With the rapid development of the capital market in China, the securities industry grows continuously. By the end of December, 2016, there have been 127 securities companies in China.
In 2016, affected by recessionary investment climate of the Chinese market, traditional brokerage income of securities traders decreased sharply. However, securities companies constantly set up offline business outlets, presenting a rapid increase compared to 2015. Founder Securities has over 295 sales departments, exceeding Haitong Securities, which had the most sales department last year. Founder Securities became the one with the largest number of sales department.
With the development of the Chinese securities market, securities companies are trying to expand financial channels, enhance capital strength, improve business operation and efficiency to compete for market resources through share listings. In this way, securities companies gain room for survival. Additionally, it is conducive to the balanced development of the financial market in China.
In 2016, 6 listed securities traders went public in China. Huaan Securities and First Capital Securities are A-share listed companies; Oriental Securities, Everbright Securities, China Merchants Securities and CITI China Securities were listed on the Hong Kong stock market. The year 2016 witnessed the largest number of IPOs of Chinese securities companies on H-share market.
Since 2010, China Securities Regulatory Commission has issued a series of policies to loosen the regulations on the securities industry and deepen the reform on the capital market. On May 8th, 2014, the State Council published Opinions of the State Council on Further Promoting the Health Development of the Capital Market (No. 50 [2014] of the State Council). It regulated to develop an integrated stock market, develop and standardize the bond market, foster the private market, promote the establishment of the futures market, improve the competitiveness of the securities and futures industry, expand the opening of capital market, enhance the reform on registering system, prevent and reduce financial risks and create a good environment for the development of capital markets.
According to CRI, by the end of 2016, there have been over 20 million enterprises in China but A-share listed companies are less than 5,000. It can be concluded that despite the fast growth of the Chinese securities industry in the past 20 years, it still occupies a small proportion of the economy compared to that in developed countries. Therefore, it has huge potential for growth.
In this report, CRI analyzes 31 securities companies listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1) financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders' equity.
(1) Financial Indexes
- Earnings per Share
- Book Value per Share (BPS)
- Sales per Share (SPS)
- Net Cash Flow per Share from Operations
- Net Cash Flow per Share (CNY)
- Return on Net Worth
- Net Profit Margin on Total Assets
- Return on Invested Capital (ROIC) (%)
- Gross Profit Margin on Sales (%)
- Net Profit Margin on Sales (%)
- EBIT Margin (%)
- EBITDA Margin (%)
- Debt to Asset Ratio (%)
- Total Asset Turnover (times)
- Cash/Operating Income Received from Sales of Goods or Services
- YOY Growth Rate of Operating Revenue (%)
- YOY Growth Rate of Operating Profit (%)
- YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)
(2) Summary of Income Statement
- Gross Revenue (CNY, million)
- Total Operating Costs (CNY, million)
- Revenue (CNY, million)
- Operating Profit (CNY, million)
- Total Profit (CNY, million)
- Net Profit (CNY, million)
- Net Profit Attributable to Shareholders of Parent Company (CNY, million)
- Non-recurring Items (CNY, million)
- Net Profit Deducting Non-recurring Items (CNY, million)
- R&D Costs (CNY, million)
- Earnings Before Interest and Tax (EBIT) (CNY, million)
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)
