Steady growth in performance, in line with expectations
The company's 2016 net profit was 40.85 million yuan, an increase of 8.05 percent over the same period last year, in line with expectations, and its operating income was 310 million yuan, an increase of 46.06 percent over the same period last year. The company's high revenue growth is mainly due to the good operation of the traditional main business and the income recognition of the investment business. The company's net assets in 2016 were 715 million yuan, an increase of 4.35% over the same period last year. The company plans to pay a cash dividend of 0.6 yuan (before tax) for every 10 shares, totaling 200 million yuan.
The physical industry is innovating continuously, and the operation is steady in many ways.
In recent years, the growing demand for new energy vehicles has stimulated the supply of lithium batteries, prompting Huaguan Science and Technology to increase market development and scientific research and innovation. 15 new patents were added this year, laying a good foundation for follow-up production and operation. the application for listing of the new third board was accepted during the year, and revenue reached 108 million yuan in 2016, an increase of 28.13% over the same period last year. Huaguan Capacitor added four new patents, achieved remarkable results in cost control, and steadily improved its operating performance, with revenue of 77.85 million yuan in 2016, an increase of 35.6% over the same period last year. Lihe Environmental Protection has continuously maintained the safe and stable operation of the plant, and now has a sewage treatment capacity of 178,000 tons per day. Shandong Dongying Water purification Project and Southern District Phase II Water purification Project have achieved revenue of 59.74 million yuan in 2016, an increase of 23.73% over the same period last year.
The development of investment business is accelerated and shareholders' resources are strongly supported.
At present, the company has initially formed a core platform and business system such as investment and asset management, and has set up a professional investment team with more than 70 experienced people, focusing on strategic emerging industries such as health care, cultural media, TMT, high-end intelligent manufacturing and environmental protection and new energy. In 2016, the company successively set up 14 investment management subsidiaries, with a total outbound investment of 830 million yuan, an increase of 61.46% over the same period last year.
Through direct investment, the company invests in high-quality projects such as dynamic Tianhui, Youbixuan, most Amoy Technology, Qi Le Kang, Bean Pod Technology, etc., and invests in Bona Pictures through special funds and participates in Sichuan Shuangma M & A projects. In 2016, the company invested 57.79 million yuan in revenue and contributed 27.77 million yuan in operating profit.
Seize the opportunity of Guangdong-Hong Kong-Macau Greater Bay Area and have broad prospects for development.
The controlling shareholder of the company is Zhuhai Financial Control, and the actual control is Zhuhai SASAC. As an important collection of financial assets in Zhuhai, Zhuhai Financial Control is the core platform for operating state-owned financial assets and industrial investment, and undertakes the important task of resource integration and local economic development. Zhuhai, which is connected with Hong Kong and Macao, is at the forefront of economic development. There are many small and medium-sized scientific and technological enterprises, and economic development depends on more financial support.
Recently, the government announced that it is studying and formulating a "Guangdong-Hong Kong-Macau Greater Bay Area" development plan. as the only listing platform under Zhuhai Financial Holdings, the company will rely on the resource advantages of the controlling shareholders, develop the coordination of resources within the group, and at the same time make use of the regional advantages of the Pearl River Delta. There are broad prospects for development in the future.
It is proposed to change the name and increase the venture capital to maintain the "overweight" rating.
The company plans to change its name to "Huajin Capital", which has been approved by the board of directors and shareholders' meeting, and has yet to be approved by the industrial and commercial department and the exchange. In the future, it will continue to speed up the cultivation of emerging investment business and achieve strategic transformation. Zhuhai Financial Holdings, the company's controlling shareholder, has financial licenses such as banking, securities, insurance, futures and financial leasing, which provides strong support for the company's equity investment business in fund-raising, project investment, post-investment management, value-added services and other business links. It is expected that the EPS in 2017-19 will be 0.13,0.16 and 0.17 yuan respectively, corresponding to PE141x, 121x and 107x, using the distribution estimation method, the target price range is 210.23 yuan.
Risk hint: market volatility risk, business development is not as expected.