Constrained by the business structure and operating attributes, the "market beta" characteristics of the industry have not changed significantly, and the long-term market downturn has formed a strong pressure on performance and valuation. At this point in time, the acceleration of capital market reform is expected to be a catalyst for the return of industry value.
The special author of this journal is Fang Fei.
On December 15, the China Securities Regulatory Commission approved Guolian Group to become the main shareholder of Minsheng, and Guolian Group was transferred to Minsheng 34 in accordance with the law7.1 billion shares, accounting for 30 percent of the company's total shares30%, according to the regulations, the two parties shall go through the equity change procedures within 30 working days.
The CSRC's approval of the change of major shareholders of Minsheng ** marks that the integration of Guolian ** and Minsheng ** has entered the substantive operation stage. When the integration is officially implemented, Guolian** will realize the rapid expansion of the overall volume and investment banking business scale.
Equal mergers quickly increase strength
In terms of volume, people's livelihood is on par with the League of Nations. Taking the data of 2022 as an example, the rights and interests of the League of Nations ** and Minsheng** are 167 respectively600 million yuan, 151500 million yuan, the industry ranked 38th and 45th respectively, and reached 319 after the merger100 million yuan, ranking 23rd;The total assets were 743800 million yuan, 589900 million yuan, the industry ranked 34th and 41st respectively, and reached 1333 after the merger700 million yuan, ranking 23rd.
Judging from the performance in 2022, the operating income of Guolian** and Minsheng** is 26200 million yuan, 25300 million yuan, ranking 37th and 40th in the industry respectively, and reaching 51 after the merger500 million yuan, ranking 23rd;The net profit attributable to the parent company was 7700 million yuan, 2100 million yuan, the industry ranked 32nd and 61st respectively, and reached 9 after the merger800 million yuan, ranking 29th.
The branches of Guolian ** are mainly concentrated in Jiangsu, while Minsheng** has a wider layout in Henan, and this geographical distribution makes the synergy between the two companies more significant. In terms of the provincial market share of the branches with transactions, the market share of Guolian** and Minsheng** in Jiangsu is %, and the market share in Henan is % respectively, and the combined market share of the two in Jiangsu and Henan will reach % respectively. Through complementary advantages and resource sharing, Guolian and Minsheng can better meet the needs of customers in different regions and enhance their overall competitiveness.
Minsheng**'s investment banking business ranks high in the industry, and the scale of brokerage business is comparable to that of Guolian**, and the integration of the two will greatly enhance the overall business level and competitiveness in terms of brokerage and investment banking business. Taking the data of 2022 as an example, the net income of Guolian** and Minsheng** brokerage business is 5500 million yuan, 800 million yuan, ranking 52nd and 41st in the industry, reaching 13 after the merger500 million yuan, ranking 25th in the industry;The net income of Guolian** and Minsheng** investment banking business was 4800 million yuan, 16100 million yuan, ranking 31st and 12th in the industry, and reaching 20 after the merger800 million yuan, ranking 7th in the industry.
The core management of Guolian has a background in CITIC and has rich experience in mergers and acquisitions, and has previously developed through refinancing, mergers and acquisitions of Zhongrong (now renamed Guolian**) and other methods. The approval of the integration plan marks that the integration of Guolian and Minsheng has officially entered a substantive stage, and the two companies will steadily promote the integration work. In the League of Nations**Obtain People's Livelihood**30After 3% of the equity becomes the largest shareholder, the remaining equity is partly held by investment management companies held by natural persons, and some are held by Shanghai state-owned assets and Shandong state-owned assets.
Guolian** integration of people's livelihood ** has entered the substantive stage: On March 15, 2023, Guolian ** announced that the company's controlling shareholder, Guolian Group, successfully bid for Minsheng**303% equity, transaction price 910.5 billion yuan;On April 10, the application materials for Minsheng ** to change the major shareholders or the actual controller of the company were accepted by the China Securities Regulatory Commission;On September 15, Minsheng**'s above-mentioned application was accepted by the China Securities Regulatory Commission;By December 15, the China Securities Regulatory Commission approved the application, and the dust finally settled on the equity change. In this approval, the China Securities Regulatory Commission stated that Minsheng ** should work with Guolian ** and Guolian Group to promote the integration of the company and Guolian ** in a steady and orderly manner in accordance with the direction and timetable determined by the preliminary integration plan submitted to the CSRC.
According to the analysis of Soochow**, Minsheng**'s investment banking business belongs to the first echelon of the industry, and the investment banking business income in the first half of the year was 107.2 billion yuan, ranking 7th in the industry, far exceeding Guolian** (investment banking business income in the first half of the year was 2.).8.1 billion yuan, ranking 24th in the industry). After the completion of the integration, the business scale of Guolian ** investment bank will achieve a rapid increase. Referring to the situation in the first half of the year, the combined investment banking business income of the two was 135.3 billion yuan, which can rank 7th in the current industry.
In order to achieve the goal of "cultivating first-class investment banks and investment institutions" mentioned in the first financial work conference, the China Securities Regulatory Commission stated in November that it would support the leading companies to become better and stronger through business innovation, group operation, mergers and acquisitions, etc. Since the CSRC set the tone, the mergers and acquisitions of securities firms have accelerated. On December 8, Zhejiang businessmen announced that they were going to transfer a total of 19The 16% equity is the first securities merger and acquisition case after the CSRC's statement. At the current stage, the policy environment for mergers and acquisitions in the industry is good, and with the strengthening of policy support, the tide of mergers and acquisitions in the securities industry will accelerate.