Securities industry placement ceiling citic securities to consolidate leading position
Financial investment network reporter Lin Ke after 11 months of waiting for Citic Securities (600030) rights issue finally landed.As the largest rights offering in the history of the securities industry, Citic Securities will further increase its capital strength and consolidate its leading position after the completion of rights offering.For Citic Securities successful rights issue, many brokers in the industry are also optimistic, while further raising the company’s target price.Allotment to promote comprehensive strength of the last large-scale allotment or China Merchants securities.In July 2020, China Merchants Securities issued a rights offering announcement, raising a total of nearly 13 billion yuan.This time, Citic Securities rights issue directly expanded the amount of funds raised to 22.4 billion yuan, refreshing the largest rights issue in the history of the securities industry.It can be seen that as early as February 2021, Citic Securities first issued the pre-plan for public offering of securities through rights offering. After 11 months of various processes, the company finally landed the rights offering.After the market on January 26, Citic Securities announced that as of the closing date of subscription and payment of the a-share rights issue, the effective subscription number of CITIC Securities A-share rights issue was 1.55 billion shares, accounting for 97.17% of the total number of 1.597 billion shares available.The a-share rights issue of CITIC Securities was successful because it exceeded the lower limit of the subscription rate that “the number of shares subscribed by the original shareholders did not reach 70% of the planned allotment amount” as stipulated in the Administrative Measures on Securities Issuance of Listed Companies of China Securities Regulatory Commission.The total subscription amount of investors was about 22.4 billion yuan, of which, Citic Securities’ largest shareholder China Citic Limited subscribed about 4.33 billion yuan, fulfilling its commitment.According to the announcement, citic Securities intends to use the total amount of funds raised after deducting the issuance fees to develop capital intermediary business, increase investment in subsidiaries, strengthen information system construction and supplement other working capital.After the completion of this issue, the main business of the company will remain unchanged, and the capital strength of the company will be further enhanced, which is conducive to enhancing the comprehensive strength of the company at home and abroad, improving and enhancing the business layout in an all-round way, and actively participating in international competition.Citic Securities’ A-share rights offering has been implemented, and the company originally planned to raise no more than 28 billion yuan in A+H shares, followed by the H-share rights offering, according to the announcement of the h-share rights raise no more than 4.935 billion yuan.In the secondary market, Citic Securities opened high and quickly fell, then continued to narrow range volatility pattern, finally closed at 24.15 yuan, slightly lower than before the suspension 0.33%.Expected to ushered in the valuation repair citic Securities rights issue landing will enhance the company’s hard power, stable leading position, a number of brokers have praised.The company’s performance in 2021 exceeded market expectations, and it is expected to further drive performance growth after the rights offering in 2022.From the performance forecast released by Citic Securities, preliminary accounting data show that the company will achieve operating revenue of 76.570 billion yuan in 2021, a year-on-year growth of 40.80%;Net profit attributable to shareholders of the parent company reached 22.979 billion yuan, up 54.20% year on year and exceeding the market consensus.Hu Xiang, an analyst at Soochow Securities, said citic’s 2021 results slightly exceeded our expectations.It is expected that after the completion of the rights offering, the company’s capital will be further consolidated, and citic Securities, as a leading broker, will have outstanding professional ability. The strong institutional business is expected to become a new growth point of performance.Zhang Jingwei, an analyst with Principal Securities, believes that Citic Securities will mainly invest in the capital intermediary business this time, and expects the company to enhance its capital strength and optimize its business structure after completing the rights offering in 2022, so as to drive steady growth in performance.The comprehensive strength of the company leads the industry. Considering that institutional business is a definite growth business derived from wealth management, the company, as the leader of institutional business, is expected to open up business development space after the completion of rights offering and further drive performance growth.From last year’s high back up to now, Citic Securities valuation has fallen to nearly five years low, with the continued growth of performance, the main background of rights offering, the company’s valuation repair expectations.Wang Simin of Everbright Securities said that the industry valuation is historically low from the perspective of the industry, and we believe that driven by expectations of high performance growth in 2022, the industry valuation has some room for repair.And considering the company’s rights issue refinancing landing, the company’s valuation is expected to accelerate repair in the short term.As the reform of securities industry continues to deepen, leading advantages will be more prominent.Expectations are good, the major brokerage given citic Securities target price has been repeatedly raised.Liu Min, analyst of Caixin Securities, pointed out that Citic Securities was in a leading position in all its businesses, and the company’s transformation of asset management, self-management and wealth management had a leading advantage in the transformation and transformation of the industry.In 2022, the company, as a leading broker, is expected to become a big beneficiary of the industry under the favorable policies of the reform of the whole market registration system and the market maker system to be tried out by the Science and Technology Innovation Board.With the policy support of building an aircraft-class leading securities broker, and with the company’s strong capital strength and leading business capabilities, we continue to look forward to the steady growth of the company’s future performance.Considering the company’s stable leading position and stable performance and other factors, we believe that it is reasonable to give the company 1.6-1.9 times price-to-book ratio in 2022, and the reasonable range of the corresponding stock price is 28.93-34.35 yuan.