SDIC Capital Co.,Ltd. has reported steady performance growth since 2025, yet its price-to-book (PB) ratio remains below 1, standing at less than 0.8. Amid a wave of mergers reshaping the securities industry's competitive landscape, market attention on the company has intensified. At the performance briefing on May 14, Chairman Cui Hongqin directly addressed the valuation concern, stating that the company has completed two rounds of share buybacks and cancellations totaling over 4 billion yuan. Moving forward, the company will leverage multiple approaches including dividends, investor relations, and organic growth to drive its market value towards a reasonable reflection of its intrinsic worth, while cautiously evaluating potential industry merger opportunities.
SDIC Capital has executed two rounds of share repurchases. On the afternoon of May 14, SDIC Capital held its 2025 Annual and 2026 First Quarter Performance Briefing. In 2025, the company achieved operating revenue of 13.544 billion yuan, a year-on-year increase of 3.79%. Net profit attributable to shareholders of the parent company was 3.279 billion yuan, up 21.71% year-on-year. For the first quarter of 2026, operating revenue reached 3.938 billion yuan, a 31.81% increase year-on-year, with net profit attributable to shareholders of the parent company at 766 million yuan, rising 12.63% year-on-year. Adjusted net profit was 874 million yuan, marking a 29.85% increase.
Regarding the company's currently low PB valuation, which is in a "below-net-asset" state with a ratio under 0.8, Chairman Cui Hongqin stated: "The company places high importance on market value management. To bolster investor confidence, we have consecutively carried out two phases of share repurchases: the first round (2023-2024) involved a cumulative repurchase amount exceeding 2 billion yuan, buying back and canceling 31.339 million shares; the second round (2025-2026) has seen a cumulative repurchase amount also surpassing 2 billion yuan."
Cui Hongqin further elaborated that SDIC Capital is currently focused on building a first-class domestic industrial finance management platform. It aims to promote the differentiated development of its controlled investment enterprises with tailored strategies, support SDIC Securities in building a distinctive first-class "industrial chain investment bank" and "industrial fund investment bank," and assist SDIC Taikang Trust in enhancing its "family and charitable trust" brand. "In the future, SDIC Capital will actively research relevant market value management measures, continuously work on institutional development, share buybacks, cash dividends, and investor relations management to improve operational management levels and core competitiveness, striving to drive the company's market value towards a reasonable reflection of its intrinsic value."
Leveraging the industrial resource advantages of its parent group, SDIC Group, the company is building an "industrial chain investment bank" and an "industrial fund investment bank." SDIC Securities, a subsidiary of SDIC Capital, is a relatively large-scale securities firm. In recent years, regulatory authorities have encouraged securities firms to accelerate mergers and integration to enhance scale advantages and reduce internal competition. State-owned securities firms are leading this merger trend, with notable cases like the merger and reorganization of Guotai Junan and Haitong Securities, and China International Capital Corporation's share swap absorption of Dongxing Securities and Cinda Securities attracting significant attention and substantially altering the competitive market landscape.
Regarding whether SDIC Securities is considering mergers to grow stronger, Cui Hongqin commented: The Matthew effect in the securities industry will become more pronounced in the future. Accelerated supply-side reform in the sector will better facilitate its intermediary function in financing new quality productive forces and providing allocation services for patient capital. Consequently, cases of mergers and acquisitions within the industry have begun to increase. "We are closely observing the scale effects and business complementarity advantages brought by cases within the industry, such as the integration of Guotai Junan and Haitong Securities, and CICC's consolidation. We will cautiously assess market opportunities in light of our own characteristics. While actively monitoring and seeking external merger opportunities, the company will drive SDIC Securities to focus on becoming a first-class industrial investment bank with core competitiveness and distinctive features. By leveraging the industrial resource endowment of SDIC Group, we aim to build an 'industrial chain investment bank' and an 'industrial fund investment bank,' accelerate business transformation, and continuously enhance comprehensive financial service capabilities and brand influence."
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