Main viewpoints
1. Each section works steadily, and the performance is in line with expectations.
The company achieved a net profit of 5.535 billion yuan in 2016, better than the previous forecast of 50 to 5.5 billion, down only 8.01% from the same period last year. This is mainly due to the fact that the company's consolidated statement last year included a loss of about 300 million yuan. Excluding this factor, in the relatively volatile financial market environment in 2016, it only slightly decreased by less than 4% from last year's 6.074 billion yuan. All the business lines of the company have maintained a relatively steady pace of development, and the financial company, Kunlun Bank, Kunlun financial leasing and trust plate are still the main contributors to the company's profits.
two。 Strengthen inherent advantages and seek new development on top of stability
Kunlun Bank takes the public business as the core, has strong regional advantages in business operation, and ploughs the northwest region with Xinjiang as the core. In the future, listed companies plan to move their registration to Xinjiang. It will be able to further consolidate the business in the region through government-enterprise cooperation and the combination of industry and finance. At the same time, Kunlun Bank's overseas business is progressing methodically, taking over all China's settlement business in Iran last year. In the leasing sector, Kunlun Financial Leasing has successfully entered the field of aircraft leasing business, winning bids of more than 4.3 billion yuan for projects based on energy, transportation and public utilities. "333" business pattern supported by high-end equipment manufacturing, energy conservation and environmental protection, health care and health is a further step forward. In the trust sector, Kunlun Trust's assets are still invested mainly in basic industries, real estate and equity of listed companies, and pay attention to strengthening the core position of risk control.
3. Among the flexible subsidiaries brought about by the stable performance of the group's endogenous business and market-oriented exogenous business, in addition to the large proportion of related party transactions due to the nature of financial companies and exclusive insurance, the business of other sectors has been relatively market-oriented, and the proportion of related party transactions is low. This kind of business source structure can effectively face the changes of the market environment, on the one hand, when the financial environment is booming, the performance can release flexibility, and when the market environment changes greatly, the business from within the group can also effectively smooth the performance of listed companies and bring stability.
4. Investment advice:
After the "anti-corruption storm", Petrochina Company Limited's overall image and influence are recovering from the storm. In this restructuring, the oil group will integrate its financial business, create a 100 billion-level financial control platform, advance the management system from the previous departmental system to financial control subsidiaries, and further release productivity closer to marketization. Combined with supporting financing to the main plate Kunlun Bank to increase capital 5.848 billion yuan, Kunlun trust 5.939 billion yuan, Kunlun financial lease 1.177 billion yuan, performance on the original basis will have room for further improvement, we expect this year's homing net profit of 6.3 billion yuan, EPS for 0.69 yuan / share, corresponding to PE for 23.5 times, to maintain the recommended rating.
5. Risk hint: financial supervision continues to be stricter, business coordination is less than expected