Backed By Big Trees In State-Owned Banks And Refinancing Business, "The First Brokerage Company In The Rat Year" Has Won A Strong Reputation In The Bank Of China Securities.

In February 19th, 601696.SH announced the results of its initial public offering, and finally decided that the issue price of the stock was 5.47 yuan / share and the issue amount was 278 million shares.

2373 times the initial effective purchase multiplier on the Internet, making it back to the net after the final issuance accounted for 90%, the final success rate of 0.1264%, the Bank of China Securities is touted by individual investors.

Personal investors

From the perspective of the subscriber composition, the initial issuance amount of the network is 70%, and the initial issuance amount of the network is 30% before the callback mechanism starts. After the callback mechanism is launched, the final circulation amount of the network is 10%, and the net final issue volume is 90%.

In this regard, investment bankers explain that the "callback mechanism" is a regulatory regulation. Online investors have more than 150 times the effective purchase value. After the callback, the proportion of the non lock regular network will not exceed 10% of the number of shares issued. "Generally speaking, the online purchase is mainly individual investors, and the online purchase is mainly institutional investors. Bank of China Securities had initially purchased 2372.63 times the initial effective purchase and was touted by individual investors, so the call back mechanism was launched.

From the overall issuance results, the final success rate of Bank of China securities online issuance is 0.1264%, compared with the other 7 listed brokerages in the past two years, the winning rate is at a low value, and a low success rate indicates a higher investor enthusiasm.

It can be compared that in the 2018-2019 year listed brokerages, the final success rate of IPO online issuance is low to high: Nanjing securities (0.1210%), Hualin securities (0.1358%), Hongta securities (0.1513%), CITIC construction investment (0.1575%), the Great Wall securities (0.1611%), Huaxi Securities (0.1628%), Tianfeng securities (0.2462%).

When the issue is so popular, what will the stock price trend of the bank be listed after?

In this regard, Shen Wan Hongyuan Institute said, considering the liquidity premium level and absolute price, the Bank of China Securities AHP (analytic hierarchy process) score was 1.62 points, located in the first 4 batches of new shares in 2020.

Relying on brokerage and information management business

To dismantle the business structure of Bank of China Securities, we can see that the two pillar businesses of Bank of China securities are brokerage and information management business.

According to its 2018 business data, the ranking of Bank of China securities business is ranked as follows: securities brokerage business (48.43%), asset management business (31.46%), investment banking business (6.97%), securities self operated business (4.38%), futures business (4.17%), other businesses (3.16%), and private equity investment business (1.42%).

However, judging from the specific industry ranking of securities brokerage business, Bank of China Securities is not in the first tier.

The data show that from 2016 to 2018, the income of the company's Securities Trading (including the rental net income of the trading units) was 829 million yuan, 599 million yuan and 449 million yuan respectively, ranking thirty-fifth, 36 and 36 respectively; the interest income of margin trading was 640 million yuan, 613 million yuan and 549 million yuan respectively, and the industry rankings were twenty-fifth, 25 and twenty-fifth respectively. Interest income was 117 million yuan, 429 million yuan and 679 million yuan respectively, and the industry ranked thirty-ninth, 22 and 17 respectively.

By contrast, the asset management business of the company has a slight advantage.

From 2016 to 2018, the revenue of the company's customer asset management business was 318 million yuan, 499 million yuan and 560 million yuan respectively. The industry ranked twenty-second, 17 and 11 respectively. In the 2016-2017 years, the clients' assets management monthly funds were 568 billion 107 million yuan and 677 billion 716 million yuan respectively, and the rankings were eighth and 6 respectively.

The investment banking business (6.97%), which has contributed third of the company's revenue, has developed in recent years.

From the perspective of investment banking, in the past 2016-2018 years, the investment banking revenue of the company was 587 million yuan, 432 million yuan and 203 million yuan respectively, ranking thirty-fifth, 34 and 46 respectively. The income of underwriting and sponsorship business was 502 million yuan, 379 million yuan and 150 million yuan respectively, and the industry names were thirty-second, 150 million and thirty-second respectively.

Behind the fluctuation of the ranking, or related to the main underwriting business of the stock.

In 2016-2018 years, the number of main underwriters in the company was 11, 12 and 4 respectively. The main underwriting amount of the company was 29 billion 177 million yuan, 29 billion 580 million yuan and 10 billion 352 million yuan respectively, and the business in 2018 declined considerably.

However, although the main business of stock is fluctuating, the main underwriting of Bank of China Securities has made rapid progress.

In the 2016-2018 years, the number of bond underwriters was 69, 59 and 138 respectively. The principal underwriting amount of the bond was 74 billion 825 million yuan, 101 billion 187 million yuan and 171 billion 9 million yuan respectively, ranking 19, 12 and 8 respectively.

Besides, the refinancing business of Bank of China Securities is also commendable.

Bank of China Securities currently holds more than 5% shareholders in BOC International Holdings, PetroChina capital, financial development fund, cloud investment group and Jiang Tong shares. Among them, the shareholding ratio of BOC is 37.14%.

Backed by large state-owned banks, the Bank of China Securities is mainly owned by large state-owned enterprises, and its advantages include transportation infrastructure, finance, culture and media. In recent years, it has been actively developing innovative private enterprises.

Subdivision of the company's stock business, Bank of China Securities in the development of refinancing is more rapid. In the first half of 2016-2019, the underwriting amount of Bank of China securities underwriters' refinancing projects ranked 24, 11, 7 and 3 respectively.

With the relaxation of the refinancing rules, the securities firms with high investment flexibility and large reserves will have opportunities for development. The stable development of Bank of China Securities in refinancing will bring more room for growth.