According to the announcement of Industrial Securities, the company's rights issue officially entered the payment period on August 17, and investors who intend to issue rights need to subscribe for the rights issue in the share custody brokers during the payment period. So today Bian Xiao is here to sort out the relevant knowledge of Industrial Securities. Let's have a look!

Force four major business directions

Industrial Securities said that the total amount of funds raised by this rights issue is not expected to exceed 654.38+04 billion yuan. After deducting the issuance expenses, it is intended to be used to increase the company's capital, supplement working capital, serve the development of the real economy and meet the wealth management needs of residents, and comprehensively enhance the company's market competitiveness and anti-risk ability.

According to the previous announcement of Industrial Securities, the rights issue is mainly invested in four business sectors.

First, no more than 7 billion yuan will be used to develop margin financing and securities lending business;

Second, no more than 654.38+08 billion yuan is used to develop investment banking business;

Third, no more than 4.5 billion yuan will be used to develop investment trading business;

Fourth, no more than 700 million yuan will be used to increase investment in information systems and compliance risk control.

Industrial Securities said in the announcement that the margin financing and securities lending business is conducive to improving the capital utilization rate of investors and can provide investors with diversified investment opportunities and risk avoidance means. Driven by policies such as expanding the scope of supervision, optimizing the trading rules of margin financing and securities lending, and relaxing the restrictions on the rise and fall of science and technology innovation board and growth enterprise market, it is increasingly favored by high-net-worth customers and professional institutional investors.

At the same time, the margin financing and securities lending assets are inseparable from the account, and the risks are relatively controllable. The account-opening brokers stand out, and gradually become an important tool for major brokers to acquire and retain high-net-worth customers, product customers and professional institutional investors, with high comprehensive business effects.

"In recent years, the market share of Industrial Securities' financial services has continued to increase, building a good growth trend. However, margin trading is a capital consuming business. Limited by the scale of net capital, the company's sustained business growth faces a big bottleneck. It is urgent to replenish net capital, open up business growth space and ensure the continuous growth of business scale. " Industrial Securities said in the announcement.

For the investment banking business, Industrial Securities said that in the context of the registration system, in the past two years, a number of brokers have greatly enhanced the capital strength of alternative subsidiaries that perform the registration system and investment duties, and at the same time actively explored the establishment of large-scale industrial funds in cooperation with local governments and state-owned enterprises to empower the real economy, cultivate future investment banking reserve projects, and take a number of measures to seize the development opportunities of investment banking business.

In the future, Industrial Securities will increase the allocation of contracted funds for strategic customer projects, seize the development opportunity of national strategic emerging industries, enhance the capital strength of two subsidiaries, namely Xingzheng Investment Management Co., Ltd. and Xing Zheng Innovation Capital Management Co., Ltd., which have registered follow-up investment and primary market equity investment licenses, and strengthen the cultivation of follow-up investment and industrial investment. At the same time, it will strengthen the same project reserves of large investment banks in promoting the rapid development of potential innovative and entrepreneurial enterprises and promoting the national industrial policy and industrial structure upgrading goals.

Industrial Securities also regards investment trading business as a strategic business that needs to be developed in the future.

Industrial Securities said that with the improvement of market institutionalization, the investment trading business aimed at meeting the rapid growth of institutional investors' trading and risk hedging needs has gradually become a key link in the customer differentiation ability of brokerage service institutions, with broad business space. At present, some brokers have made considerable profit contributions to their investment and trading business by virtue of their advantages in innovative licenses, capital scale and risk management.

In the future, Industrial Securities will, on the basis of adhering to the risk-neutral strategy, promote the application for innovative licenses and business development, take advantage of the opportunity that the competitive pattern of innovative business has not yet solidified to achieve catch-up, and form the company's core ability to expand and maintain institutional customers and an important profit source in the future.

The last investment focuses on information systems and compliance risk control. Industrial Securities said that the company plans to spend no less than 6% and 3% of the previous year's operating income on information systems and compliance risk control in the next three years.

Steady development of performance

In recent years, the overall performance of the securities industry has remained at a good level, and Industrial Securities has also made a breakthrough.

In 20021year, Industrial Securities achieved operating income of 65.438+08.972 billion yuan, net profit of 5.855 billion yuan and net profit of 4.743 billion yuan, up by 7.92%, 27.74% and 654.38+08.48% respectively, which was the best performance in history for two consecutive years.

Industrial Securities has made great reforms and innovations in wealth management and large-scale institutional business, which are also the two key points of the company's business development in the past two years.

In terms of wealth management business, the company's product consignment income in 20021year ranked among the top ten in the industry. The medium and long-term investment performance of Xing Zheng Global Fund, a holding subsidiary, has been at a good level in the industry, and its performance is also very stable.

According to the data, by the end of February 20021and 65438+,the total scale of global fund asset management in Xing Zheng was 673.002 billion yuan, of which the scale in Public Offering of Fund was 59065438+75 million yuan, an increase of 30% compared with the end of last year. In 20021year, the operating income was 6.568 billion yuan and the net profit was 2.235 billion yuan.

In terms of large-scale institutional business, the big investment bank and research business of Industrial Securities performed well. The commission income of research business seats ranks among the top ten in the industry; In the outsourcing business of asset custody, the number of custody ranks among the top five in the industry. In addition, Industrial Securities has also been recognized by the market in the fields of green finance, cultural construction, investor education and other social responsibilities.

Some analysts believe that with the landing of this rights issue, the capital strength of Industrial Securities will be further enhanced, which will help to effectively enhance profitability and core competitiveness.

Guotai Junan non-bank team report pointed out that in recent years, a clear and steady strategy and excellent corporate culture have promoted the company's profitability to continue to improve. Since 2020, ROE has been much higher than the industry average. Wealth management business such as asset management is the main driving force of the company's income growth, and the stable senior management team and strong execution created by excellent corporate culture further promote the company's development.

The non-bank team of Huachuang Securities reported that it is estimated that the annual net profit increment brought by this rights issue to Industrial Securities will be about 654.38+03 billion yuan. Compared with peers, brokerage stocks outperformed the brokerage index by 5.4% on average in the first half of the rights issue and 8.9% in the second two months after the implementation of the rights issue.

"The smaller the performance difference before the rights issue, the greater the performance difference after the rights issue. It is expected that if the market prosperity continues, the beta attribute will be superimposed on the rights issue, and the yield is expected to significantly exceed the brokerage index. " Huachuang Securities said.

The major shareholder promised to subscribe in full.

According to the announcement of Industrial Securities, this rights issue is intended to be distributed to all shareholders based on the total share capital of 6.697 billion shares after the closing of the Shanghai Stock Exchange on August 6, 2022, according to the ratio of 3 shares for every 65,438+00 shares. The total number of distributable shares is 2.009 billion shares, all of which are unrestricted shares.

The price of this rights issue of Industrial Securities is RMB 5.20 per share. As the closing price of Industrial Securities on the benchmark date 16 was 6.3 1 yuan, the price of rights issue was 17.59% lower than that of August 16.

The payment period of this allotment is from August 17, 2022 to August 23, 2022, and the allotment code is "760377", which is referred to as "Xingye allotment" for short. In addition, it should be noted that investors who intend to issue shares need to make corresponding allotment subscription operations in share custody brokers during the payment period.

In August last year, Fujian Provincial Department of Finance, the largest shareholder of Industrial Securities, issued a letter of commitment to subscribe for the distributable shares in this allotment plan in full in cash according to the number of shares held by date of record after the deadline of this allotment.