Jun 23, 2022 09:09 AM (GMT+8) · EqualOcean
CITIC Securities pointed out that the valuation of the securities sector is in the 20% quantile since 2018, and there is still room for repair. Roe (return on net assets) is the core driver of the valuation of the securities industry sector. It is estimated that the roe of the securities industry will be about 5.5%-6% in 2022, an increase of 63.2% over 2018 and a decrease of 22.7% over 2021. In the past three years, with the development of wealth management and de directional investment business, the anti volatility of roe in the securities industry has gradually improved, which is expected to promote the valuation repair of leading securities companies. Driven by the repair of sector valuation, this paper gives two logical mainlines for stock selection in the securities industry: 1) comprehensive securities companies that benefit from the supply side reform of the industry. 2) Quality company of wealth management track.

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