Page 16 - 凱基證券 年報

致股東報告書 Letter to Shareholders
Last year, with the global economic recession slowly receding
and the implementation of various government rescue
packages around the world, the global economy managed to
grow at a stable pace. In the first half of 2010, growth was
spurred on by quantitative easing and massive cash injection
in the US. By the second half of 2010, these measures, along
with efforts to stabilize and stimulate the economy, were being
drawn down. As a result, economic growth slowed. In 2010,
although global stock markets were showing mixed results,
the TAIEX, positively affected by the vast flow of capital to
emerging markets and the opening up of relations with China,
surged more than 9% from the low of 8,188 points at the
end of 2009 to finish 2010 at 8,972 points. Margin loans
skyrocketed to over NT$300bn last year.
Despite capricious markets, KGI Securities posted positive
earnings growth in 2010, thanks to its commitment to
professionalism, efficiency and service and to its core
advantages of innovation, teamwork and regional integration.
After acquiring Taishin Securities at the end of 2009, KGI
Securities expanded its client base and further stabilized its
revenue stream and, as a result of the fresh influx of talent and
post-merger synergies, had many of its businesses forged
into the lead in Taiwan securities market, as well as further
diversified its already comprehensive product offerings. KGI
Securities outperformed most of its major peers in 2010 with a
net profit of NT$3.12bn, representing EPS of NT$1.00, and a
6.79% ROE.
Business highlights of 2010
As a result of the merger with Taishin Securities, KGI
Securities expanded its brokerage market share in Taiwan
from 3.745% before the 2009 merger to over 8% in 2010,
ranking second in the domestic market. The Company
also ranked second in stock borrowing and lending (SBL)
on the back of flexible stock sources allocation coupled
with efficient quota control. In addition, it has taken the
top spot in the overseas sub-brokerage business for
several years running.
In a survey of Asia's local currency bond indices by The
Asset magazine, KGI Securities won top honors in the
category of “Corporate Bonds Market Share ” and
was runner up in the category of “ Government Bonds
Market Share” . KGI Securities was also awarded
“ Best Domestic Bond House” in 2010 by The Asset
Triple A Country Awards, which attests to its strong
reputation for professionalism among international and
domestic institutional investors. In addition, KGI Securities
(Thailand) ranked No.1 in both the REPO business and
the bond outright trading business in Thailand in 2010,
and was voted “ Best Bond Securities Firm Award for the
Year 2010” by Thai Bond Market Association. These
achievements testify to the high regard in which KGI's
well-established regional platform is held by the market.
In the investment banking business, the enormous
advantages afforded by KGI Securities' comprehensive
regional integration in Greater China, Thailand and
Singapore saw this division nearly double its revenue
last year as compared to 2009. KGI Securities led eight
IPOs (including TDR issuances) in 2010 with a 21.15%
market share which was the highest in the market and
was honorably awarded the first prize by the GreiTai
Securities Market for its number one deal counts of
recommending IPO listing business. In addition, KGI
Securities completed the TDR issuance of China's largest
integrated IT service provider, Digital China Holdings Ltd.,
and was awarded a mandate from Elpida Memory Inc. for
its TDR issuance which was subsequently completed in
February 2011. In regards to financial advisory business,
KGI Securities advised ASE Group on its acquisition of
Universal Scientific Industrial Co., Ltd. It also advised BOE
Technology Group Co., Ltd., a remarkable Chinese display
panel maker, on the acquisition of the principal assets and
businesses of Jean Co., Ltd. These achievements testify
to KGI Securities' status as a highly professional operator
with world-class capability in structuring and executing
complex, cross-border, first-of-a-kind transactions.
In the derivatives business, KGI Securities issued 912
warrants totaling NT$14.4bn in 2010, third highest
among domestic peers. KGI Securities also maintained
its leadership in IRS business and structured securities
trading volume.
With the global economy showing signs of moderate recovery,
the International Monetary Fund forecasts a global economic
growth of 4.4% in its 2011 World Economic Outlook report,
and also estimates an averaged 4.9% growth rate for the "four
Asian tigers". However, the sovereign debt crisis in Europe,
inflation pressure in Asia and the deadly earthquake and
tsunamis in northeastern Japan could affect the economic
outlook during 2011. This year, KGI Securities will continue to
improve its service offerings at home and abroad and secure
14 致股東報告書 Letter to Shareholders