(Original title: 7 listed securities companies including China Securities Investment Co., Ltd. have reached new highs in revenue and net profit in the first quarter! Tianfeng Securities achieved a turnaround and threw out a 4 billion fixed increase plan)
As of the evening of April 27, 24 A-share listed securities firms have disclosed their first quarter reports or express reports for 2023. From the perspective of comprehensive revenue and net profit, 7 securities firms, including China Securities, China Galaxy, China National Finance Securities, Tianfeng Securities, Zheshang Securities, Cinda Securities and Capital Securities, will hit new highs in revenue and net profit in the first quarter of 2023 .
Taking Tianfeng Securities as an example, its operating income in the first quarter achieved 1.4 billion yuan, a year-on-year increase of 283.04%, and realized a net profit of 547 million yuan attributable to the parent company, turning losses into profits. First report card. In addition, while disclosing the first quarterly report, Tianfeng Securities also issued a private placement announcement to issue no more than 4 billion yuan to the controlling shareholder. After the completion of the issuance, Hongtai Group and persons acting in concert together hold 34.03% of the shares of the listed company.
Listed brokers get off to a good start in the first quarter
Benefiting from the recovery of the equity market, the market’s profit-making effect has increased, and the base of investment income over the same period has been extremely low, and the performance of securities companies in the first quarter has been greatly revised. According to Wind statistics, as of the evening of April 27, 24 listed securities firms have disclosed their first quarter reports or express reports for 2023, and the total revenue and net profit increased by 35% and 93% year-on-year respectively. Of course, the high performance is inseparable from the recovery of self-operated business.
For example, the net profit of Dongxing Securities in the first quarter of this year increased by 628.25% year-on-year. Dongxing Securities stated that it was mainly due to the increase in investment income from trading financial assets during the company’s reporting period; similarly, the net profit of Dongxing Securities in the first quarter of this year increased by 525.67% year-on-year. Earnings and gains from changes in fair value increased significantly year-on-year.
Specifically, in terms of revenue scale, among the 24 listed securities firms, 12 securities firms have reached new highs in revenue, including China Galaxy, China Securities, Zheshang Securities, Zhongtai Securities, Soochow Securities, etc.; In terms of scale, there are 10 securities companies with record high net profits, including CITIC Securities, China Securities, China Galaxy, Sinolink Securities, Tianfeng Securities, etc. On the whole, there are 7 companies with new highs in revenue and net profit in the first quarter of this year, namely China Securities, China Galaxy, Sinolink Securities, Tianfeng Securities, Zheshang Securities, Cinda Securities and Capital Securities.
Every reporter further discovered that the first quarterly report of Tianfeng Securities is its first report card after the completion of “nationalization”. According to Tianfeng Securities’ first quarterly report for 2023, the company’s operating income in the first quarter reached 1.4 billion yuan, a year-on-year increase of 283.04%, and realized a net profit of 547 million yuan attributable to the parent company, turning losses into profits. It is reported that this is also the first time that Tianfeng Securities has released a quarterly report since Hongtai Group took control of it. The revenue and net profit attributable to the mother have created the best results in its single-quarter history.
Some market participants believe that after the state-owned shareholders took control, the risks left over from the history of Tianfeng Securities have been fully cleared, and it is not surprising that the performance is improving. He said that the realization of the performance is only the appearance of the data, and the deep logic behind it should be seen. The state-owned controlling shareholder has brought Tianfeng Securities a stronger ability to resist risks.
Tianfeng Securities throws out a 4 billion fixed increase plan
Since the beginning of this year, as the economic situation has continued to improve, many securities companies have also thrown out refinancing plans to replenish capital in order to gain an advantage in market competition.
On the evening of April 27, while disclosing the first quarterly report, Tianfeng Securities also threw out a fixed increase plan of 4 billion yuan. The pre-plan shows that Tianfeng Securities intends to issue no more than 4 billion yuan in private placements to the controlling shareholder Hongtai Group, investing in three major areas. Among them, no more than 1.5 billion yuan will be invested in wealth management business, no more than 500 million yuan will be invested in investment transaction business, and no more than 2 billion yuan will be used to repay debts and supplement working capital.
Tianfeng Securities believes that, on the one hand, the company intends to moderately supplement the capital required for business development through this issuance and consolidate its existing advantageous businesses. On the other hand, the company is actively responding to regulatory calls, seeking a new path for high-quality development, improving the efficiency of capital use, and improving the ability to serve the real economy. It plans to use part of the funds issued this time to repay debts to supplement the company’s working capital to a certain extent. Pay close attention to market regulatory policy changes and industry development opportunities, build a diversified business structure, and cultivate new profit growth points.
The reporter noticed that before the completion of this issuance, Hongtai Group directly held 13.84% of the shares of Tianfeng Securities, and Wuhan Trading Group Co., Ltd., its person acting in concert, held a total of 22.62% of the shares of Tianfeng Securities. Calculated based on the upper limit of the number of issuances this time, after the completion of the issuance, Hongtai Group directly holds 26.54% of the shares of Tianfeng Securities, and its concerted parties hold a total of 34.03% of the shares of Tianfeng Securities, further consolidating the status of Tianfeng Securities as the controlling shareholder.
Some market participants believe that this fixed increase in Hongtai Group and Tianfeng Securities may be a win-win situation. Hongtai Group has further consolidated its position as a controlling shareholder, and the cash flow brought by the fixed increase will help Tianfeng Securities to fully expand its business At the same time, improve the ability to resist risks; in addition, “the synergistic effect of the two will be further deepened.”
The relevant person in charge of Tianfeng Securities said that in the next step, under the leadership of Hongtai Group, the company will continue to strengthen the service capabilities and wealth management capabilities of large investment banks, and continue to improve the level of marketization, specialization, and internationalization.
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