Finance Finance is the leading financing and leasing company in Hubei Province, which has the longest operating history in Hubei Province. According to Monitor International, on December 31, 2014, JMC ranked first among the financial leasing companies in Hubei Province with a total output of 1.73 billion yuan. Since its establishment in 2008, it has focused on and focused on the financing needs of small and medium-sized enterprises in Wuhan and other places in Hubei Province. on 31 July 2015, there were 86 customers involved in different industries.

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The company is in charge of

(1) having an excellent geographical position and grasping the financial opportunities arising from the plan to promote the rise of the central region; (2) having experience in serving small and medium-sized enterprises; (3) being an outstanding leader in the financing and leasing industry in Hubei Province and having a diversified base customer base; (4) strong financial growth and stable financing channels to support the development of financial services. (5) have excellent financial management skills, and have put in place measures and methods that can be further dispersed and reduced; (6) have rich and dedicated senior management skills, excellent executive skills and rich financial rights; and (7) have strong corporate stocks, and they help set a high level of corporate governance standards to meet high standards of corporate governance.

Overview of the industry

According to the report on the development of China's financial, rental and rental industries, in 2010, the value of outstanding contracts was 7000 yuan, but in 2014, four years later, it increased to 32000 billion yuan, an increase of 357.1 percent or a compound annual growth rate of 46.2 percent. At the end of 2014, a total of 2202 financial and leasing companies were active in China, while the total number of financial leasing companies in China increased by 1109.9% in 2010.

According to the business statistics of Hubei Province, at the end of 2014, there were 21 financial and leasing companies in Hubei Province, an increase of 90.9% compared with 2013. By the end of 2014, there were 2 bank financing and leasing companies (2013: 1), 10 domestic financial leasing companies (2013: 2) and 9 foreign-invested financial leasing companies (2013: 8). The total number of internal finance and leasing companies in Hubei Province has increased rapidly.

By the end of 2014, the total cost of financing and leasing companies in Hubei Province reached 5 billion yuan, an increase of 150 percent over 2013. Due to the strong demand for advanced equipment and other technology support from pillar industries (such as automotive, metallurgy, machinery, consumer goods and optical information industry), as well as the ability to meet such demand, the financial leasing industry in Hubei Province has been growing and will continue to grow.

In 2014, the cost of the domestic financial leasing company was 680.0 million yuan for the people. Compared with domestic financial leasing companies, foreign investment companies reached 20 yuan in 2014, while compared with foreign investment companies, domestic companies accounted for 34% of the total cost.

In 2014, the outstanding contract value of foreign-invested financial leasing companies in Hubei Province reached 105 billion yuan. Compared with foreign-invested companies, domestic financial leasing companies reached 8.5 million yuan, and accounted for 8.1% of the outstanding contract value compared with foreign-invested financial leasing companies.

According to the Hubei Provincial Business Bureau, foreign-funded financial and financial leasing companies played an important role in Hubei Province in 2014. By the end of 2014, the total output of Hubei financing and leasing companies reached 58 million yuan, while the total output of foreign-invested companies exceeded 4 billion yuan, accounting for more than 70 percent of the total. China Finance Corporation is the leading foreign investment company in Hubei Province, with a total output of 1.73 billion yuan in 2014, accounting for 29.8% of the total output.

Profit ability and duty number

Based on the historical records of the past three years, the revenue of the collection company increased from HK $181.8 million in 2013 to HK $226.9 million in 2015, with a compound annual growth rate of 11.7%. Malaysia retrogressed from HK $6.70 million in 2013 to HK $6.56 million in 2015. The increase in total revenue during the previous period was mainly due to the increase in the total number of customers and the total amount of rental receivables.

Collection purpose

The HK $188.8 (calculated at HK $2.30 per share) from this collection will be used for the following purposes: about 60 per cent of the funds will be used for the development of financial and rental services in Hubei Province; about 30 per cent will be used for the development of rental-related business opportunities in other cities in China similar to that of Wuhan and other cities in Hubei Province; about 10 per cent) will be used for general investment.

Valuation

According to the IPO HK$2.11 to 2.48, the historical price-to-earnings ratio of financial finance is 12.9-15.1 times, and the price-to-market ratio is about 1.06-1.18 times. 3360.HK, which is also engaged in financial and rental services, trades at about 7.2x and 1.03x; 3903.HK, with a multiple of 7.5x and 0.54x; and 6866.HK, which is the main financial institution, has a P / E ratio of 7.9x and 0.8x, and the financial valuation is high. At that time, the market is only concentrated in different provinces and cities, and the valuation is too high, so we only recommend investors as speculative investors.

Negative factor

(1) most of the income comes from small and medium-sized enterprises. compared with large enterprises, small and medium-sized enterprises are vulnerable to adverse market, economic and overall economic conditions. (2) Markets cannot guarantee that they will be able to match their assets with their maturity in the course of development. Failure to match will affect the liquidity of funds and the ability to repay loans and settle due obligations; (3) higher interest rates may increase borrowing costs, but may not be able to effectively marry borrowing costs to customers; (4) use a small number of banks as a source of capital; (5) a high concentration of customers may lead to fluctuations or reductions in income. (6) lessees are concentrated in minority industries, and any negative impact on such industries will directly affect their ability to rent and pay; (7) transactions are concentrated in Hubei Province. The business, prospects, operating conditions and operating conditions of the market may be greatly adversely affected by the major retrogression of the business concentrated in Hubei Province.