The total income of the company is 4.495 billion yuan, YoY-41.65%; total import and export volume is 478 million US dollars, YoY-41.44%, of which exports are 426 million US dollars, YoY-44.30%, imports 52 million US dollars, YoY + 1.13%; net profit from home is 661 million yuan, YoY + 12.30%. A cash dividend of 1.30 yuan (including tax) is distributed for every 10 shares. The decline in revenue is mainly due to the fact that Shidanu Group is no longer included in the scope of the merger and the company has taken the initiative to reduce its domestic trade business. Shidanu promotes the globalization strategy. In order to meet the conditions for overseas listing, Mr. Wu Zhongbao, who holds a 20% stake in Shidanu Group, has lifted the agreement of concerted action with the company, and the company will no longer merge Shidanu. The overall business performance of the company is stable and improving.
Injection of financial assets, the development of the two wings of "financial control + trade"
The acquired assets are 55 per cent of Zhejiang Gold Trust, 100 per cent of Dadi Futures and 50 per cent of China and South Korea Life, and raised 1.2 billion yuan. At present, it has been formally approved by the CSRC, the reorganization project has entered the final stage, and the registration procedures for industrial and commercial equity change of Zhejiang Gold Trust and Dadi Futures have been completed. China and South Korea Life's equity change application is being examined and approved by the China Insurance Regulatory Commission. In the future, the company will adhere to the "financial control + trade" two-wing development strategy, trade circulation is the traditional main business, and financial investment is an important direction of strategic layout. After the completion of the transaction, it will collect a number of licenses, such as trust, futures, insurance, financial leasing and industrial funds, to become the first comprehensive financial holding listed company in Zhejiang.
Enjoy geographical advantages, take advantage of the national reform policy, benefit from the development of quantum communications industry, Zhejiang regional economy is developed, "Belt and Road Initiative" construction, the Yangtze River economic belt is conducive to the development of the company. The restructuring plan is a major strategic plan for the provincial party committee and provincial government to promote the overall listing of state-owned enterprises and the reform of mixed ownership, and to build the first financial control platform in Zhejiang Province, and will receive strong policy support. The majority shareholder ITC Group is rich in financial assets, including non-performing assets management, banking, guarantee, factoring and so on. Relying on the resources of shareholders, the company is expected to carry out a variety of financial business cooperation, and explore the trade and financial industry-finance combination model, with broad space for cooperation. Zhaofu Fund of Zhejiang Oriental subsidiary invests Zhejiang Shenzhou Quantum Network Technology Co., Ltd and HKUST Guodun Quantum Technology Co., Ltd., which directly benefits from the development of quantum communication industry and is expected to become a capitalization platform of quantum communication in the future.
Maintain the buy rating
Original business: continue to promote the upgrading of foreign trade business business model, integrate traditional business and cross-border e-commerce business, business revenue is expected to grow steadily at 10%, 15%, 15% growth rate in the next three years, contributing 717 million, 797 million, 906 million of return profits. Given 22-25 times PE, the corresponding valuation in 2017 is about 15.8 billion-17.9 billion. Injection of underlying assets: with reference to performance commitments and considering the thickening effect of capital increase on performance, we will contribute 160 million, 206 million and 254 million of the parent profit in the next three years, 25-30 times PE, and a corresponding valuation of 4 billion-6.2 billion in 2017. Comprehensive consideration: the total market capitalization in 2017 is estimated to be about 198-24.1 billion yuan, with 672 million shares of equity after the completion of the restructuring, with a target price of 30-35 yuan, maintaining the buy rating.
Risk hint: the economic downturn is higher than expected, and the risk of fluctuation in the capital market.
