bond strategies, interest rate bond strategies,”large fixed income +” strategies, equity strategy products and asset management and investment products. The business scale and industry ranking is stable and improving; the fixed income investment trading business effectively grasps bond market trading opportunities, continuously improves the depth and breadth of “fixed income +” business, and achieves good investment returns.
On February 19, Shanghai Securities also mentioned its 2024 results in the 2025 short-term issuance arrangement announcement. The company achieved revenue of 5.26 billion yuan, a year-on-year increase of 53.89%, and achieved a net profit attributable to the parent company of 955 million yuan, a year-on-year increase of 170.54%.
On February 14, Orient Securities announced that it will achieve operating income of 19.190 billion yuan in 2024, a year-on-year increase of 12.29%; net profit attributable to shareholders of listed companies will be 3.351 billion yuan, a year-on-year increase of 21.68%. The main reason was the increase in income from self-operated securities business and the decrease in credit impairment accrual.
On February 10, Soochow Securities announced that it will achieve total operating income of 11.536 billion yuan in 2024, a year-on-year increase of 2.26%, and net profit attributable to shareholders of listed companies will be 2.366 billion yuan, a year-on-year increase of 18.19%. The company’s operating performance has increased steadily, and various businesses have steadily expanded.
Spring market catalyzes performance elasticity
Regarding the reasons for the growth in brokerage performance, seller research generally believes that the launch of the 9.24 market last year was a key factor.
Soochow Securities Research reported that in 2024, it is expected that the operating income of listed securities firms will increase by 11% year-on-year, and the net profit will increase by 15% year-on-year; net profit in the fourth quarter will increase by 66% year-on-year. The net profit of securities firms in 2024 will be reversed from a 21% decline in the first half of the year to positive growth, mainly due to the significant increase in stock-based transaction volume and financing balance since September 24, 2024, and both equity and bond markets have gone bullish in the second half of the year. This has led to a significant increase in net income from investment in the self-operated sector.
Caitong Securities Research News believes that market activity will increase significantly in the fourth quarter of 2024, and brokerage, credit, investment and other businesses will all benefit. In terms of policies, under the requirement of “stabilizing the stock market”, the A-share market is still expected to see continued or even strengthened policies. Under the extraordinary efforts of policies, the brokerage sector is expected to usher in greater premium space.
Regarding the performance of securities firms in the first quarter of this year, Yongxing Securities Research reported that trading was active and the market was picking up, and the fundamentals of securities firms in 25Q1 may have improved significantly. After the holiday, the market conditions warmed up, and market trading activity rebounded significantly. The average daily turnover from January to February this year increased by 64.1% year-on-year. Monetary easing and the introduction of medium and long-term funds are expected to maintain high activity, bringing about an increase in the prosperity of the brokerage sector. Brokerage and equity self-employed companies are expected to be the biggest improvement in the performance of securities firms in 25Q1.
