On the first day of July, there were two good news in the brokerage sector

National Business Daily

2024-07-01 22:27The official account of National Business Daily

Every reporter: Wang Yandan Every editor: Zhao Yun

In June, the A-share market fluctuated, and the 3,000-point mark of the Shanghai Composite Index fell at the end of the month, and the brokerage sector, which is the market vane, also adjusted.

However, on the first trading day of July, there was good news in the brokerage sector. After the market on July 1, Tianfeng Securities announced that from June 11, 2024 to July 1, 2024, the company's controlling shareholder, Hubei Hongtai Group Co., Ltd., has increased its holdings of 86,709,200 shares of the company in the secondary market through the Shanghai Stock Exchange trading system, accounting for 1% of the company's total shares. Yuexiu Capital also announced that as of June 30, 2024, the company has repurchased a total of 18.2501 million shares, accounting for 0.3638% of the company's current total share capital.

It is worth mentioning that before the announcement, Tianfeng Securities hit a record low on July 1, and Yuexiu Capital also fell by more than 10% in June.

On June 11, it was announced that it would increase its holdings before the market, and about 200 million yuan had been spent in the first round

Tianfeng Securities' increase in holdings dates back to June 11.

On June 7 (Friday), affected by market rumors, the stock price of Tianfeng Securities suddenly crashed. On the same day, more than 1.05 million lots closed the fall limit, and the stock price closed at 2.37 yuan per share. That night, Tianfeng Securities urgently issued a clarification announcement.

On June 11, Tianfeng Securities once again issued a pre-market announcement: based on the recognition of the company's long-term investment value and future development prospects, the company's controlling shareholder, Hubei Hongtai Group (hereinafter referred to as Hongtai Group), intends to increase its holdings of the company's shares by centralized bidding, with an amount of not less than RMB 500 million and no more than RMB 1 billion.

From June 11 to July 1, it has increased its holdings of 86,709,200 shares of Tianfeng Securities in the secondary market through the Shanghai Stock Exchange trading system, accounting for 1% of the total number of shares of Tianfeng Securities. After the increase, Hongtai Group directly holds 1.286 billion shares of the company, accounting for 14.84% of the total shares of Tianfeng Securities, and Wuhan State-owned Capital Investment and Operation Group Co., Ltd., which acts in concert with it, holds a total of 2.047 billion shares of the company, accounting for 23.62% of the company's total shares.

Judging from the trend of the secondary market, Hongtai Group has a total of 15 trading days during this round of holdings, and Tianfeng Securities continued to fall, hitting a record low price of 2.16 yuan on July 1, and the highest price was only 2.45 yuan. According to the estimation of the average price of 2.30 yuan, this round of holdings of Hongtai Group spent a total of about 199 million yuan.

Yuexiu Capital repurchased about 13.96 million shares in June

In addition to Tianfeng Securities, on the evening of July 1, Yuexiu Capital also released good news.

On the evening of April 29, Yuexiu Capital announced that it intends to use its own funds of not less than 100 million yuan and no more than 200 million yuan (including transaction costs, excluding the principal number) to repurchase some of the company's issued RMB ordinary shares (A shares) by centralized bidding in the secondary market.

On the evening of May 30, Yuexiu Capital issued its first repurchase announcement. According to the announcement, on May 30, 2024, the company repurchased about 4.29 million shares of the company for the first time through the special securities account for share repurchase in a centralized bidding manner, accounting for 0.0856% of the company's current total share capital, with the highest transaction price of 5.45 yuan per share and the lowest transaction price of 5.35 yuan per share, and the used funds were about 23.26 million yuan.

According to the announcement on the evening of July 1, as of June 30, 2024, the company repurchased 18.2501 million shares of the company through a special securities account for share repurchase in a centralized bidding manner, accounting for 0.3638% of the company's current total share capital, with the highest transaction price of 5.59 yuan/share, the lowest transaction price of 5.35 yuan/share, and the used funds of 100 million yuan (including transaction costs).

Compared with the first repurchase announcement released in May, Yuexiu Capital repurchased about 13.96 million shares in June, spending about 76.74 million yuan. However, Yuexiu Capital fell 10.47% in June, and closed below the $5 mark on June 30.

It is worth mentioning that as an important shareholder of CITIC Securities, Yuexiu Capital has also made important commitments before. On the evening of March 8, CITIC Securities announced that Yuexiu Capital and its subsidiary Guangzhou Yuexiu Capital made a commitment to extend the restriction period of the company's shares held by them, and the board of directors of Yuexiu Capital decided to extend the restriction period of 931 million A shares of CITIC Securities held by Yuexiu Capital and Guangzhou Yuexiu Capital for 6 months. The shares were supposed to be released on March 10, with an extended lock-up period until September 10, 2024. At present, although the share price of CITIC Securities has fallen, the value of the above shares is still more than 16 billion yuan.

Analyst: The PB valuation of the brokerage sector is close to 1 times and has a strong allocation value

Recently, there has been a large correction in the brokerage sector. Especially on the last trading day of June, the flash crash of Oriental Wealth led to a decline in the entire sector.

On July 1, although the Shanghai Composite Index rose intraday and approached the 3,000-point mark, the overall performance of the brokerage sector was average, and Caida Securities, which had the largest single-day gain, only rose 3.49%.

In this regard, Cinda Securities pointed out that last Friday's decline in the brokerage and stock trading software sectors may be affected by the implementation of the public offering fee reduction policy. According to the "Regulations on the Management of Securities Transaction Costs of Publicly Offered Securities Investment Funds" issued by the China Securities Regulatory Commission on April 19, the document will be officially implemented from July 1, and last Friday is the last trading day before the document takes effect. The decline in institutional trading commissions may lead to a decline in the income of the brokerage trading seat leasing business, and the third phase of the "public offering fee reform" may be expected, or it may lead to investors worrying about the contraction of the industry's business scale and the decline in profitability.

However, Cinda Securities said that on the one hand, the current decline in institutional trading commission rates has little impact on the profitability of the securities industry. According to estimates, institutional commissions have been reduced from 8 to 5 thousand, and the reduction in transaction commissions is roughly equivalent to 2% of the industry's revenue. On the other hand, from the perspective of overseas experience, the decline in mutual fund rates first hit the channel side, but also catalyzed the formation of institutionalization and buy-side investment advisory mechanisms, and the scale of mutual funds continued to increase. At present, the valuation of the brokerage industry has been at a historically low level, but the asset quality of brokerages is reliable, and the brokerage sector with PB close to 1 has strong allocation value.

National Business Daily

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