Xin Lang Cai Jing·2025-03-31 03:42Core Insights - The A-share market experienced fluctuations with the CSI Securities Index dropping by 1.69% on March 31, 2023, while the leading securities ETF (560090) saw a decline of 1.68% and a premium of 0.18% during the day [3][6]. Industry Performance - As of March 28, 2023, 150 securities firms reported a total revenue of CNY 451.17 billion and a net profit of CNY 167.26 billion for the 2024 fiscal year, marking the highest revenue and profit in nearly three years [3]. - A total of 28 listed securities firms reported cumulative revenues of CNY 427.51 billion, reflecting a year-on-year increase of 6.16%, and net profits of CNY 125.56 billion, up 15.27% year-on-year [4]. Mergers and Acquisitions - Xiangcai Securities announced a merger with Dazhihui through a share swap, intending to issue A-shares to raise up to CNY 8 billion, which will increase its total share capital to 5.153 billion shares [3]. - The merger trend in the securities industry is expected to continue, driven by policies supporting mergers and acquisitions, indicating a shift towards supply-side reforms [3][6]. Financial Performance of Major Firms - Major securities firms such as CITIC Securities, Guotai Junan, and China Galaxy reported net profits exceeding CNY 10 billion, with Guotai Junan and China Galaxy returning to the "100 billion net profit club" [5]. - The performance of various firms varied, with CITIC Securities achieving a revenue of CNY 63.79 billion and a net profit of CNY 21.70 billion, while Guotai Junan reported a revenue of CNY 43.40 billion and a net profit of CNY 13.02 billion [5]. Market Outlook - The securities sector is expected to see significant recovery in 2024, driven by favorable policies, increasing proprietary income, and a low base effect from 2023 [6][7]. - The valuation of the securities sector is considered to have substantial upward potential with limited downside risk, as the current PB ratio is around 1.44, which is within a moderate range compared to the past five years [7].