Ta ble:_ S4U mm2a4ry day], the company released the financial report for the first quarter of 2017, achieving revenue of 580 million yuan, 227% year-on-year; net profit of 35 million, 388%; and diluted earnings per share of 0.0375, 4.46% of the same period last year.
Main points of investment:
The substantial increase in performance is mainly affected by the consolidation of statements. Guosheng Securities and its subsidiaries have been incorporated into the scope of corporate consolidation since May 6, 2016. The substantial increase in performance is mainly due to changes in the scope of consolidated statements. Since the consolidated statements, the company's revenue in the third and fourth quarters of last year was 5.2 and 540 million respectively, and its net profit was 1.3 and 270 million respectively. Last year, the company achieved 1.64 billion in revenue and 500 million in net profit, of which Guosheng Securities achieved 1.25 billion in revenue and 800 million in total profit.
Positioning the capital market service platform, there is more room for development. In 2016, the company focused on the acquisition of 100% equity in Guosheng Securities, gradually reorganized the parent company into a holding management platform, and various businesses sank to subsidiaries, involving securities, investment and cable manufacturing. On the basis of combing and stabilizing the original business of Guosheng Securities, the company has determined the strategic orientation of Guosheng Securities as a "capital market service platform", and put forward the development goal of "omni-directional development, national layout and full-time service". Strictly control risks, legal compliance, customer-centered, scientific and technological innovation as the means, we intend to build Guosheng Securities into an important fulcrum of the company's Internet financial control platform. Guosheng Securities has more than 243 business outlets (mainly light business departments) and 2 branches, which are distributed in Beijing, Shanghai, Shenzhen, Tianjin, Hangzhou and other domestic central cities and various prefectures and cities in Jiangxi Province. it ranks first in the number of business outlets of all securities firms in the country. Relying on the national network layout and the intensive cultivation of various outlets in Jiangxi Province, the basic conditions of Guosheng Securities are better, which has laid a good foundation for building a financial control platform.
Investment advice: maintain Guosheng Holdings "overweight" rating, core logic: the company is only in the initial stage of the financial control platform, with more room for development; private placement has unique background advantages and more opportunities for extension expansion; Guosheng Securities has a strong basic strength, with a substantial replenishment of capital, the business ushered in new development opportunities. The six-month target price is 30 yuan per share.
Risk hint: the securities business performance fluctuation risk, the transformation progress is not as good as the expected risk.