Southwest Securities 1.18 billion acquisition of 20% equity of Yinhua Fund will become the controlling shareholder (VC320)

After not long ago, it planned to absorb Guodu Securities and complete the first interbank merger of listed securities firms, Southwest Securities took another heavy blow. The company announced on September 16 that it had acquired a 20% stake in Yinhua Fund Management Co., Ltd. held by Shanxi Haixin Industrial Co., Ltd. for 1.18 billion yuan. After the acquisition is completed, Southwest Securities will hold a 49% stake in Yinhua Fund Management Company and become the controlling shareholder of Yinhua Fund.

Relevant persons of the company said that after increasing the equity of Yinhua Fund, Southwest Securities will eliminate the short board of the fund in the full license business, and the fund business will become the company's new profit growth point in the future. On the 16th, the company announced at the same time that it will participate in the transfer of shares in banks. The business and assets of Southwest Securities will cover securities, funds and banks. The model of a fully licensed securities holding group has already emerged.

Information shows that Yinhua Fund was established in 2001 as a national fund company and a fully-licensed fund company established earlier in China. It has become one of the few companies with the qualifications of enterprise annuity asset management business, overseas securities investment management business, and specific client assets. One of the fund management companies that manages the business qualifications and the qualifications of the National Social Security Fund Council's domestic entrusted investment manager. Since 2008, the scale of the fund has been among the top ten in the country. At the end of 2010, the net asset value of the fund reached 72.2 billion yuan, and its market share exceeded 3%. In 2010, it achieved revenue of 1.076 billion yuan and net profit of 341 million yuan.

Southwest Securities Chairman Weng Zhenjie said that holding Yinhua Fund has important strategic significance to Southwest Securities. At present, 12 of the 15 listed brokerages in the country hold equity in fund companies, of which 9 listed brokerages have holding fund companies. Therefore, for Southwest Securities, which is building a billion-level securities company, exploring securities holding groups and striving for a leading position in the country In terms of, a holding fund management company is indispensable.

Although Southwest Securities had basically possessed a full license for brokers, the fund business has always been a short board. Fund companies have huge room for future business development. The trend of domestic professional financial management is becoming more and more obvious, and there is also an international trend. This is a huge opportunity for the top ranked full-license fund companies. The fund business has become a new profit for Southwest Securities. growth point. In addition, the current profit sources of securities companies are mainly composed of brokerage business, asset management business, investment banking business, etc., a considerable part of the income is relatively affected by market fluctuations, while the income of fund management companies mainly comes from management fee income, and performance is affected by market fluctuations The impact is much smaller than that of securities companies. After the completion of the acquisition, it will not only help Southwest Securities to smooth its performance and mitigate the impact of large fluctuations in the secondary market on stock prices, but also effectively play a synergistic effect on customer resources, market resources and channel resources. Brokerage business development and investment bank issuance business will complement each other well.

From a financial point of view, Yinhua Fund's net profit in 2010 was 340 million yuan, and Southwest Securities' consolidated net profit calculated based on a 49% holding ratio was 167 million yuan, calculated at a 30-fold price-earnings ratio. With a market value of around 5 billion yuan, this equity acquisition will help to enhance the value of Southwest Securities.

With the strong support of the Chongqing municipal government, Southwest Securities has developed rapidly in recent years. After the completion of the merger of Guodu Securities, Southwest Securities will complete the last piece of the "Full License Financial Supermarket Strategy"-IB business licenses and futures companies, plus Last time, the holding of Yinhua Fund Company will expand its business scope in a short period of time.

The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting.