Two securities companies that are planning to list on the country's main board posted good mid-term numbers, paving the way for their initial public offerings (IPOs).
Everbright Securities posted a net profit of 1.28 billion yuan in the first half, up 37.96 percent year-on-year, while China Merchants Securities said its net profit rose 37.83 percent year-on-year to 1.472 billion yuan.
"The two securities companies are likely to get listed this year. The strong financial reports could enhance their chances to get IPO approval," said Li Daxiao, director of research at Yingda Securities.
Founded in 1996, Everbright Securities has developed into China's 11th biggest brokerage by assets. Its registered capital was about 2.9 billion yuan.
According to the financial report, Everbright Securities realized about 2.478 billion yuan of revenue and 1.283 billion yuan of net profit in the first half. Its half-year net profit even exceeded the overall net profit of 1.219 billion yuan in 2008.
Buoyed by the rally in the stock market, the self-support business of Everbright Securities contributed most of the increased revenue. The company's investment on stocks, securities and warrants brought about 474 million yuan of revenue in the first half, while it posted negative figure in the same period of last year.
The company's revenue from traditional brokerage business also climbed 7.11 percent year-on-year to 1.717 billion yuan. Like many other brokerage firms, the company's investment banking business dropped about 80 percent year-on-year, due to the IPO market suspension.
Founded in 1991, China Merchants Securities had 3.227 billion yuan of registered capital and 1,600 staff in 27 cities across the country.
