Looking at the profit contribution or scale of the venture capital sector from the two dimensions of scale, the value of the company's venture capital companies is clearly undervalued. We divided the company's business into four parts: venture capital, trust, banking, insurance and others (real estate+highway). Referring to the valuations given to PE60X, PB3X, PB1.2X, PB1X, and PE10X by similar listed companies, the overall reasonable market value of the company should be between 169-18.5 billion. The valuation of EPS corresponding to 15 years is 16.2-17.8 times, and there is still room for more than 45% of the stock price.

Profit forecasts and investment recommendations. The company benefited from a sharp drop in financing costs and an increase in investment income from venture capital and trust companies. The company's net profit for 2014-2016 is estimated to be 8.9, 10.4, and 1.16 billion yuan respectively, equivalent to EPS of 0.4, 0.46 and 0.51 yuan respectively. We divided the company's business into the four parts of venture capital, trust, banking, insurance and other (real estate+highway). Referring to the valuations of similar listed companies, the overall reasonable market value of the company should be between 169-18.5 billion yuan, corresponding to the valuation of PE60X, PB1.2X, PB1X10X, PB1X10X, and PE10X The valuation of 15-year EPS should be at least 16.2-17.8 times, maintaining the “buy” rating, with the first target price of 7.6 yuan.

Risk warning. China's economic growth rate is lower than expected