Strong background of state-owned assets and significant regional advantages
The controlling shareholder of the company is Zhuhai Financial Control, and the actual control is Zhuhai SASAC. Zhuhai, which is connected with Hong Kong and Macao, is at the forefront of economic development. There are many small and medium-sized scientific and technological enterprises, and economic development depends on more financial support. As an important collection of financial assets in Zhuhai, Zhuhai Financial Control is the core platform for operating state-owned financial assets and industrial investment, and undertakes the important task of resource integration and local economic development. The degree of securitization of Zhuhai Financial Control assets is low. As its only listing platform, the company will rely on the resource advantages of the controlling shareholders, develop the resource coordination within the group, and make use of the regional advantages of the Pearl River Delta, which will have good development prospects in the future.
The prospect of transforming venture capital is broad, and two-wheel drive promotes development.
The company is currently actively transforming venture capital, holding more than 20 venture capital companies, involving science and technology, culture, strategic emerging category, real estate and other fields, the total amount of funds raised has exceeded 5 billion yuan, the choice of investment targets is diversified, risk diversification. Under the tide of "mass entrepreneurship and innovation", the rapid development of small and medium-sized enterprises and scientific and technological enterprises has greatly increased the financing demand, with a flexible exit mechanism, considerable profit space. The employee stock ownership platform not only improves the project screening criteria to a certain extent, but also aligns the interests of employees and management, stimulates the enthusiasm of employees and enhances the vitality of the market. The company's three major industrial subsidiaries still maintain a good reputation and strong market competitiveness, and actively rely on capital market tools to support business development, the prospect is considerable. Relying on the "industry + venture capital" two-wheel drive model, the company accelerates the transformation and upgrading of the industry.
The reform of state-owned enterprises is accelerating, and asset integration is expected to be strong.
Local governments are accelerating the reform of state-owned enterprises with the support of a series of policies, among which the first target of state reform in Guangzhou has been landed. As an important region of Guangdong and an important part of the Pearl River Delta, Zhuhai is also accelerating the reform of state-owned enterprises. The successful experience of Yuexiu Financial Control's overall injection of Guangzhou Friendship can be used as a reference for the company's asset integration in the future. As the only listing platform of Zhuhai Financial Control, the company is the most direct beneficiary in the reform of state-owned enterprises in Zhuhai. Zhuhai Financial Holdings has rich financial assets, including 12 participating financial institutions and 9 quasi-financial institutions, with a layout in the country's core financial cities. by the end of 2015, the total assets have reached 21.6 billion, and the scale of assets under management has exceeded 35 billion. Once the assets are integrated, it will greatly increase the market capitalization and profitability. The construction of local financial control platform will be able to make effective use of internal resources to highlight its advantages such as resource coordination, financing convenience, brand effect and so on.
Coverage for the first time, giving "overweight" rating
Logic one: corporate transformation venture capital, in the process of capital market reform, the equity market has many high-quality targets. With the improvement of system construction and the advantages of resources in Zhuhai, small and medium-sized enterprises will be more active and have a broad venture capital market. Logic 2: the reform of local state-owned enterprises is accelerating, the degree of asset securitization is also increasing, the advantages of state-owned enterprise reform will significantly enhance the value of the company, and there will be greater expectations of state reform under the background of SASAC. Logic 3: Zhuhai Financial Control has rich licenses. As the only listing platform under Zhuhai Financial Control, asset integration is expected to be strong. Once asset integration is completed, it will greatly enhance the market value and profitability. Taking into account the pace of national reform and financial asset integration, the company is expected to have trading investment opportunities, covering for the first time to give an overweight rating, the EPS is expected to be 0.09,0.11,0.12 yuan in 2016-18, using segment PE valuation method, the target price is 18-20 yuan.
Risk hint: the risk of market volatility and the reform of state-owned enterprises are not as expected.