Huatai Securities launched a 2.6 billion repurchase plan. When will the investment outlet for brokerage stocks arrive?

Huatai Securities launched a 2.6 billion repurchase plan. When will the investment outlet for brokerage stocks arrive?
On the evening of April 7, Huatai Securities announced that it implemented the first repurchase through a centralized bidding transaction through the Shanghai Stock Exchange trading system53.120,000 A shares, accounting for 0 of the company’s total share capital.0059%, the total amount paid is RMB943.210,000 yuan (excluding transaction costs).2.6 billion shares repurchase start This is the first repurchase transaction completed on March 31 after Huatai Securities Bonds passed the repurchase program.According to the Air Force announcement, it is proposed not to exceed 28.The price of 81 yuan / share was repurchased 4538 within 12 months after the board approved the repurchase plan.330,000 shares to 9076.650,000 A-shares, as a source of stock to expand the stock equity incentive plan.The repurchase will be carried out with its own funds and the scale will not exceed 26.1.5 billion yuan.Usually, share repurchases of listed companies are often used for employee stock ownership plans and equity incentives, or to promote companies to continuously match intrinsic value and replace registered capital or other purposes according to law.This issue of stock repurchase belongs to the former intention.Huatai Securities once said in its announcement on March 31 that the repurchase of shares for the implementation of equity incentives is to actively respond to the policy guidance of the national government and regulatory authorities, enhance investor confidence, and protect shareholders’ rights.At the same time, it will deepen the merger company’s mixed ownership reform and establish a market-based mechanism for employees and companies to share benefits and share risks, which will further stimulate the company’s vitality.Last year, net profit increased by 80%. According to Huatai Securities’ 2019 annual report, Huatai Securities achieved operating income of 248 last year.6.3 billion, an annual increase of 54.35%; net profit attributable to mother 90.01 billion, an annual increase of 78.86%.The current fully diluted EPS is 0.99 yuan / share, an increase of 62.6%; ROE is 7 after deduction.80%, up 2.5 averages.At the end of the period, the BVPS attributed to ordinary shareholders was 13.50 yuan / share, the performance is in line with expectations.In terms of specific performance, self-operated business has become an important driver of Huatai Securities’ 2019 performance growth.In 2019, Huatai Securities realized net investment income + net income from changes in fair value totaling 119.6.0 billion, an annual increase of 47.89%, the income from transactional financial asset disposal was -41.700 million turned losses into a profit of 36.800 million yuan.At the end of the year, the self-employment market reached 2325.07 billion yuan, an increase of 131% over the beginning of the year.The brokerage business is in a leading position in the industry.Realize the net income of brokerage business procedure fee 41.0.88 million yuan, an increase of 16.52%, the total fund transaction volume per share is 20.57 trillion yuan, an annual increase of 37.95%, the market share increased from 7 in the same period last year.10% rose to 7.53%, ranking first in the industry.In addition, under the empowerment of financial technology, it has transformed into wealth management, and the online intelligent service APP “Zhangle Fortune Link” has reached 779 monthly activities.40,000, ranking first in the industry.In terms of investment banking business, net investment banking business revenue was achieved19.4.7 billion, an annual increase of 7.83%.It is worth noting that Huatai Securities ranked first in the industry by replacing the 19 companies with science and technology board companies, but the main board IPO business volume has shrunk, and the amount of IPO underwriting has been reduced to 67.10ppm, the average ratio of ten years is 64.26%.In terms of self-managed business, it realized net income from asset management business27.7.2 billion, an annual increase of 11.15%.In recent years, many brokers have launched a repurchase plan. According to winddata statistics, from January 1, 2019 to April 8, 2020, Guosheng Financial Holdings, Huachuang Yangan, Hart Investment, China Merchants Securities, Soochow Securities,Seven brokerage firms including Huatai Securities and Founder Securities implemented a repurchase plan.Among them, Huachuang Yangan has completed two equity repurchase plans. According to the latest (April 3, 2020) announcement, Huachuang Yangan has gradually repurchased 1361 shares through centralized bidding transactions.09,000 shares, accounting for 0 of the company’s total share capital.78%, the budget of funds paid is 1.6.2 billion yuan.According to the plan, Huachuang Yangan plans to use 2.5 ppm to 500 million funds to repurchase company shares for employee stock ownership plans.Prior to this, Huachuang Yangan has completed two stock repurchase programs in July and December 2019, respectively.The chief officer pointed out that the share repurchase of listed companies plays an important role in optimizing the capital structure, stabilizing the company ‘s control rights, enhancing the company ‘s investment value, and establishing and improving the investor return mechanism.Through the implementation of the repurchase plan to increase the target value and promote the entry of incremental funds into the market, it is conducive to providing strong support for gradual stability, releasing positive signals to the market, reducing market panic, and maintaining stable and healthy development of the market.So, does the brokerage sector have investment value in the near future?CITIC analysts believe that under the policy line of supporting the resumption of production and hedging economic growth, the brokerage sector will be disturbed by the global epidemic and risk aversion in the short term, but the medium and long term is driven by loose monetary policy and capital market reformsStrengthen the uplink: adjustments, “stable and flexible monetary policy” will help the capital market to maintain ample funds, which is conducive to the development of traditional business of securities companies; gradually, the reform blueprints represented by the 12 deepening of capital market reforms have gradually landed.The medium and long-term funds will enter the market to protect and escort, and open up new business boundaries for the securities industry.The Industrial Bank non-bank analyst team also believes that the brokerage sector’s long-term bullish logic remains unchanged, and the short-term market risk appetite is at a low level. The brokerage firm estimates that it will continue to bottom out and recommends focusing on overseas risk inflection points.Sauna, Ye Wang Zhang Siyuan Editor Xu Chao proofreading Chen Diyan