China Times (www.chinatimes.net.cn) reporter Chen Feng, trainee reporter Qiu Li, Beijing report
6The A-share market reversed the continuous decline in one fell swoop, sounding the rallying call for an upward attack. The Shanghai Stock Exchange Index once again stood at 3,200 points, and the turnover of the two cities once again exceeded the one trillion mark. Northbound funds have shown net inflows for seven consecutive days. On June 6, there was a crazy "sweeping of goods" of over 10 billion A shares .
The long-dormant Science and Technology Innovation Board has become the leader in the A-share market. It has bottomed out on April 27. As of June 7, the Science and Technology Innovation 50 Index has risen by more than 30%.
With the rise of A-shares, many investors have regained their fighting spirit, and brokerage firms have also begun to get excited. On June 6, Tan Jun, an analyst from the electronics team of Founder Securities Research Institute, posted in Moments: "I should be the first person on the Internet to shout 4,000 points. I believe in the power of belief." He also added the Shanghai Composite Index trend K line chart . As soon as the news came out, it immediately detonated the market.
A staff member from the Office of the Secretary to the Board of Directors of Founder Securities said in an interview with a reporter from " China Times " that a compliance investigation and accountability has been launched for the analyst who called out 4,000 points. At present, we have no way to give a specific answer and need to be responsible for this matter. people will respond after completing the investigation.
Brokerage analysts shouted 4,000 points
Public information shows that Tan Jun is a member of the electronics industry research team of Founder Securities Research Institute. According to employee information on the official website of the Securities Association of China, Tan Jun, female, has a bachelor’s degree and first registered in 2017. She joined Founder Securities in December 2021. She previously worked at Shanghai Huaxin and Industrial Securities . Her current registration status is normal and her practice position is general securities business.
Independent financial commentator Zhang Xuefeng told a reporter from China Times that whether the "order calling" behavior of securities analysts requires a comprehensive judgment. If the 4,000-point statement made by the analyst is supported by detailed arguments, it is objective and valid. Rigorous logical analysis complies with the professional standards of securities analysts, and the analyst does not engage in insider trading behavior such as buying or selling securities in advance, then the "order calling" behavior may be legal and legal. However, for brokerage analysts, risk awareness must be placed in a very important position. "How can you often walk by the river without getting your shoes wet?" Try to avoid any behavior that is hyped for the sake of attracting people's attention. For yourself, A career is a kind of protection. In the long run, those better analysts tend to make progress while maintaining stability, so that their career life will be longer.
Founder Securities’ stock price has been languishing, and has continued to fall in the past year. As of the close of trading on June 7, Founder Securities fell 0.31%. The latest total market value was 52.2 billion yuan, and the stock price was reported at 6.34 yuan, falling back to 10 years ago at the end of 2011. The price when it was first listed has retraced nearly 53% from the highest point of 11.94 yuan in September 2021, and the stock price has been nearly halved.
What is noteworthy is that institutions are "escape". Founder Securities In the first quarter of 2022, the number of institutions holding shares decreased by 187 compared to the end of 2021, and they reduced their holdings by more than 630,000 shares in the first quarter. As of March 31, the number of institutional shares held was only 343,800 shares.
In addition, the number of retail investors is also gradually decreasing. Choice financial terminal data shows that as of March 31, 2022, the total number of shareholders of the company was 200,000, a decrease of 6,770 households or 3.27% compared with the end of 2021; the average stock value of each household dropped from 311,400 at the end of last year to 27.68 Ten thousand yuan.
According to the latest quarterly report, as of March 31, 2022, a total of 2 funds held Founder Securities among the top ten holdings, holding a total of 315,700 shares; the value of the stock holdings was 2.1278 million yuan, a decrease of 18.18% from the end of the previous quarter. million, a month-on-month decrease of 7.87%, making it the 1,552nd largest holding of public funds. Among them, the fund with the largest number of shares is Hui’an Shanghai Securities ETF, holding 315,200 shares. Founder Securities’ share price fell 14% in the first quarter.
Founder Securities’ first-quarter net profit halved
In the first quarter of this year, the overall performance of the securities firm was dismal. The 41 A-share listed securities companies generated a total revenue of 96.268 billion yuan, down 30% year-on-year; net profit attributable to parent companies was 22.921 billion yuan, down 45% year-on-year, and the overall performance dropped significantly.
Founder Securities’ performance cannot hide its decline. Judging from the single-quarter data, both revenue and net profit declined.The performance report for the first quarter of 2022 shows that during the reporting period, Founder Securities achieved total operating income of 1.668 billion yuan in the first quarter, a year-on-year decrease of 18.6%; net profit attributable to the parent company was 477 million yuan, a significant year-on-year decrease of 46.31%; deducting non-net profit was 466 million yuan, A year-on-year decrease of 47.10%.
Founder Securities stated that the decline in net profit during the reporting period was mainly due to the impact of market conditions and the decrease in income from wealth management business, investment and trading business, etc. The company’s wealth management revenue accounts for as high as 80%.
From the perspective of cash flow , the net cash flow generated from operating activities was -1.153 billion yuan, compared with 1.2 billion yuan in the same period last year, a year-on-year drop of 196.1%; the month-on-month drop was 118.07%. It can be seen that Founder Securities’ cash flow situation was relatively tight in the first quarter.
The stock pledge business has always been the hardest hit area by "explosion", seriously affecting securities performance. Founder Securities has accrued nearly 2.4 billion in credit business impairment losses from 2017 to 2021.
A staff member from the Office of the Secretary to the Board of Directors of Founder Securities told the China Times reporter that the risks of the stock pledge business have been mentioned in the company’s annual report and that the risks of the stock pledge business have been released to a great extent. As of the end of December 2021, the net value of Founder Securities’ on-balance sheet stock pledged repurchase business was 593 million yuan.
Brokerages have different views on the market outlook for A-shares
It is worth noting that judging from recent research reports, brokerages have different views on the market outlook. CITIC Securities said that the A-share market has switched from the oversold rebound stage starting in late April to the mid-term slow-rising main market stage starting in June; China Merchants Securities said that A-shares will continue their previous upward trend in June. The trend shows an upward trend. Even if there is an adjustment, it is only a normal adjustment in an upward cycle.
However, there are also many institutions that hold a cautious view. Guotai Junan believes that it is not appropriate to chase higher than 3200 points. Currently, A-shares are still in the stage of bottom building and bottoming, and performance certainty is the core style at this stage.
West China Securities also said that it is currently not recommended to continue to chase higher, and selecting high-quality stocks has become the only way to obtain excess returns in the future.
Editor: Yan Hui Editor: Xia Shencha
