Main points of the report
Event description
Falsheng issued a performance forecast for the first three quarters of 2016. During the reporting period, the company realized a net profit of 1.30-140 million yuan for shareholders of listed companies, compared with 55 million yuan in the same period last year after retrospective adjustment.
According to the calculation, the net profit attributed to the shareholders of the listed company in the third quarter is 0.91 ~ 101 million yuan, which is 22 million yuan in the same period last year. According to the latest equity, the EPS in the third quarter is 0.2400.26 yuan, the EPS in the same period last year is 0.06 yuan, and the EPS in the second quarter is 0.10 yuan.
Event comment
The factoring business steadily increased the income from asset transfer, and the profit in the third quarter increased significantly compared with the same period last year: on the basis of the traditional wire rope main business, the company gradually divested the traditional loss-making assets (including special steel products, cable sales and metal products). In order to achieve a light business pattern. At the same time, through the acquisition of Moshan factoring, the company hopes to expand its financial business with good profit prospects and lay a solid foundation for comprehensive transformation and building a high-quality financing service platform. Specifically, the significant increase in profits in the third quarter compared with the same period last year is mainly due to the following reasons: 1) at present, the net accounts receivable of domestic industrial enterprises maintain steady growth compared with the same period last year, while the traditional financing channels of manufacturing enterprises are relatively limited, under this objective background, the space of domestic commercial factoring market is gradually released due to policy support. Moshan factoring is the first asset securitization project company in China to launch asset securitization based on factoring financing claims, covering trade, energy, machinery manufacturing, construction engineering and other industries. With the rapid growth of the factoring industry, the scale of the relatively advantageous Moshan factoring business continues to expand and profits increase steadily, which has become an important support for the company's performance growth. 2) the company has completed the equity delivery of the special steel products company, the metal products company and the metal cable sales company on September 29th, 2016, which not only contributes 47 million yuan to the company's investment income, but also relieves the pressure on the company's main wire rope business. Month-on-month aspect, also benefited from the rapid growth of the scale of Mount Mount factoring business, superimposed transfer of losses on steel assets to recognize investment income, the company's third quarter profit growth rate of 142.45% to 169.21%.
Introducing strategic shareholders to help the financing business advance steadily: resources and capital are the core competitiveness of financing business. Taking factoring as an example, on the one hand, the resource advantage with a wide range of business tentacles is the guarantee of the quantity and quality of factoring business; on the other hand, capital advantage can alleviate the degree of factoring scale bound by regulatory leverage and break through the bottleneck of profit model over-reliance on financing channels. Today, Jiangyin Yaobo, a subsidiary of Zhongzhi Group, has increased its stake in Falsheng many times, and its shareholding has reached 15%, which may indicate that Zhongzhi has strong expectations for Falsheng's future business planning. After all, the presence of Zhongzhi Group, which has diversified businesses, will help to expand the operating space of the company's financing business.
The EPS is expected to be 0.46 yuan in 2016 and 0.51 yuan in 2017, maintaining the "buy" rating.