The company announced the 2016 annual report and the first quarterly report of 2017. The 16-year revenue was 190 million, down 3% from the same period last year, and the net profit was 370 million, up 66% from the same period last year. The EPS was 0.5 yuan and ROE was 10.77%. The operating income in the first quarter of 17 years was 43 million, up 22% from the same period last year, and the net profit was 17 million, down 59% from the same period last year.
Pure blood to create a bid, benefit from the rapid development of the industry. The venture capital industry has developed rapidly in the past 16 years, and the total amount and average amount of money raised have reached an all-time high. Luxin, as the purest venture capital company in the market, has a net profit of 370 million, a year-on-year increase of 66%. Among them, the investment income is 720 million, an increase of 21% over the same period last year, and the proportion of income increases to 79%. It is caused by the disposal of Luxin Investment and the rights of Peking University foreign stocks; the investment income of 17Q1 is 54 million, and the seasonal disturbance does not need to be interpreted too much. The company has rich project reserves and diversified exit channels in the future, and the income contributed by venture capital will also increase; abrasive income is 186 million, down 3% from the same period last year, but the decline is gradually narrowing and the trend is improving.
Weather-taking advantage of the east wind of the policy, the venture capital industry welcomes the golden development opportunity. 1) the State Council issued several opinions on promoting the sustained and healthy Development of VCs, and the national programmatic documents support the development of VCs, including cultivating the theme of VCs, broadening the sources of funds, strengthening policy support, improving laws and launching mechanisms. 2) the comprehensive implementation of the reform of the capital market. The government work report mentioned the new third board for the first time, and the CSRC stressed that the new third board will play a greater role, and the turnaround board is expected to achieve a breakthrough; Chairman Liu Shiyu has repeatedly stressed that the normalization of new share issuance, as the two exit channels with the largest proportion of the industry and the highest rate of return, the improvement of the new third board system and the weekly development of IPO directly catalyze the continuous improvement of the industry sector.
Location-the fundamentals of the industry broke out, and the fund-raising and investment management all set a record high. According to Qingke data, the equity investment market raised 1.37 trillion yuan in the past 16 years, up 75% from the same period last year; the investment amount was 744.9 billion, up 42% from the same period last year; and 4891 cases withdrew in the whole year, a sharp increase of 7 times over the same period last year, of which 66%, 11% and 10% were withdrawn from the new third board, IPO and equity transfer. Fundamentals repeatedly set new highs, strong policy support, the industry gradually from the bud to the mature stage, the company as the most pure venture capital company, taking into account the growth stock gene, will develop at a faster speed.
Renhe-the company has plenty of project reserves, so why not increase its performance? By the end of 16 years, the company's stock projects: 10 A-share listed companies and 25 new third-board companies; incremental projects: 7 proposed IPO projects, of which Golden Kirin was listed on the Shenzhen Stock Exchange in April this year, and 4 projects entered the listing guidance period. Rich in project reserves, the future normalization of new share issuance, the deepening of the new third board reform and other major benefits, the company's project into income this "thrilling jump" will be more smooth, why worry about the performance can not be realized.
Investment advice: strongly recommended and rated for the first time, optimistic about the future trend of the company is based on: 1) policy timing, multiple policies at the same time, vigorously support the rapid development of the venture capital industry; 2) fundamental location, fund-raising management and withdrawal have reached a record high, the industry is gradually becoming mature; 3) Renhe, the company's stock and incremental project reserves are rich, tailwind industry rapid development, will be quickly transformed into income. 4) Regional advantages, as an important listing platform of Shandong SASAC, the superimposed Shandong national reform is in full swing, and is expected to undertake resource integration projects in the province.
Using the comparable valuation method, the company is given 40 times PE, corresponding to the market capitalization of 20 billion 17, with a target price of 27 yuan, an increase of 36%.
Risk: reform does not live up to expectations