Event: on February 28, 2017, Pacific Securities released its annual report for 2016. the company achieved operating income of 1.804 billion yuan in 2016, down 34% from the same period last year, and its mother's net profit was 668 million yuan, down 41% from the same period last year. At the end of 2016, the net capital was 11.416 billion yuan and the net asset was 11.761 billion yuan. The profit distribution plan for 2016 will distribute 0.30 yuan (including tax) for every 10 shares.
Competitive advantage:
The company distributes Yunnan, radiates the whole country, and distributes Southeast Asia.
The company's brokerage business ranks first in Yunnan Province, with 31 business departments in the province, and is preparing to set up 2 business departments.
The company has 15 branches and 37 business departments outside the province, and there are 4 branches and 18 business departments under construction.
The company has set up Laos-China Securities Co., Ltd., with a shareholding ratio of 39%. It is a comprehensive and fully qualified securities firm approved by the Lao Securities Regulatory Commission, which can carry out all securities business in accordance with the provisions of the Lao Securities Law. It mainly includes: financial advisers, securities brokers and trading agents, securities underwriting. It is proposed to acquire a securities company in Thailand in 2017.
Rights issue, refinancing, convertible bonds, multi-program expansion of capital.
The company raised 4.259 billion yuan in a rights issue in 2016 to further enhance its capital strength. It is proposed to implement refinancing and issue convertible bonds in 2017.
The employee stock ownership plan is on its way.
The company issued the employee stock ownership plan (draft) on February 17, and the implementation of the employee stock ownership plan is conducive to the establishment and improvement of the benefit-sharing mechanism between the company and employees.
Investment suggestion: increase holdings, 6-month target price 6.55 yuan. We expect the company's EPS from 2017 to 2019 to be 0.12,0.15 and 0.17 yuan.
Risk hint: the secondary market as a whole fell sharply.
