After the end of the financial reporting season, listed companies, including securities companies, held annual reports and quarterly performance presentations in succession to strengthen interaction with investors and clarify the company's future development path. From the responses of several securities companies at the quarterly report performance briefing, in 2024, they will focus on their main responsibilities, strengthen their functional positioning, and continue to promote scientific and technological transformation. The medium-term dividend expected by investors is also imminent.
Although under the influence of multiple factors, the performance of most listed securities firms declined in the first quarter of 2024, recent positive signals such as the improvement of A-share market liquidity and marginal warming of market trading and investment activity have emerged frequently. The insiders have a positive attitude towards the repair of the fundamentals of securities firms, and suggest grasping three types of industrial layout opportunities with M&A themes and geographical advantages.
Reveal the future "play"
On the afternoon of May 9, First Venture held the 2023 annual report and the first quarter report of 2024 online performance presentation meeting to communicate with investors on the operating conditions of the whole year last year and the first quarter of this year. When talking about the plan for the next year, the company said that it would continue to deepen the coordination mechanism and promote the deepening transformation of major businesses, build core competitiveness, strive to promote a larger customer base, increase asset scale, strengthen investment research capabilities, improve comprehensive financial service capabilities, and Private equity fund management and other specific business development plans were shared.
Before the first venture, Hualin Securities and Soochow Securities had held the 2023 annual and 2024 first quarter online performance briefing, and the performance briefing of Caitong Securities, Industrial Securities, Guojin Securities and other securities companies was on the way. While sharing how to improve their competitiveness in the future, securities companies also shared their plans and considerations on hot topics that investors pay attention to, such as wealth management transformation and medium-term dividend.
Soochow Securities said that the company will focus on its main responsibility, strengthen its functional positioning, firmly follow the path of specialization and refinement, and constantly improve the efficiency of financial services. Specific measures include expanding the base area nationwide, compacting the "gatekeeper" responsibility of the capital market, adhering to the business direction of "pulling the long board, strengthening the bottom board, and supplementing the weak board" Realize the balanced and healthy development of all business lines, pay attention to endogenous kinetic energy, improve value creation ability, etc. At the same time, the company said that it had submitted to the general meeting of shareholders to authorize the board of directors to formulate the company's 2024 medium-term dividend plan under the conditions of profit distribution, and the total amount of cash dividends distributed should not exceed 50% of the net profit attributable to shareholders of the parent company in the current consolidated statements.
In the first quarter of 2024, the revenue of Hualin Securities achieved double-digit growth, and its net income from brokerage fees also achieved year-on-year growth. When asked about new plans in the field of wealth management, the company responded that it would continue to promote technological transformation, improve customer portraits and upgrade wealth management apps, improve users' intelligent experience, continue to strengthen online and offline integration, accelerate the activation of dormant customers in stock, and increase customer scale; In terms of product services, the company will continue to use its own fixed income products of asset management and public bond products as the reservoir, while strengthening asset side construction, enriching the allocation of large categories of assets, and helping investors to maintain and increase the value of assets.
Plate valuation material repair
From the overall performance of listed securities companies in the first quarter of 2024, more than 80% of the net profits of 43 securities companies declined year-on-year, and some of the net profits of securities companies turned from profit to loss. In the opinion of the insiders, the decline of securities companies' performance is not only caused by the sharp fluctuations of the market and the slowdown of the IPO stage, but also affected by the high base of the previous year's performance.
"Although the fundamentals of the first quarter have been under pressure, the liquidity of the A-share market has improved recently, the margin of market trading activity has warmed up, and after the second quarter of 2023, the performance base of the securities business has declined, so we can focus on the fundamentals and valuation repair of subsequent securities firms." In the view of Wang Weiyi, chief analyst of Ping An Securities' non bank financial industry, Under the guidance of accelerating the construction of first-class investment banks, higher requirements for compliance risk control and strengthened supervision, the supply side of the securities industry will continue to be optimized, and the current securities sector also has a high cost performance ratio and safety margin.
Since late April, the A-share market has regained its upward trend. On May 9, the three major stock indexes of the market rose collectively. The northward capital continued to enter the market, with a net purchase of more than 8 billion yuan throughout the day. In terms of policy, after the promulgation of the new "National Ninth Article", many departments continued to introduce policies on developing the economy and optimizing the capital market, showing a clear trend of protecting the capital market.
"With the gradual refinement and clarification of the regulatory authorities' policies on the capital market, after the continuous improvement of the capital market ecology, both the financing end and the investment end are expected to achieve the improvement of quantity and quality, opening up the performance space for the core intermediaries in the capital market such as securities dealers." Looking forward to the future performance of the securities sector, Liu Jiawei, chief analyst of Dongxing Securities for Africa, said.
Considering that the current valuation of the securities sector and institutional positions are at historic lows, Gao Chao, the chief analyst of the non bank financial industry of open-source securities, suggested focusing on three major investment opportunities in the industry from the perspective of investment: "First, the subject with M&A themes and regional advantages; second, Internet securities firms that benefit from the increase in market trading volume; The third is the comprehensive securities companies that benefit from the increase of industry concentration. "
