Event description
Harbin Investment Co., Ltd. released its semi-annual report for 2016. In the first half of 2016, the company achieved operating income of 615 million yuan, down 6.54% from the same period last year; net profit of 87 million yuan, down 8.80% from the same period last year; and net assets of 3.612 billion yuan at the end of the period, 6.58% lower than at the end of 2015.
Event comment
The company's earnings in the first half of 2016 have exceeded the annual plan target. On the one hand, the company received a dividend of 16.1729 million yuan from China Minsheng Banking Corp, which thickened the income level; on the other hand, the industry periodically made a better profit during the heating period, and the equipment maintenance and technical transformation expenses carried out after entering the non-heating period will be reflected in the operating results in the second half of the year. At the same time, the implementation of the operation reform also resulted in less recognized expenses in the first half of the year, resulting in better performance in the first half of the year.
Under the background of main business pressure, the company actively excavates new profit growth points. Due to the influence of high operating costs and environmental protection costs, the revenue and profitability of the traditional thermal power business have declined, and the company has been actively looking for new profit growth points on the basis of developing the original main business. the merger and acquisition of 100% equity in Jianghai Securities into listed companies through the issuance of shares and cash acquisitions will be completed in the second half of the year, which will help to broaden the company's revenue channels and realize the two-wheel drive of "public utilities + financial industry".
Jianghai Securities business license is perfect, traditionally relying on brokerage and proprietary business. Jianghai Securities was founded in 2003 with a registered capital of 1.786 billion yuan. Its business covers five major business sectors: securities and futures brokerage, proprietary investment, credit business, asset management and investment banking. In 2015, Jianghai Securities achieved an operating income of 2.065 billion yuan, an increase of 80% over the same period last year, and a net profit of 855 million yuan, an increase of 120% over the same period last year. Brokerage business and proprietary investment were the main sources of profit, with profit contributions of 51.37% and 24.83%. The characteristics of asset management business are obvious, and the advantages of directional asset management are obvious. the scale of asset management is 278.826 billion yuan in 2015, ranking 12th in the industry.
Refinancing to replenish capital and accelerate business expansion. At the end of 2015, the net capital of Jianghai Securities was 4.067 billion yuan, ranking 62nd in the industry, and the ranking of asset management business and brokerage business was better than the capital ranking. This matching financing of 5 billion yuan will effectively supplement the company's capital, and the company's net capital ranking will be greatly raised to about 37th. It is expected that the completion of financing will be conducive to the further development of credit and investment business.
It is expected that after the merger, the profitability of the company will be greatly thickened and the dual-main business layout will be realized. The operating income and net profit of Harbin Investment Co., Ltd. are 11.67 yuan and 124 million yuan, while those of Jianghai Securities are 2.065 billion yuan and 855 million yuan. We are optimistic that the merger and acquisition of Jianghai Securities will effectively supplement the new profit growth point. It is estimated that the EPS of the company in 16 and 17 years is 0.13 and 0.33, and the corresponding PE is 89.21X and 34.40X respectively.
