As of October 15, 30 listed securities companies had unveiled their earnings performance for September. Their total operation revenues and net profits registered 15.431 billion yuan and 5.524 billion yuan, respectively. Most of them saw growth in operation revenues and earnings in September on a monthly basis, and over 50 percent of them (16 companies) enjoyed over 100 percent increase in single-month net profits but most suffered year-on-year decline.
Performance in Shanghai and Shenzhen bourses mixed in September with Shanghai Composite Index rebounding 3.53 percent while Shenzhen Component Index down slightly by 0.76 percent. An analyst with a large Shanghai securities firm pointed out that the rebound in late September directly benefited brokerage and self-operated businesses of securities companies. In addition worse performance in August, the performance surged significantly in September when compared with that in August.
Founder Securities ranked the first in revenues performance
Most securities companies listed in A-share market saw positive growth in operation revenues last month. Specifically, 11 securities companies witnessed over 100 percent growth, and those with over 200 percent increase included Southwest Securities Co., Ltd. (600369.SH), Founder Securities Co., Ltd. (601901.SH), Western Securities Co., Ltd. (002673.SZ), Northeast Securities Co., Ltd. (000686.SZ), The Pacific Securities Co., Ltd. (601099.SH), Sealand Securities Co., Ltd. (000750.SZ), and Shanxi Securities Co., Ltd. (002500.SZ). Only two firms suffered decrease in revenues based on a monthly basis. For instance, operation revenues of First Capital Securities Co., Ltd. (002797.SZ) lost 25.14 percent in September.
Besides, operation revenues of many subsidiaries of securities companies engaged in asset management and investment bank businesses in the month also surged sharply. Operation revenues of Galaxy Jinhui Securities Asset Management Co., Ltd., Huatai United Securities and Haitong Asset Management Co., Ltd. rose by more than 200 percent, and that of Guotai Junan Asset Management also edged up by over 100 percent.
Net profits of many securities firms also increased by over 100 percent in September. Net profits of Industrial Securities Co., Ltd. (601377.SH) posted 65.04 million yuan in the month, an increase of 765.93 percent from the previous month; and those of Huaan Securities Co., Ltd. (600909.SH) climbed by 506.73 percent to 30.32 million yuan. In addition, net profits of Soochow Securities Co., Ltd. (601555.SH), Western Securities, Southwest Securities, Changjiang Securities Company Limited (000783.SZ), Zheshang Securities Co., Ltd. (601878.SH), and Huatai Securities Co., Ltd. (601688.SH) moved up by over 200 percent.
Among these securities firms, Citic Securities Company Limited (600030.SZ) ranked the first in terms of operation revenues with about 1.616 billion yuan in September, followed by Huatai Securities, Guotai Junan Securities, Founder Securities and Shenwan Hongyuan Securities, whose operation revenues came at over 1 billion yuan.
Founder Securities ranked first with a monthly net profit of 1.007 billion yuan. The company's operating income and net profit increased significantly in the month, mainly due to the receipt of a cash dividend of 900 million yuan from its wholly-owned subsidiary China Minzu Securities. Huatai Securities ranked second with a net profit of 649 million yuan, and CITIC Securities ranked third.
Most companies declines on a yearly basis
Although securities companies’ earnings rebounded in September, their revenue and net profit for the first three quarters still declined dramatically.
Listed securities companies that revealed earnings result have seen a decline of more than 50 percent in net profit for the first three quarters of this year. Guohai Securities suffered most, as it expects its net profit at 127 million yuan to 133 million yuan in the first three quarters, down 76- 77 percent year-on-year. Shanxi Securities estimates that the net profit for the first three quarters will be 104 million yuan to 128 million yuan, down 66.34-72.46 percent year-on-year.
Guohai Securities said that in the first three quarters, the macroeconomic environment was complicated. The pace of equity financing in the primary market slowed down, and the trend of stocks in the secondary market continued to fall. The turnover of the Shanghai and Shenzhen stock markets decreased significantly year-on-year. Due to the continuous decline of the stock market, shrinking turnover, and the reduction of the scale of equity financing, and the adverse effects of certain business restrictions during the reporting period, the company’s income from investment banking, proprietary trading and brokerage businesses declined year-on-year.
In addition, Guangdong Golden Dragon Development Inc. and Guosheng Financial Holding are expected to report losses in the first three quarters. Golden Dragon Development expects the company's net profit for the first three quarters to report a loss of 68.463 -880.241 million yuan, compared with a profit of 196 million yuan in the same period last year. Guosheng Financial Holding also expects a net loss of 254 million yuan in the first three quarters, with a net profit of 3.37 million yuan in the same period last year.
Guosheng Financial Holding said that the loss was mainly a result of continuing floating loss in its proprietary investment financial assets as the stock market continues to trend down. And the light trading in the market also made the securities brokerage business fee income lower than the previous forecast. Golden Dragon Development said the loss was caused by failure in equity pledge and bond business.
