Summary of the report

Innovation, performance ushered in an inflection point

The company's core profit assets are sound, biopharmaceuticals are growing steadily, maintaining a leading position in the industry; pharmaceutical chain scale and efficiency are growing synchronously, and actively innovating terminal business models to promote electronic pharmaceutical commerce. At the same time, the company sized up the situation, strengthened risk prevention, and significantly reduced the losses of domestic and foreign trade and energy sectors compared with the same period last year, which ushered in a new inflection point for the company's performance.

Diversified development of securities insurance to promote the integration of industry and finance

Insurance investment was added to the company's financial services sector in 2016. China Insurance is a comprehensive insurance financial group integrating property insurance, life insurance and asset management. At the same time, GF Securities Co., LTD. 's position in the industry is also far ahead, profitability is extraordinary. Holding the two high-quality assets of securities and insurance will help to maximize the coordination of industry and finance and increase the driving force for the development of the company.

The major shareholders will increase their chips again, and the future development is worth looking forward to.

The company plans to introduce Jinhui capital management, enhance equity diversification, introduce new elements for the company and boost the overall strength under the premise of controlling Rencheng large group. At the same time, the active participation of major shareholders in customization also demonstrates their confidence in the overall performance improvement after the adjustment of the company's business structure and their complacency in future development.

Valuation

This paper chooses the partial valuation method. The company's pharmaceutical sector is highly professional and has a good ability of sustainable development, and we give it a price-to-earnings ratio of 25 times. GF Securities Co., LTD. 's market capitalization according to the proportion of shares is about 19.35 billion yuan. China Insurance's corresponding shareholding ratio is valued at about 8.2 billion. The reasonable share price of the company is 22.79 yuan, which is deeply covered for the first time and given a buy rating.