As of the evening of October 28, a total of 38 listed brokers in A-share disclosed their third quarter reports of 2022, and only 3 listed brokers remained undisclosed. Among these 38 listed brokers, 13 listed brokers had operating income exceeding 10 billion yuan in the first three quarters, and 19 listed brokers had net profit exceeding 1 billion yuan in the first three quarters.
specifically goes to various securities companies. CITIC Securities 's operating income in the first three quarters was nearly 50 billion yuan, or 49.821 billion yuan, ranking first in the industry. At the same time, CITIC Securities is also the only brokerage with a net profit of over 10 billion yuan in the first three quarters, with a net profit of 16.568 billion yuan.
13 brokerage firms' revenue exceeded 10 billion yuan in the first three quarters
In terms of operating income, 13 brokerage firms' operating income exceeded 10 billion yuan in the first three quarters of 2022. Among them, CITIC Securities ranked first in the industry with an absolute advantage of 49.821 billion yuan; China Galaxy jumped to second place in the industry, with operating income of 27.278 billion yuan in the first three quarters; Guotai Junan followed closely, with 26.715 billion yuan, ranking third in the industry; Huatai Securities and CITIC Construction Investment ranked fourth and fifth in the industry with revenue of 23.618 billion yuan and 22.703 billion yuan respectively.
brokerage firms with operating income exceeding 10 billion yuan in the first three quarters of 2022
Source: Wind
There are also CICC, Haitong Securities , Shenwan Hongyuan , GF Securities , China Merchants Securities , Guosin Securities , Guosin Securities , Guosin Securities , Oriental Securities , Zhejiang Securities .
From the perspective of operating income growth, most listed securities companies have declined compared with the same period last year. Only 7 listed securities companies achieved positive growth in the first three quarters of 2022. Dongwu Securities 's operating income increased the largest, at 36.4%. The other 6 listed securities companies are CITIC Construction Investment, Huaan Securities , Shanxi Securities , China Galaxy, Guoyuan Securities , and Guolian Securities .
In terms of net profit, 19 listed brokerages had net profits of over 1 billion yuan in the first three quarters of 2022. Among them, CITIC Securities was the only brokerages with net profits of over 10 billion yuan, with a net profit of 16.568 billion yuan. Guotai Junan was second, with net profit of 8.428 billion yuan in the first three quarters; Huatai Securities ranked third in the industry with 7.821 billion yuan. China Galaxy, CITIC Construction Investment, China Merchants Securities, Haitong Securities and CICC all exceeded 6 billion yuan in the first three quarters.
2022 net profit TOP10 brokerage
Source: Wind
Among these 38 listed brokers, only Everbright Securities and Founder Securities net profit in the first three quarters achieved year-on-year growth in , and other brokers' net profit in the first three quarters all decreased compared with the same period last year. Pacific Securities is the only brokerage firm that has lost money among these 38 listed brokers, achieving a net profit of -64 million yuan in the first three quarters. In its third quarter report, Pacific Securities pointed out that the main reason for the performance changes was the decrease in securities investment business revenue during the reporting period, and the provisions for impairment of to increase .
The business of many securities companies has shown highlights
Specifically for the businesses of each securities company, although many listed securities companies said in the third quarter reports that the decline in performance was a decrease in investment business revenue, many listed securities companies still showed strong momentum in their many businesses, especially the leading securities companies.
Among the investment business areas mentioned by many securities companies, CITIC Securities far outperformed the same industry, with its investment income in the first three quarters of 2022 reaching 23.152 billion yuan, a significant increase from 15.926 billion yuan in the same period in 2021. In addition, CITIC Securities' net income from investment banking business handling fee in the first three quarters was also very impressive, at 6.271 billion yuan, an increase of 11.11% year-on-year.
In addition to CITIC Securities, the investment banking business revenue of many listed securities companies achieved year-on-year growth in the first three quarters. CICC's net income from investment banking business fees in the first three quarters was 4.657 billion yuan, a year-on-year increase of 12.68%; Guotai Junan's net income from investment banking business fees in the first three quarters was 3.073 billion yuan, a year-on-year increase of 28.63%; Huatai Securities' net income from investment banking business fees in the first three quarters was 2.905 billion yuan, a year-on-year increase of 9.42%.
Take CICC as an example. Wind data shows that in the first three quarters of this year, CICC ranked second in A-share IPO financing, A-share refinancing ranked first, and Hong Kong stock IPO financing scale and number of sponsored funds.Among them, CICC's A-share IPO continued to consolidate its existing advantages and participated in three projects worth over 10 billion yuan, including China Mobile, China National Offshore Oil Corporation , and United Film Medical projects; CICC's A-share refinancing project reached a new high, completing projects such as CATL , Ningbo Zhoushan Port and other projects.
Customer-demand institutional business is a watershed in securities companies' performance
In the view of industry insiders, the decline in investment business is still the main reason for affecting securities companies' performance in the third quarter.Customer-demand institutional business is a watershed in securities companies' performance. Currently, the valuation of the securities sector is at the historical bottom.
analysts pointed out that investment businesses affected by the market decline and the higher year-on-year base are the main reasons for the decline in the performance of listed securities companies. The business of customer-demand institutions is still the watershed of securities companies' performance in the third quarter. The performance of securities companies with high customer-demand businesses such as over-the-counter derivatives has stronger stability. Investor institutionalization will further drive the growth of securities institutions' business, and productization capabilities will become the core competitiveness in the future.
Kaiyuan Securities Chief analyst of the non-bank finance industry Gao Chao said that the valuation of the securities sector is at the historical bottom, and trading volume shows signs of bottoming out and rebounding. The year-on-year improvement in performance brought by the low base is expected to occur in the fourth quarter, and the warm wind on the policy side continues. We are optimistic about the excess returns of securities companies in the next one to two quarters, and the short-term trading volume and policy favorable sensitive targets have strong elasticity.
Shenwan Hongyuan non-bank analyst Xu Yishan said that the valuation of the securities sector has bottomed out. As of September 30, 2022, the PB valuation of the securities sector was 1.13 times, at the 0.3% quantile since 2012; the static PE valuation is 15.4 times, at the 9.9% quantile since 2012. We must pay attention to the allocation opportunities of securities companies. Leading securities companies have relatively stable profitability and stable asset quality.
Edited by: Wang Yin
