Key points of investment:
On December 9, the subsidiary Guoyu Financial Services launched a large personal credit loan aid service, and the issuance of the first personal credit consumer loan of 100,000 yuan was completed on time. Previously, KOKUYO Financial helped telecom operators develop a 0 yuan machine purchase instalment service. Yinzhijie has embarked on an application path from underlying fintech technology to consumer scenarios. In contrast, other companies have gone from application scenarios to the development of fintech technology. Yinzhijie is expected to rely on a solid fintech technology foundation to achieve accelerated overtaking opportunities.
The development prospects of consumer finance are good, and it has clear profit models and capabilities. Recent 'naked loans'
The other side of the incident reflected huge real consumer demand, and there is an urgent need for regulated consumer finance companies to meet coverage. On Double 11 in 2016, Ant Huabei opened 100 million users. iR expects consumer credit to continue to grow rapidly by more than 20% in the next 5 years. The consumer credit balance will reach 41 trillion dollars in 2019, and the prospects for consumer finance development are good. At the same time, the profit model is clear. Higher interest spread earnings are retained as current profits, while at the same time providing buffer opportunities for future data accumulation and risk control model revisions.
Consumer finance is clearly supported by policies, and the primary market is showing an upward trend in the industry. Consumer finance responds to real consumer demand, benefits the development of the real economy, and is clearly supported by policies. Looking at the primary market, many startups have experienced a profit inflection point from burning money to getting customers to large-scale loans, and the industry is showing an upward trend.
Yinzhijie has always focused on formal and licensed financial services, and is based on big data, credit reporting, and payments to underpin the development of various financial services such as banks, insurance, and securities. The implementation of consumer finance marks the beginning of large-scale output by Yinzhijie Fintech.
The prospects for maintaining the buying rating, upgrading the company's financial information service products, and building a comprehensive financial platform are promising. Net profit for 2016-2018 is expected to be 127 million, 288 million, 393 million yuan, and EPS is 0.19, 0.42, and 0.58 yuan.
Risk warning: Relevant business supervision policies and license acquisition conditions have changed, there is a risk that the company's innovative business progress will not meet expectations, and market competition will increase the risk.