Huachuang Securities: Market Value and Its Business

1. Overview of Huachuang Securities

Huachuang Securities is a securities company approved and recognized by the China Securities Regulatory Commission. It provides services such as A-share account opening and stock trading, and is dedicated to offering comprehensive internet financial services in investment, wealth management, financing, and consumer payment to its clients.

2. Huachuang Securities as the Largest Shareholder

Huachuang Securities is the largest shareholder of Huachuang, with a total net asset value of around 16 billion yuan by the end of 2022. Even if the average valuation of securities companies is 1.2 times the net asset value, its valuation would still amount to 19.2 billion yuan. Additionally, Huachuang holds shares in 500 listed companies in China's digital economy, indicating its significant presence in the market.

3. Acquisition of Sitique by Huachuang Yunxin

Huachuang Yunxin, a subsidiary of Huachuang Securities, has acquired Sitique at a price of approximately 21.12 yuan per share, which is 28% higher than Sitique's latest closing price of 16.5 yuan per share. Moreover, the acquisition price is significantly higher than the subscription price in December 2022. This acquisition highlights Huachuang Securities' strategic moves to expand its portfolio and enhance its market presence.

4. Major Shareholders and Market Value

According to the latest update, the major shareholder of Huachuang Securities, with a stake of 3.66 million shares, holds a market value of 1.75 billion yuan, accounting for 5.74% of the total shares. The top ten shareholders of the company, as of September 30, 2023, are mainly news commentaries and analysis funds, contributing to the stability and growth of the company's market value.

5. Financial Performance and Comparison with Peers

In recent years, Huachuang Securities has been experiencing poor performance compared to other securities companies with similar market values. ROE and ROA data of 20 securities companies with market values neighboring Huachuang Securities indicate that it ranks 17th in terms of ROE. This suggests the need for Huachuang Securities to enhance its profitability and operational efficiency to improve its market position.

6. Huachuang Securities in the Fund Industry

Huachuang Securities Limited Liability Company, as a fund company, manages two funds with a total of 74 million shares. The number of shares has decreased by 26.79% compared to the previous period. The company's fund managers have demonstrated their expertise and the company's ability to manage assets, leading to a net asset value of 103 million yuan as of the latest update.

7. Investment Opportunity: Huachuang Securities Fund

If you are considering investing in Huachuang Securities and enjoying the benefits for one year, you can choose the Huachuang Securities Innovation One-Year Holding Period A (970103) on the Fund Buy-Sell website. The platform provides comprehensive information such as fund profiles, fees, dividends, net asset value trends, announcements, and asset allocation, making it easier for investors to make informed investment decisions.

Overall, Huachuang Securities is a well-established securities company in China, providing various financial services to its clients. It is the largest shareholder of Huachuang and actively participates in the digital economy. However, its financial performance needs improvement to compete effectively with its peers. Investors interested in Huachuang Securities can explore investment opportunities through its fund products.