Translated by Vanessa Chen & Coral Zhong
Performance in Shanghai and Shenzhen bourses mixed in September with Shanghai Composite Index rebounding 3.53 percent while Shenzhen Component Index down slightly by 0.76 percent. An analyst with a large Shanghai securities firm pointed out that the rebound in late September directly benefited brokerage and self-operated businesses of securities companies. In addition worse performance in August, the performance surged significantly in September when compared with that in August.
Founder Securities ranked the first in revenues performance
Most securities companies listed in A-share market saw positive growth in operation revenues last month. Specifically, 11 securities companies witnessed over 100 percent growth, and those with over 200 percent increase included Southwest Securities Co., Ltd. (600369.SH), Founder Securities Co., Ltd. (601901.SH), Western Securities Co., Ltd. (002673.SZ), Northeast Securities Co., Ltd. (000686.SZ), The Pacific Securities Co., Ltd. (601099.SH), Sealand Securities Co., Ltd. (000750.SZ), and Shanxi Securities Co., Ltd. (002500.SZ). Only two firms suffered decrease in revenues based on a monthly basis. For instance, operation revenues of First Capital Securities Co., Ltd. (002797.SZ) lost 25.14 percent in September.
Besides, operation revenues of many subsidiaries of securities companies engaged in asset management and investment bank businesses in the month also surged sharply. Operation revenues of Galaxy Jinhui Securities Asset Management Co., Ltd., Huatai United Securities and Haitong Asset Management Co., Ltd. rose by more than 200 percent, and that of Guotai Junan Asset Management also edged up by over 100 percent.
Net profits of many securities firms also increased by over 100 percent in September. Net profits of Industrial Securities Co., Ltd. (601377.SH) posted 65.04 million yuan in the month, an increase of 765.93 percent from the previous month; and those of Huaan Securities Co., Ltd. (600909.SH) climbed by 506.73 percent to 30.32 million yuan. In addition, net profits of Soochow Securities Co., Ltd. (601555.SH), Western Securities, Southwest Securities, Changjiang Securities Company Limited (000783.SZ), Zheshang Securities Co., Ltd. (601878.SH), and Huatai Securities Co., Ltd. (601688.SH) moved up by over 200 percent.
Among these securities firms, Citic Securities Company Limited (600030.SZ) ranked the first in terms of operation revenues with about 1.616 billion yuan in September, followed by Huatai Securities, Guotai Junan Securities, Founder Securities and Shenwan Hongyuan Securities, whose operation revenues came at over 1 billion yuan.
Founder Securities ranked first with a monthly net profit of 1.007 billion yuan. The company's operating income and net profit increased significantly in the month, mainly due to the receipt of a cash dividend of 900 million yuan from its wholly-owned subsidiary China Minzu Securities. Huatai Securities ranked second with a net profit of 649 million yuan, and CITIC Securities ranked third.
Most companies declines on a yearly basis
Although securities companies’ earnings rebounded in September, their revenue and net profit for the first three quarters still declined dramatically.
Listed securities companies that revealed earnings result have seen a decline of more than 50 percent in net profit for the first three quarters of this year. Guohai Securities suffered most, as it expects its net profit at 127 million yuan to 133 million yuan in the first three quarters, down 76- 77 percent year-on-year. Shanxi Securities estimates that the net profit for the first three quarters will be 104 million yuan to 128 million yuan, down 66.34-72.46 percent year-on-year.
Guohai Securities said that in the first three quarters, the macroeconomic environment was complicated. The pace of equity financing in the primary market slowed down, and the trend of stocks in the secondary market continued to fall. The turnover of the Shanghai and Shenzhen stock markets decreased significantly year-on-year. Due to the continuous decline of the stock market, shrinking turnover, and the reduction of the scale of equity financing, and the adverse effects of certain business restrictions during the reporting period, the company’s income from investment banking, proprietary trading and brokerage businesses declined year-on-year.
In addition, Guangdong Golden Dragon Development Inc. and Guosheng Financial Holding are expected to report losses in the first three quarters. Golden Dragon Development expects the company's net profit for the first three quarters to report a loss of 68.463 -880.241 million yuan, compared with a profit of 196 million yuan in the same period last year. Guosheng Financial Holding also expects a net loss of 254 million yuan in the first three quarters, with a net profit of 3.37 million yuan in the same period last year.
Guosheng Financial Holding said that the loss was mainly a result of continuing floating loss in its proprietary investment financial assets as the stock market continues to trend down. And the light trading in the market also made the securities brokerage business fee income lower than the previous forecast. Golden Dragon Development said the loss was caused by failure in equity pledge and bond business.
Translated by Vanessa Chen & Coral Zhong
Latest comments