1. Event

The company announced on the evening of August 7:

1. From January to June 2015, the operating income was 118 million yuan, an increase of 62.29% over the same period last year; the net profit belonging to the owner of the parent company was 7.05 million yuan, down 41.48% from the same period last year; and sales expenses and management expenses increased by 60.95% and 72.28%, respectively.

2. Recently, the company signed a "letter of intent" with Shanghai Fuzhishuo Equity Investment Partnership, Shanghai Gu Wen Investment Management Partnership and Shanghai Comprehensive an Investment Management Partner. invest 20 million yuan to establish Shanghai Internet Micro-Silver Financial Information Services Co., Ltd. (hereinafter referred to as "Internet Micro-Silver Financial Services").

two。 Our analysis and judgment

(1) the increase in revenue brought about by new customers and the decline in profits due to the increase in investment in new business, which is in line with the current strategic development stage of the company.

The company reported that its operating income from January to June 2015 was 118 million yuan, an increase of 62.29% over the same period last year, mainly due to the company's continuous expansion of new customers to increase customer stock while providing maintenance and upgrade services to old customers. There are 43 new customers, including 6 banks, and others are mainly new financial institutions and non-financial customers, such as micro-loan companies and P2P financial institutions. New customers have brought new sources of income. The net profit belonging to the owner of the parent company decreased by 41.48% compared with the same period last year, mainly because the R & D expenditure of 31.8113 million yuan in the current management expenses increased by 95.09% compared with 1630.60 yuan in the same period last year. The main R & D investment is as follows: first, the construction progress of the fund-raising project after the listing of the company is further accelerated, and the R & D investment continues to increase. Second, the company has gradually invested more resources in the new business direction, such as Internet financial services, big data services, small loan cloud services, corporate credit services, etc., this part of the business belongs to the investment period and is currently unable to contribute profits. In addition, the subsidiaries and shareholding companies acquired at the end of 2014 have obvious operating seasonality and are in a state of loss from January to June 2014. We believe that the company is still in the new business layout investment period, the early part of the layout brings revenue growth, other business is still in the investment stage, has not yet brought profit contribution, the reporting performance is in line with the company's current strategic development stage.

(2) to set up a joint venture "interconnected micro-silver financial service" to develop financial business outsourcing in cooperation with domestic commercial banks, which is conducive to the exploration of new business models, and has obvious synergy with the company's resources and previous business layout.

The company set up a joint venture to set up Shanghai Internet Micro-Bank Financial Information Services Co., Ltd., to develop cooperation with domestic commercial banks to carry out financial services outsourcing business, which will help the company to explore new business models. In addition to the company and related parties, Shanghai Deling Business Consulting Co., Ltd. is one of the companies composed of Sino-German small and Micro Financial Consulting Group (sino-German Small and MicroEnterprises Finance Consulting Group). Since 2008, Sino-German small and Micro Finance Consulting Group has provided domestic city commercial banks with services such as micro-finance full-process business consultation, personnel recruitment and training, IT system construction, etc., is one of the earliest domestic companies to carry out micro-finance consulting business, mainly through the outsourcing of bank small micro-loan business, foreign loan interest rate of more than 10%, profit by earning spreads.

The company has accumulated a large number of bank customers, especially small and medium-sized commercial banks, through credit, risk control and other business areas for many years, which is conducive to cooperation with banks in financial outsourcing business such as small and micro loans; at the same time, the company's expertise in credit, risk control, data services, credit and other fields is conducive to risk pricing, which is conducive to the company's continuous exploration of new business models, and the synergy effect is very obvious.

(3) the strategic layout of the company's transformation continues to land, the value of the business model is prominent, and the future value of the company is optimistic.

The future strategic layout of the company is expected to become a large financial asset trading platform, and the company continues to consolidate the asset end. In the early stage, it has participated in Liangshan commercial banks and set up an Internet finance company, taking a key step in Internet finance; establishing a small loan cloud platform to provide software and hardware, data services and business advice to small loan companies. At present, it has accumulated a large number of small micro-loan enterprises, including a large number of guarantee companies and small loan companies. The layout of the two wings of credit information and data services to realize the realization of Internet finance; the establishment of Pratt & Whitney Financial Company "an Shuo Zhi Xin Network" to create a marketing platform to open up the asset end and flow end, both B2B and B2C are possible; and the recent joint venture establishment of Shanghai Internet Micro-Bank Financial Information Services Co., Ltd., the company's business layout adds another important link, which will further consolidate the asset-side layout. We believe that in the context of the current financial reform, Internet finance, asset securitization, inclusive finance and other favorable policies continue to promote, the strategic layout of corporate transformation continues to land, business value has become increasingly prominent, optimistic about the future value of the company.

3. Investment suggestion

We believe that the company's reporting performance is in line with the company's current strategic development stage; the establishment of a joint venture "interconnected micro-silver financial service" to develop financial business outsourcing in cooperation with domestic commercial banks is conducive to the exploration of new business models and obvious synergy with the company's resources and pre-business layout; the strategic layout of the company's transformation continues to land, the value of the business model is prominent, and the future value of the company is optimistic. To maintain the profit forecast, we expect the company's EPS for 15-17 years to be 0.32,0.39 and 0.49 yuan, respectively, and maintain the "recommended" rating.

4. Risk hint

Business progress is not as expected; policy risk; increased competition; economic downturn brings the risk of performance decline.