Investment events:
The company invested 125 million yuan of its own capital to participate in Jiangsu Beckbang Investment Management Co., Ltd. and obtained 20% of the shares through a unilateral capital increase.
Report summary:
Participate in centralized long-term rental apartment management enterprises to enrich the housing scenario ecosystem. The company invested 125 million yuan to acquire 20% of the shares of Jiangsu Beckbang Investment Management Co., Ltd. Jiangsu Beckobang Investment Management Co., Ltd. is a centralized long-term rental apartment management enterprise. It has opened stores in Nanjing, Beijing, Shanghai, etc., and has opened more than 4,000 apartments in operation and in preparation. The corporate housing scenario ecosystem includes second-hand housing transactions, housing leasing, financial services, etc. The participation in long-term rental apartment management companies will fill the gaps in the company's housing ecosystem and further enrich the housing ecosystem.
Lay out the rental sector and provide rental platform services and rental financial services. In order to promote the development of the rental market, the country and local authorities introduced a series of incentive policies and launched housing rental pilot projects in 12 cities. The rental market is showing a good development trend. Aiming at the rental market with a broad market space, the company promoted the leasing service platform “Where Do I Rent” and launched a rental finance business using rent installments, mortgages, and renovation loans as products to provide systematic high-quality services to B-side leasing companies, professional landlords, and C-side tenants. Currently, the PC, touch screen, and mobile products of “Where Do I Rent” have all been launched, and the number of new users, listings, and phone calls have all increased; rental financial services have already been implemented in Nanjing, Shanghai, and Hefei.
Having obtained a small loan license for technology, the mutual fund business is developing rapidly. Nanjing 365 Internet Technology Microfinance Co., Ltd. is a holding subsidiary of the company. The company holds the Internet Technology Microfinance License.
Relying on the corporate housing scenario, the Internet financial service platform service business and the Internet small loan business are developing rapidly. In 2017, H1 365 Small Loan had revenue of 2,80967 million yuan, achieving net profit of 8.4315 million yuan; the balance of H1 loans in 2017 was 643 million yuan, compared to 399 million yuan at the end of 2016, an increase of 61.15%. The 365 Small Loan Company further improved its risk control strategy and actively opened up the Shenzhen and Tianjin markets while stabilizing existing channels.
Investment advice: The company's 2017/2018/2019 EPS is expected to be 0.57/0.70/0.89 yuan, and the corresponding PE is about 44.45/36.57/28.52 times, giving it an “increase in holdings” rating.
Risk warning: policy risk, real estate industry risk