This report is read as follows:

The industrial territory of Internet financial companies with low valuation has gradually surfaced.

Main points of investment:

For the first time, the overweight rating is given, with a target price of 30 yuan. Benefiting from the boost of new business, the company's EPS in 2015-2017 is expected to be 0.58,0.88,1.24 yuan, respectively. Industry comparable companies in 2015 PE average 60 times, considering the outbreak of Internet financial performance there is still some uncertainty, give a certain valuation discount, 15-year PE52 times, corresponding to the target price of 30 yuan. Diversified business layout, actively seek the transformation of Internet finance. The company takes electronic information (including Internet of things business and optoelectronic business) and supply chain business as the two main bodies. Under the background of the transformation promoted by the national reform, the company is actively marching into new fields such as financial leasing (Sanan Xinda) and Internet finance (Shenzhen Maike).

The vanguard of Xiamen national reform stimulates the vitality of transformation and reform. The actual control of the company is Xiamen ITC Holdings. The reform of state-owned enterprises in the eastern developed provinces has taken the lead in the country. On the one hand, the national reform is expected to stimulate the vitality of enterprises and promote transformation. On the other hand, Xiamen ITC is rich in assets, and the injection of financial business is also worth looking forward to.

Shenzhen Maike business advance more than expected, the layout of the Internet financial industry is worth looking forward to. The company invested 200 million yuan to participate in Shenzhen Maike Commodity Financial Services Co., Ltd. Shenzhen Maike is the first domestic commodity financial services company, and bill intermediary is the focus of the business. The major shareholder Maike Group is a large comprehensive enterprise group engaged in commodity trade. The positioning of the financial services company makes the company have an efficient process advantage over other intermediaries. According to our industry chain research, Shenzhen Maike business progress exceeds market expectations. At the same time, the continuous layout of the company's follow-up Internet finance is also worth looking forward to.

Risk hint: the reform of state-owned enterprises is not as expected, and the progress of Internet financial business is lower than expected.