The pace of brokerage mergers and acquisitions are being added

Reporter Li Shuo Shanghai reported

The pace of brokerage mergers and acquisitions is accelerating.

21st Century Business Herald reporter recently learned from market sources, Shenwan, Hongyuan Securities (000562.SZ) merger program will be "before the end of the landing." With the opening ceremony involving the capital consolidation feast of the two big brokerage firms in the industry, the demonstration effect of industry mergers and acquisitions will also spread.

In fact, from the merger of Founder Securities and National Securities, to the upcoming reorganization plan between Hongyuan and Shenwan brokerage firms, the rise of broker mergers and acquisitions is not unrelated to the industry's ever-increasing need for financing and consolidation in recent years .

At the same time, some brokerage firms reorganization into real operation at the same time, the merger and acquisition effect can achieve 1 +1> 2, still waiting for time to verify.

Financing, consolidation and then increase demand

Behind the quiet diffusion of the securities industry M & A effect, the industry is constantly raising financing and integrating demand.

Take short-term financing bills as an example. According to statistics from iFinD, the short-term financing bills issued by brokerage firms in the inter-bank market amounted to 136 in this January-June period with a total financing of nearly RMB220 billion.

Including China Merchants Securities (600999.SH) and GF Securities (000776.SZ) brokerage issued the most number of issues, the number of times reached 9 times, respectively, the size of 17.7 billion yuan and 24.5 billion yuan.

In the opinion of the insiders, an important reason for the increase in financing activities is the rapid increase in the proportion of innovative businesses such as brokerage capital intermediaries.

"The future brokerage commission income will be less and less, the charging method will also be with the international standards, that is, according to the pen to the deal." Beijing, a brokerage said that "the direction of the securities brokerage restructuring capital intermediary business, such as margin trading business , After which it will reach 20% of the brokerage's revenue. "

However, such changes have taken shape in last year's changes in brokerage performance.

Securities Association data show that in 2013 115 securities companies Acting securities trading business of net income of 75.921 billion yuan, up 50.62% year-on-year, but its growth rate with the margin financing emerging securities represented by the emerging capital agency business still dwarfed .

In 2013, interest income from margin financing of securities companies reached RMB18,462 million, an increase of 280.99% from RMB5,260 million in 2012.

In addition, the upcoming third-board market maker business will also further exacerbate the demand for funds by brokerages.

According to Sui Qiang, assistant general manager of the National Equities Exchange and Quotations Administration, said more than 60 brokers will be qualified as market makers this month.

"Market makers are bilateral transactions, brokers have to ensure that the hands of coupons have money." Shenyin & Wanguo Securities, an off-site business people said.

"The combination of capital and channels, some brokers have the capital advantage, while others have paved the way in this transformation process, the industry's demand for integration will also be increased." The above brokerage executives admitted.

M & A effect still to be verified

In fact, the wave of mergers and acquisitions in the securities industry has entered an intensive practice.

On July 19, Founder Securities (601901.SH) announced that its merger with National Securities had been unconditionally approved by the regulators. According to Founder announcement announced the acquisition details of the disclosure, Founder will be 6.09 yuan / share price of directional placement of 2167755400 shares to complete the acquisition, and the total valuation of ethnic securities is about 13.02 billion yuan

According to Founder Securities disclosed that after the completion of the merger, the national security Founder Securities will be a wholly owned subsidiary of the existence of the subsidiary, and the completion of the merger, the total assets of Founder Securities is expected to exceed 50 billion yuan in scale.

July 10, Founder Securities announced that it expects to achieve attributable to shareholders of listed companies net profit increased 70% to 100% over the previous year.

At the same time, Shen Wan, Hongyuan two brokerage firm's restructuring is expected to basically settled.

Recently, Shen Jianhong Li, chairman of the board of directors Shenyin Wanguo Securities Strategy Conference revealed that Shenwan, Hongyuan's acquisition has been the State Department, the Central Huijin and other multi-party support, the two companies recently have set up a joint temporary party committees, presided over the reorganization Matters, and its related business has also begun to integrate.

2013 data show that Hong Yuan Securities total assets of 32.1 billion yuan, operating income of 3.7 billion yuan, net profit of 1 billion yuan; Shenyin Wanguo total assets of 59.8 billion yuan, operating income of 5.1 billion, net profit of 1.7 billion.

After the merger of the two companies, it will produce a large brokerage with total assets of over 100 billion yuan, annual operating income of over 8.8 billion yuan and net profit of over 2.7 billion yuan. Revenue ranking will jump to the first place. After the merger is expected Shenwan Hong Yuan Securities total share capital will reach 130 million shares in the total share capital become the largest securities firms in both cities.

However, the performance of Hongyuan Securities in the first half of this year slightly underperformed, the first half of Hong Yuan Securities operating income of 2.147 billion yuan, down 11.59% from the previous year; net profit attributable to equity holders of 734 million yuan, a decrease over last year 12.15%. The decline in corporate performance was mainly affected by the self-employed business.

July 7, Guotai Junan also acquired the Shanghai Securities Regulatory Commission approved the program. According to the plan, Guotai Junan proposed to acquire a 51% stake at a price of 3.571 billion yuan. Upon completion of the acquisition, Guotai Junan will directly control Shanghai Securities.

After the merger, the total assets will reach 131.8 billion yuan, operating income of 8.3 billion yuan, net profit of 2.6 billion yuan, a number of indicators closely tracked CITIC Securities. Among them, the operating income is expected to exceed CITIC Securities, a new giant in the industry.

In addition to the restructuring cases that are taking place, some rumors of the reorganization of brokerage firms are also moving between markets. Last November, there were also rumors in the market that the merger between Changjiang Securities and Guangzhou Securities would be brewing, but the news was later denied by multiple parties. The acquisition of Galaxy Securities and CIC Securities under the Huijin Department has also been circulating for a long time.

It is worth mentioning that, while the wave of mergers and acquisitions brokerage comes, its actual effect is still to be time tested.

"Not only relying on the traditional commission income, the era of differentiation and market consolidation may come at the same time." An AMC broker researcher pointed out that "but the industry M & A can achieve 1 + 1> 2, still need Look at the actual performance after the reorganization. "