Main points of investment:
Changjiang Investment: layout of meteorological finance and other areas, 16H1 performance increased by 200%.
In 2013, the company began to focus on the strategic function of "industrial investment and investment services", strengthening the management of existing assets and the expansion of new investment projects, and making use of the advantages of capital platform. strategic local meteorological science and technology, infrastructure, financial services, resources and other new business sectors. Its actual control is the Shanghai State-owned assets Supervision and Administration Commission, which is a typical important target for the reform of Shanghai state-owned enterprises.
The company's 16H1 performance increased by 200%, far exceeding investors' expectations, mainly due to a sharp increase in net profit from the same period last year as the participating company Changjiang United Metal Trading Center.
Online commodity spot trading industry: the market scale is growing rapidly and the industry pattern is concentrated.
In terms of market size, the spot market for online commodities has grown rapidly in recent years. The spot trading volume of online commodities increased from 8.62 trillion yuan in 2011 to 20.61 trillion yuan in 2014, with CAGR reaching 33.7 percent, according to the Yinke investment holding prospectus. From the perspective of the industry pattern, the online commodity spot trading industry is relatively concentrated, with the market share of the volume of the five major exchanges reaching 74.3% in the first five exchanges in 2014.
From the perspective of profit model, the income of the exchange mainly comes from membership fees, handling fees, extension fees and so on.
Participate in Changjiang United Metal Trading Center to create a new engine of performance growth.
The Yangtze River United Metal Trading Center was established in December 2014, with a registered capital of 50 million yuan and 40% of the shares held by Changjiang Investment. Its income mainly comes from transaction fees, extension fees and so on. Among them, the transaction fee is shared between the trading center and the member units, while the extension fee is all collected by the trading center. Since it was put into operation in the second half of 2015, the performance of the trading center has increased rapidly, with 15H2 contributing a profit of 27.241 million yuan. According to the 16H1 performance forecast, the profit contributed by 16H1 of the metal trading center is about 54 million yuan. It is expected that there is much room for growth in future income and performance. In addition, with regard to the recent questioning of crude oil trading and futures trading, Dachen Law firm, legal adviser of the Yangtze River Joint Trading Center, presented its legal advice, declaring that the establishment of the trading center was legal and effective and that crude oil trading and futures trading had not been carried out.
Cover for the first time and give a buy rating.
The company is based on integrated logistics, in recent years, the layout of meteorological, financial, infrastructure and other sectors, steady growth in performance, 16H1 performance increased by 200%. The company's Yangtze River United Metal Trading Center is in good condition and has gradually become a new growth engine for the company's performance. We estimate that the EPS in 16-18 will be 0.65 yuan, 0.90 yuan and 1.21 yuan respectively, and the current stock price will be 35 times, 25 times and 19 times respectively corresponding to PE.
Risk hint: the performance growth rate of the trading center slows down and so on.