Main viewpoints
1. Take advantage of the east wind of policy and send it to others later.
Prior to this, there is already a local asset management company in Anhui Province: Anhui Guohou Financial Asset Management Co., Ltd. In October 2016, the CBRC issued a letter on appropriate Adjustment of relevant policies of Local Asset Management companies (Banking Supervisory Office memo (2016) No. 1738), which adjusted the relevant policies of provincial AMC (asset management companies) and relaxed local AMC controls: one is to allow provinces to set up an AMC;, and the other is to allow the transfer of non-performing assets acquired by AMC. The company has the opportunity to participate in the establishment of the second local asset management company in Anhui Province, with a registered capital of 4 billion yuan, which is higher than the 1.5 billion yuan of Guohou assets. The largest shareholder of Guohou assets is Hefei Boya Trading Co., Ltd., which is a private background, while the controlling shareholder of Zhongan Financial Asset Management Company (tentatively) is Anhui Investment Group, which is a state-controlled enterprise. it is expected to enjoy more resource allocation and policy tilt.
two。 There is a huge space for the disposal of non-performing assets in Anhui Province.
Since 2008, under the influence of the global financial crisis and stagnant development, the operation of enterprises has become more difficult. The scale of non-performing assets in Anhui Province has increased year by year. Taking the balance of non-performing loans of commercial banks as an example, the balance of non-performing loans reached 36.2 billion yuan in 2015, which has reached the level of 2008. And in recent years, the growth rate of non-performing loans has accelerated year by year, local financial risks have a gradual expansion trend, and with the strong demand of regulators to control risks and seek stability. Non-performing assets disposal business will usher in a huge space for development.
3. Business closed loop is formed to improve the overall valuation
The company already has five types of financial licenses: leasing, small loan, guarantee, pawn and P2P, which is unique among A-share listed companies. The above five types of financial business continue to bear the pressure of economic downturn. When there are problems in customer solvency, the possibility of conversion into non-performing assets increases, and the company's equity participation can not only share the cake of the disposal of non-performing assets in Anhui Province, but also improve the company's business chain, form a closed loop and effectively reduce risk. Although the AMC is in its infancy, it will take time to complete the team building and start the business, but the scarce license plates of two companies in one province will effectively improve the overall valuation of the company. Combined with the current valuation level of the company and the space brought by the continued expansion of licensing and improved layout by the acquisition of third-party payment Haike Rongtong, we continue to recommend ratings to the company.
4. Risk hint: the AMC exhibition industry is slow, and the process of mergers and acquisitions will not be as expected.