Main viewpoints
1. Performance commitments fail to be met and need to be made up in cash
The net profit of the company's assets in 2016 is 210.1995 million yuan, which is 12.42% different from the performance commitment. According to the performance commitment and compensation Agreement previously signed, we estimate that Sony Investment needs to compensate listed companies with cash of 39.159 million yuan.... two。 The main reasons for the failure to meet performance commitments
First, macroeconomic uncertainty has increased, making it more difficult for financial companies to operate. With the increasing uncertainty of the macroeconomic environment in 2016, the real economy has not yet seen a strong recovery, and the financial services companies are engaged in, including micro-loans and financial leasing, are highly related to the prosperity of the real economy. Second, the financial expenses for the whole year are relatively high, and the financial pressure decreases in 2017. Previously, the funds for the restructuring and purchase of Sony investment assets by listed companies mainly came from three parts: first, the size of its own capital was about 800 million yuan, and the average finance of this fund for the whole of last year was about 30 million. Second, Anhui Conch Cement's financial support is about 200 million, and the cost of this capital is slightly lower, with an annual average cost of 12 million yuan. Third, the M & A loan from Pudong Development Bank is estimated to be about 700 million yuan and the loan interest rate is 8%, then the annual cost of capital is 56 million yuan. The total amount of the three parts is about 98 million yuan, and some of the funds for this asset purchase will be repaid one after another, and the financial pressure on the company will decrease in 2017. Third, the growth rate of micro-loans has slowed down, the prosperity of the industry has declined, and financial financing such as pawn has become more difficult. By the end of 2016, there were 8673 microfinance companies nationwide, a decrease of 237 compared with the same period last year, with a loan balance of 927.3 billion yuan and a decrease of 13.1 billion yuan in RMB loans in 2016. The growth rate of small loan companies has slowed significantly, and the loan balance has not increased but decreased. The industry is greatly affected by the changes in the real economy, so it is more difficult to achieve the high growth rate promised by the performance. As the policy continues to restrict the pawnbroking industry from financing from banks and other financial institutions, the financing of similar financial industries has become more difficult.
3. Investment suggestion
As the CSRC has accepted the restructuring plan for the company to issue shares to buy shares in Haike Finance, it is not affected by the new rules on refinancing of listed companies. The company launched a high delivery program, to a certain extent, to make up for the failure of performance commitments, while helping to maintain short-term stock price stability. Although the performance is lower than expected, and there will be some operational challenges, but after the release of the annual report, the market has digested this, the current valuation of the company is in a low range, investors are advised to continue to pay attention.
4. Risk hint: the process of corporate restructuring is not as expected, and the macroeconomic recovery is slow.