(3) Summary of Balance Sheet
- Liquid Asset (CNY, million)
- Fixed Asset (CNY, million)
- Long-term Equity Investment
- Total Assets (CNY, million)
- Liquid Liability (CNY, million)
- Non-current Liability (CNY, million)
- Total Liability (CNY, million)
- Capital Reserve (CNY, million)
- Surplus Reserve (CNY, million)
- Undistributed Profit (CNY, million)
- Shareholders' Equity (CNY, million)
- Equity Attributable to Shareholders of Parent Company (CNY, million)
(4) Summary of Cash Flow Statement
- Cash Received from Sales of Goods and Services (CNY, million)
- Cash Flow from Operations (CNY, million)
- Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
- Cash Paid for Investments (CNY, million)
- Cash Flow from Investments (CNY, million)
- Cash Received from Investors (CNY, million)
- Cash Received from Borrowings (CNY, million)
- Cash Flow from Financing (CNY, million)
- Net Increase of Cash and Cash Equivalents (CNY, million)
- Cash and Cash Equivalents, End of Period (CNY, million)
- Depreciation and Amortization (CNY, million)
Companies in the report:
1 CITIC Securities Co., Ltd. (600030.SH)
2 SDIC Essence (Holdings) Co., Ltd. (600061.SH)
3 Sinolink Securities Co., Ltd. (600109.SH)
4 Hebei Baoshuo Co., Ltd. (600155.SH)
5 Southwest Securities Co., Ltd. (600369.SH)
6 Haitong Securities Co., Ltd. (600837.SH)
7 Huaan Securities Co., Ltd. (600909.SH)
8 Orient Securities Co., Ltd. (600958.SH)
9 China Merchants Securities Co., Ltd. (600999.SH)
10 The Pacific Securities Co., Ltd. (601099.SH)
11 Dongxing Securities Co., Ltd. (601198.SH)
12 Guotai Junan Securities Co., Ltd. (601211.SH)
13 Central China Securities Co., Ltd. (601375.SH)
14 Industrial Securities Co., Ltd. (601377.SH)
15 Soochow Securities Co., Ltd. (601555.SH)
16 Huatai Securities Co., Ltd. (601688.SH)
17 Everbright Securities Co., Ltd. (601788.SH)
18 China Galaxy Securities Co., Ltd. (601881.SH)
19 Founder Securities Co., Ltd. (601901.SH)
20 Shenwan Hongyuan Group Co., Ltd. (000166.SZ)
21 Northeast Securities Co., Ltd. (000686.SZ)
22 Guangdong Golden Dragon Development Inc. (000712.SZ)
23 Guoyuan Securities Co., Ltd. (000728.SZ)
24 Sealand Securities Co., Ltd. (000750.SZ)
25 GF Securities Co., Ltd. (000776.SZ)
26 Changjiang Securities Co., Ltd. (000783.SZ)
27 Shanxi Securities Co., Ltd. (002500.SZ)
28 Western Securities Co., Ltd. (002673.SZ)
29 Guosen Securities Co., Ltd. (002736.SZ)
30 First Capital Securities Co., Ltd. (002797.SZ)
31 East Money Information Co., Ltd. (300059.SZ)
1 CITIC Securities Co., Ltd. (600030.SH)
2 SDIC Essence (Holdings) Co., Ltd. (600061.SH)
3 Sinolink Securities Co., Ltd. (600109.SH)
4 Hebei Baoshuo Co., Ltd. (600155.SH)
5 Southwest Securities Co., Ltd. (600369.SH)
6 Haitong Securities Co., Ltd. (600837.SH)
7 Huaan Securities Co., Ltd. (600909.SH)
8 Orient Securities Co., Ltd. (600958.SH)
9 China Merchants Securities Co., Ltd. (600999.SH)
10 The Pacific Securities Co., Ltd. (601099.SH)
11 Dongxing Securities Co., Ltd. (601198.SH)
12 Guotai Junan Securities Co., Ltd. (601211.SH)
13 Central China Securities Co., Ltd. (601375.SH)
14 Industrial Securities Co., Ltd. (601377.SH)
15 Soochow Securities Co., Ltd. (601555.SH)
16 Huatai Securities Co., Ltd. (601688.SH)
17 Everbright Securities Co., Ltd. (601788.SH)
18 China Galaxy Securities Co., Ltd. (601881.SH)
19 Founder Securities Co., Ltd. (601901.SH)
20 Shenwan Hongyuan Group Co., Ltd. (000166.SZ)
21 Northeast Securities Co., Ltd. (000686.SZ)
22 Guangdong Golden Dragon Development Inc. (000712.SZ)
23 Guoyuan Securities Co., Ltd. (000728.SZ)
24 Sealand Securities Co., Ltd. (000750.SZ)
25 GF Securities Co., Ltd. (000776.SZ)
26 Changjiang Securities Co., Ltd. (000783.SZ)
27 Shanxi Securities Co., Ltd. (002500.SZ)
28 Western Securities Co., Ltd. (002673.SZ)
29 Guosen Securities Co., Ltd. (002736.SZ)
30 First Capital Securities Co., Ltd. (002797.SZ)
31 East Money Information Co., Ltd. (300059.SZ)
