The reorganization ends, the management is sound, and the double main business mode of "financial control + trade" is opened.
The total operating income of 2017H1 is 3.612 billion yuan, the total profit of YoY+19.84%; is 502 million yuan, and the net profit of YoY-18.73%; is 383 million yuan, and the YoY- is 8.53%. The overall performance is in line with expectations. The reorganization ended in May this year, completing the acquisition of 56 per cent of Zhejiang Gold Trust, 100 per cent of Dadi Futures and 50 per cent of China and South Korea Life, raising 1.2 billion yuan in matching funds. In terms of segment profit contribution, trade is 17.72 million yuan, finance is 449 million yuan, and real estate is 144 million yuan. In the future, the company will shrink its real estate business and adhere to the development of the two wings of "financial control + commerce".
Promote the construction of financial control platform and create a characteristic large capital management model
The company's financial sector has covered trust, futures, insurance, fund management, financial leasing and wealth management, forming a diversified and multi-level asset management business system. The next step will be around the "big asset management" core strategic development direction, actively give play to the synergistic effect of multi-license plate. In addition, the company increased its capital to Zhejiang Gold Trust with 950 million yuan of the funds raised and 6.72 million yuan of its own capital. The capital increase was completed in June. After the capital increase, the company's shareholding in Zhejiang Gold Trust increased to 78%. The company increases its capital to China and South Korea Life Insurance with 250 million yuan of the funds raised, and the capital increase is in the process of being processed.
Speed up the transformation of the business sector
The company's textile and clothing exports ranked 13th in the country in 2015 and 12th in 2016, with strong competitiveness in the industry. The company will actively promote the merger of foreign trade sectors, integrate traditional business and cross-border e-commerce business, increase investment in R & D and design production lines, enhance independent R & D capabilities, and cultivate independent brands.
Enjoy the geographical advantage, take advantage of the national reform policy, and benefit from the development of quantum communication industry.
Zhejiang regional economy is developed, "Belt and Road Initiative" construction, the Yangtze River economic belt is conducive to the development of the company. This restructuring is a major strategic plan for the provincial party committee and provincial government to promote the overall listing of state-owned enterprises and the reform of mixed ownership, and to build the first financial control platform in Zhejiang Province, which will receive strong policy support. The majority shareholder ITC Group is rich in financial assets, including non-performing assets management, banking, guarantee, factoring and so on. The company relies on shareholder resources and has a broad space for cooperation. Zhaofu Fund of Zhejiang Oriental subsidiary invests Zhejiang Shenzhou Quantum Network Technology Co., Ltd and HKUST Guodun Quantum Technology Co., Ltd., which directly benefits from the development of quantum communication industry and is expected to become a capitalization platform of quantum communication in the future.
Maintain the buy rating
The assets of the original listed companies: the transformation of commerce and trade has been promoted, the disposal of real estate has been accelerated, the return on financial investment has been sound, the overall revenue has grown at a growth rate of 10%, 15% and 15%, and contributed 717 million, 797 million and 906 million of the parent profit. The corresponding annual estimate of 22-25 times PE,2017 is about 15.8 billion-17.9 billion. Injection of underlying assets: based on the profitability of the underlying assets and the thickening effect of capital increase on performance, the return profit forecast for the next three years will be raised from 160 million, 206 million, 254 million to 165 million, 214 million, 268 million. In the first half of the year, the valuation center of the financial control sector moved down as a whole, carefully considering giving 25-28 times PE, with a corresponding valuation of 4.1 billion-4.6 billion in 2017. Comprehensive valuation: the total market capitalization is estimated to be about 199-22.5 billion yuan in 2017, with 673 million shares of equity after the completion of the restructuring, with a target price of 30-33 yuan, maintaining the buy rating.
Risk hint: the price of commercial products fluctuates greatly, and the development of financial business is not as expected.
