Event: the company announced that it intends to initiate the establishment of "Science and Technology Insurance Co., Ltd." (hereinafter referred to as Science and Technology Insurance Co., Ltd.), with a registered capital of RMB 1 billion, of which the company plans to contribute 330 million yuan with its own funds.
Main points of investment:
Technology insurance has a bright future. Compared with general property insurance and life insurance companies, the underwriting objects of science and technology insurance companies are mainly legally operated high-tech enterprises, scientific research institutions and colleges and universities. the insurance scope is mainly for all kinds of science and technology enterprises or R & D institutions to face property loss, profit loss, scientific research fund loss and so on in R & D, production, sales or other management activities. And all kinds of civil liability for causing real injury to the property or person of shareholders, employees or a third party. By December 2016, China's premium income had exceeded 3 trillion yuan. The original insurance premium income in Beijing accounted for 6% of the country's original insurance premium income, of which property insurance premium income in Beijing area accounted for 4.23%. The property insurance premium income of four insurance companies that have been approved for science and technology insurance accounts for more than 50% of the national property insurance premium income. However, China's professional science and technology insurance companies are still in the early stage of development. at present, there is only one professional science and technology insurance company in China, and no professional science and technology insurance company has been set up in North China, especially in Beijing. As of November 2016, the total income of science and technology enterprises above the scale of Zhongguancun demonstration Zone reached 3.70157 trillion yuan, an increase of 12.9 percent over the same period last year, and the number of scientific and technological R & D personnel reached nearly 600000, an increase of 4.7 percent over the same period last year. In 2016, the total income of Zhongguancun accounted for 16.1% of the national high-tech zones, and there are broad market prospects for setting up professional science and technology insurance companies in Beijing.
It is proposed to establish science and technology insurance and continue to distribute finance to realize data realization: according to the goal disclosed in the announcement, at the beginning of the establishment of science and technology, it will focus on promoting 15 kinds of science and technology insurance approved by the State Insurance Regulatory Commission and the Ministry of Science and Technology. Within two years of opening, we will rely on the existing resources and the resource advantages of enterprises in Zhongguancun Innovation demonstration Zone to initially form technological advantages and brand advantages. Within five years of opening up, through the development of Internet channels and intelligent carrier channels, the Internet business model of advanced science and technology insurance has been formed, reaching the scale of medium insurance companies, and forming a stable company profit model. Kechuang is expected to become the first science and technology insurance company in North China. Feilixin to big data business as the core, and continue to layout the financial sector to achieve data realization. At present, the company has successively invested in the establishment of financial service platforms such as Beijing Wood Electronic Trading Center, Datong Forest Commodity Trading Center, Sichuan Merchants crop Trading Center and so on. This time, the company makes use of its own advantages of big data, Internet, credit information and information security technology, together with experts with rich experience in the insurance industry, will fully integrate the model of "Internet + Finance + Technology" and realize the combination of industry and finance. open up the upstream and downstream of the industry, and further expand the space for data realization.
Valuation and investment advice: the company's 17-19 net profit is expected to be $460, 601, 767 million, and EPS is 0.32, 0.42, 0.53. The current share price corresponds to a multiple of PE in 28-21-17, maintaining a "buy" rating.
Risk hint: insurance technology companies may fail if they are approved; big data's business progress is slow