This report is read as follows:
Jiuding Investment released its 2016 semi-annual report, and its performance is in line with market expectations. The company's business development is clear, and it is a scarce target for A-share private equity investment. we are optimistic about the development prospects of the industry and the company, and maintain the "overweight" rating.
Main points of investment:
Maintain the "overweight" rating, maintain the target price of 75.46 yuan, and maintain the 2016-2018 EPS forecast of 0.79max 0.94pm 1.08. The company is a high-quality private equity company, which has shown excellent innovation and execution ability in the past development, and has formed a pattern of parallel development of PE investment, VC, venture capital and fixed income investment.
The company is a scarce target for A-share private equity investment, and we are optimistic about the development prospects of the company.
The company's performance in the first half of 2016 is in line with market expectations. In the first half of 2016, the net profit belonging to shareholders of listed companies reached 166 million yuan, an increase of 502.69% over the same period last year. This is mainly due to the fact that Kunwu Jiuding completed the industrial and commercial change registration procedures on November 30, 2015 and became a wholly-owned subsidiary of the company. The scope of the company's consolidated statement increased the operating results of Kunwu Jiuding from January to June 2016, and the company's real estate business sales increased.
The comprehensive IRR of the company's withdrawal from the project has declined and is expected to drop to 20-25% in the future, which will be a volume-based premium process in the future. As of June 30, 2016, the cumulative paid-up size of equity funds managed by the company was 28.972 billion yuan; the cumulative investment scale was 24.893 billion yuan; the cumulative comprehensive IRR of completely withdrawing projects was 29.01%; and the cumulative number of invested enterprises listed on A shares and listed on the new third board reached 95, accounting for about 1x3 of the total number of projects. Affected by relevant policies, the 12 billion increase of the company has not yet landed, and the relevant progress needs further attention. After the completion of the fixed increase, the scale of the company's managed fund will be increased rapidly.
Risk hint: the promotion of the company's future value needs to be completed with the help of capital market forces, and the risk of future regulatory approval is the core risk factor affecting the company's value.