The performance of the interim report is improving, and the giant ship sets sail
The company's 17H achieved revenue of 13.872 billion yuan, YoY -1%; the net profit of the mother was 3,589 million yuan, YoY 19%, and the weighted average return on net assets was 5.32%. In the first half of the year, monetary policy was neutral and tight, regulations were strictly enforced, and the financial industry strengthened in the macro context of “deleveraging” and MPA, the company responded positively to changes in the external environment, established a regular internal communication and coordination mechanism, made every effort to share resources such as products, channels, customers, services, etc., deepened internal institutional mechanism reforms, and actively assisted financial enterprises to carry out equity investment, integrated industry-finance business, and bond issuance. All businesses had a good start.
The 12.9 billion yuan capital increase for trusts, leasing and banks was completed, and the capital adequacy ratio continued to improve
(1) Trust: In January '17, Kunlun Trust completed a capital increase of 7.2 billion yuan, increasing its registered capital from 3 billion yuan to 10.2 billion yuan. Of this, CNPC Asset, a wholly-owned subsidiary of CNPC Capital, increased its capital by 5.9 billion yuan. After completion, the shareholding ratio increased from 60% to 82%. (2) Leasing: In January '17, Kunlun Leasing completed a capital increase of 2 billion yuan. The registered capital was raised from 6 billion yuan to 8 billion yuan, of which CNPC Capital increased 1.2 billion yuan. After completion, the shareholding ratio remained unchanged at 60%. (3) Banks: In April '17, the company used the funds raised to replace 5.8 billion yuan of self-raised capital that had been pre-invested in the fund-raising project “Capital Increase to Kunlun Bank”. The capital adequacy ratios of CNPC Finance, Kunlun Bank, and Kunlun leasing increased from 17.32%/16.63%/15.91% at the end of 2016 to 17.37%/17.90%/19.15% at 17H, respectively.
The financial system, which is both deep and broad, relies on CNPC's collaborative and characteristic management
The company's financial sector covers the fields of banks, finance companies, financial leasing, trusts, insurance, insurance brokerage, securities and credit promotion. It has complete licenses and a large business scale. At the same time, the company relies on CNPC Group. Customer resources in the industrial chain are huge. All production and operation links contain rich financial service requirements. There is broad space for integration and integration of industry and finance. The company has vigorously expanded the industrial chain market, gave full play to its business familiarity with oil and gas and related industries, formed a differentiated competitive advantage different from other financial enterprises, effectively expanded the depth and breadth of industry-finance integration, and enhanced the value creation capacity of financial enterprises.
National reform is speeding up, and the Financial Stability and Development Commission has set up regulations and supervision
State-owned enterprise reforms in Shanghai and other places have recently been accelerated, and the “Shanghai Path” has surfaced. A series of reform actions such as asset injection, equity incentives and employee shareholding, capital operation of state-owned capital mobility platforms, and equity transfers will accelerate in the second half of the year. As a core asset with high returns and high leverage, financial control platforms can also feed back the real economy to support the transformation of traditional industries, and will be the highlight of the new round of national reform. The National Financial Work Conference held in mid-July proposed the establishment of the Financial Stability and Development Committee of the State Council, which will also guide the transformation of institutional supervision to functional supervision and behavioral supervision, further strengthen coordination of financial supervision, and make up for shortcomings in supervision. The financial control industry will develop steadily under regulatory regulations.
Shareholder resources+full license financial control+actual circulation market is small, maintaining the shareholding increase rating
The company's net profit from 2017 to 2019 is expected to be 64/72/7.7 billion yuan, and the corresponding EPS is 0.70/0.77/0.84 yuan respectively. Considering that the company relies on CNPC to play a synergistic role, there is a guarantee that financial assets will continue to be profitable; the company's circulation market is 5 billion yuan; excluding 60% of the majority shareholders' holdings, the actual circulation market is only about 3 billion yuan. The actual circulation market is small and flexible, which is the preferred target for capital. Maintain the increase in holdings rating.
Risk warning: Business collaboration is not as good as expected, risk of market fluctuations, transformation failure.