The company announced its operating results in the first half of 2017: in the first half of 17 years, the company realized revenue of 103 million yuan (YoY% + 16.86%), investment income of 203 million yuan (YoY%-54.83%) and net profit of 188 million yuan (YoY%-38.82%).
The decline in investment income compared with the same period last year leads to negative growth in performance compared with the same period last year.
Under the influence of market factors and new regulatory regulations, the pace of withdrawal of investment projects further slowed down in the first half of 17 years, thus reducing the investment income and performance of the current period. Including changes in fair value, the investment income in the first half of 17 years was about 203 million yuan, down nearly 55% from the same period last year. Among them, through asset disposal and withdrawal means such as reduction of holdings, the cumulative recovery of funds was 165 million yuan, and the investment income was about 140 million yuan. In view of the possible impact of the new regulations on the exit side of the company, the company will adjust the exit strategy accordingly in the future. by increasing the exit ratio of mergers and acquisitions and the acquisition proportion of cash assets in transactions to alleviate the incremental factors of the lengthened exit cycle of the secondary market.
Continuous development of business and sound layout of venture capital business
In terms of traditional business, the order volume of abrasives business increased. In the first half of 17 years, the company's main business income of abrasives business reached 84 million yuan, an increase of 4.23% over the same period last year. However, the price of upstream raw materials has increased significantly, and the profit space of the company's traditional business has improved slightly.
In terms of venture capital, as of the end of June 2017, the company and the company as the main sponsors have funded a total of 32 market-oriented funds, with a total subscription scale of 12.5 billion yuan, a cumulative capital scale of 7.2 billion yuan, and an existing capital scale of 4.1 billion yuan. In the first half of 17 years, the company continued to invest in projects, and the funds funded by the main sponsors completed 12 investment projects with a total investment of 164 million yuan. In terms of project management, by the end of the reporting period, the company had a total of 126 investment projects in hand; the number of listed (listed), proposed listing and mentoring projects on the main board and the new third board market has achieved steady growth.
Short-term performance is still under pressure, long-term continue to be optimistic, continue to reduce the target price
As the company's main source of performance is still the investment income from the reduction of holdings in investment projects in the secondary market, before the market environment is significantly improved or the company's effective sources of investment income are further diversified, in the short term, the company's performance in the second half of the year is still under pressure. However, in the long run, we are still optimistic about the transformation and upgrading of the mechanism and business model brought about by the firm fund transformation of the company's investment business, as well as the company's strategic layout in strategic emerging industries and globalization.
We maintain the company's home net profit forecasts of 322 million yuan, 422 million yuan and 524 million yuan from 2017 to 2019. After the division estimates and sums up, the conservative estimate of the company's market value is about 16.4 billion yuan, corresponding to a value of 22.00 yuan per share, maintaining the "overweight" rating.
Risk hint: the company's performance is lower than expected, the development process of capital market diversification is not as expected, and the market risk