Set up a platform for small and micro enterprises and transform Internet finance.
The company is one of the five leading veteran electrical equipment in China. Under the background of sluggish growth of traditional business, we raise 3.68 billion through fixed increase, and then invest a total of 4.88 billion of our own funds to build a financial service platform for small and micro enterprises to transform Internet finance.
Smart City opens the customer base and POS terminal card traffic entrance.
Through the cooperation with the municipal government to build the smart city project, the company cuts into the daily payment and settlement scenes of small and micro merchants and citizens, and opens the customer base through the promotion of the municipal government. It is planned that within three years, through the launch of 3 million "Tianchengtong" intelligent terminals, we will obtain daily payment portals for small and micro businesses and citizens, and provide value-added financial services such as small loans and financial management on this basis. The whole project has clear logic and accurate layout, and will completely reconstruct the investment value of the company.
POS receipt + small loan + financial management: to create a small and micro financial closed-loop ecosystem.
In the future, the financial service platform for small and micro enterprises invested heavily in the construction will make profits in three modes: POS receipt, small loan (POS loan) and financial management, so as to create a closed-loop ecosystem of small and micro finance. POS receipt is the added value generated by providing intelligent POS terminals for small and micro merchants, while small loan and financial management services are value-added services derived from the daily operation of small and micro merchants obtained by POS receipts. Under the dual background of the great development of electronic payment and the increasingly difficult financing environment of small and micro enterprises, these three services all contain rich value.
Layout of banks, life insurance and financial leasing to ensure the supply of cheap funds.
With a strong strategic vision, the company chooses to lay out banks, life insurance and financial leasing while building a financial service platform for small and micro enterprises in order to obtain a long-term and stable supply of cheap funds and provide sufficient financial support for business development. At present, the banking license has been approved, life insurance and financial leasing are actively preparing for application, and the company will form a long -, medium-and short-term coverage, focused and supplementary supply of continuous cheap funds in the future.
The profitability of the project is strong, and the reasonable market value of the company in the next 12 months is 28.5 billion yuan.
The company is building a financial services platform for small and micro enterprises based on POS payments, which is profitable and is laying out cheap capital, such as city commercial banks, life insurance and financial leasing, in order to form a closed loop of business interaction. The net profit for 2016-18 is expected to be 1.7,5.7 and 1.15 billion respectively. In view of the good profit prospect of a compound net profit growth rate of 210% in the next three years, according to the 2017 50xPE valuation, the company has a reasonable total market capitalization of 28.5 billion yuan, and there is room for doubling in the next 12 months, giving a "buy" rating for the first time.
Risk hint.
1) the business progress is lower than expected; 2) the risk of POS loan business is higher than expected; 3) the fixed increase has not yet passed.