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With the stock price plummeting and earnings shrinking, where is the “top allocation” brokerage?
Source: Securities Industry Expert
With the stock price plummeting and earnings shrinking, where is the “top allocation” brokerage?
Experts in the securities industry speak the facts.
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After the “Golden Union” merger failed, it was soon made public.Guolian values, Suffering “failures”: Not only did the stock price continue to fall, but the growth rate of net income from the third quarterly report also registered negative values.
What is the root cause? Experts who continue to pay attention to Guolian’s values are lost in thought.
Negative net profit growth in the first three quarters
Following the negative net gain in the interim report, Guolian Securities’ last three quarterly reports still failed to reverse the downtrend:
In the first three quarters, operating income was 1.365 million yuan, a year-on-year increase of 13.01% from 1.208 million yuan in the same period of 2019; net profit attributable to shareholders of listed companies was 459 million yuan, a year-on-year decrease of 3.92%.
Taking a closer look at single-quarter performance, in the third quarter of this year, Guolian Securities’ revenue and net profit increased 52.21% and 13.46% YoY; Revenue and net profit in the second quarter increased 19.34% and 50.87%, while Profit fell 14.23% and 22.37% respectively.
In other words, in terms of time, Guolian Securities’ net income was down significantly in the first quarter of this year and the impact has continued to this day.
The credit business has decreased significantly
According to the consolidated income statement, the expert classified the main commercial data of Guolian Securities:
Private companies raised 473 million yuan in the first three quarters, an increase of 44.56% over the same period in 2019; This was mainly due to the increase in income from investments from holding and disposing of transactional financial assets.
Brokerage business income (in terms of net income from the securities brokerage business) ranked second. The first three quarters raised 410 million yuan, an increase of 41.93% year-on-year.
Income from the investment banking business (calculated in terms of net income from the securities underwriting business) also increased significantly. In the first three quarters, it raised 193 million yuan, an increase of 41.53% year-on-year.
Asset management business income (net income from entrusted client asset management business) represented a relatively low proportion. The first three quarters raised 44 million yuan, an increase of 23.85% year-on-year.
The income from the credit business alone fell to 238 million yuan, a year-on-year decrease of 40.08%. In specific item terms, Guolian Securities’ interest expense increased strongly in the first three quarters, resulting in a decrease in net interest income.
The industry senior management team
It doesn’t matter from any perspective, Wuxi-based Guolian Securities is classified as a medium-sized brokerage firm. However, in terms of personnel trends, Guolian Securities can be called the “best option” in the industry.
Among the eight current senior executives at Guolian Securities, including one officer and two associates, five are from the securities industry.CITIC values：
Mr. Ge Xiaobo, 50-year-old President and CFO, joined CITIC Securities in 1997 and has held various positions for more than 20 years. According to the CITIC Securities 2018 annual report, Ge Xiaobo, then chief financial officer, member of the executive committee, and chief risk officer of CITIC Securities, had an annual salary of 15.6687 million yuan that year, the highest among executives of firms values. In April 2019, Ge Xiaobo joined Guolian Securities.
Ms. Yin Hongwei, Vice President, previously served as General Manager of CITIC Securities Shenzhen Commercial Department, General Manager of Shenzhen Branch, and Executive General Manager of Wealth Management Department. He has been the Director of Wealth of the Guolian Securities Division since April 2019 and has been the Vice President since February 2020.
The other vice president, Mr. Li Qin, previously worked in the risk management department of CITIC Securities.Founder’s valuesDeputy Director General and Administrative Director of the Risk Management Department.
Mr. Wang Jie, secretary of the board of directors, once served as director of the human resources department, executive general manager, managing director, head of administration of CITIC Securities department and director of human resources of CITIC Shandong.
Chief Information Officer Mr. Wang Jinling previously served as the B-corner and CEO of CITIC Securities Information Technology Center.
According to media reports, Wang Dongming, the lifeblood of CITIC Securities, is currently serving as a consultant for Guolian Securities.
However, why did the CITIC Securities senior management team not contribute the performance of Guolian Securities?
The main camp is still limited to this province.
Experts have noted that Guolian Securities recently released the 2021 school recruitment requirements. In addition to the more demanding headquarters positions, many branches and sales departments in Jiangsu Province are currently recruiting a large amount of “fresh blood” for supplement basic positions.
In fact, Guolian Securities current business and clients are mainly concentrated in Jiangsu Province.
According to the 2020 Interim Report, Guolian Securities currently has 13 branches, of which 7 are located in Jiangsu Province, accounting for 53.85%; There are 87 securities trading departments, of which 60 are in Jiangsu Province, accounting for 68.97%.
In terms of performance by region, revenue and profit in Jiangsu province also account for the vast majority. In the first half of the year, the operating income in Jiangsu Province was 763 million yuan, a year-on-year decrease of 5.45%; operating profit was 420 million yuan, a year-on-year decrease of 26.59%. Guangdong, Shanghai, Shandong, Beijing and other places have different degrees of revenue growth, but only Shanghai has recorded a positive increase in operating profit, and its share is relatively high.
Faced with this situation, Guolian Securities seems to have taken action.
On the eve of National Day, the Guolian Securities board of directors made a resolution to dismantle the Subei branch, and follow-up work will be carried out such as personnel placement, client placement, asset disposal and business closure. On October 28, the Guolian Securities board of directors again resolved to abolish three securities trading departments, but the announcement did not reveal what they were.
In the last two months of 2020, Guolian Securities has started both by optimizing its design and bringing in talent. Can you boost your performance in the season-ending?
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