This report is read as follows:
The termination of fixed growth will not affect the firm and continuous promotion of the company's established strategy, the integration of payments will bring about historic changes, and the future growth of Kayu payment is expected to exceed market expectations. Maintain the overweight rating with a target price of 27 yuan.
Main points of investment:
Maintain the "overweight" rating and maintain the target price of 27 yuan. From 2016 to 2018, the EPS was 0.30, 0.53 and 0.73 yuan. Based on PE and PEG valuation methods, the company is given a target price of 27 yuan, corresponding to 51 times PE in 2017, maintaining an "overweight" rating.
Confidence is firm and the established strategy continues to move forward. After the termination of fixed growth, the market has doubts about the future development of the company in the direction of payment, factoring and mutual funding. we believe that the firm implementation of the company's strategy does not rely entirely on fixed growth, and the overall strategy is still advancing steadily. At present, the company plans to use its own funds to acquire 40% of the equity of Jiangsu Runxing Financial Leasing Co., Ltd. It is enough to show the strong execution and firm confidence of the company.
Converged payment has brought about historic changes, and the future growth of Kaiyou payment is expected to exceed market expectations.
The market thinks that the growth of the bank card receipt market is insufficient, we believe that the intelligent POS machine is leading a new round of offline payment revolution, and the card friend payment order collection business has a strong growth. China's tripartite payment market is developing in the direction of integrated payment with intelligent POS as the acceptance carrier.
In 2015, the penetration rate of intelligent POS machines in China was only 1.3%, and there is huge room for development in the future. Card payment is based on integrated payment, and its future growth is expected to exceed market expectations.
The China Plant Department has entered the game, and the big chess game of the Smart City is on the brink of trigger. China Plant is 18.56 yuan per share, with a premium of 3.2% to show confidence. Zhongzhi Group will provide support to Dahua Intelligence from various aspects such as project funds and business development channels, and the cooperation between the two sides will form a comprehensive resource synergy effect and provide strong resource support for the company's subsequent development in related fields. Follow-up is expected to carry out comprehensive cooperation in smart cities and financial services, a big chess game is imminent.
Risk hint: offline order market expansion is not as expected; OTT cooperation progress is not as expected
