Main points of investment
Yixin Group is the largest Internet retail trading platform in China, with trading platform business and proprietary financing business going hand in hand. Trading platform business includes transaction facilitation services (transaction facilitation, loan facilitation, etc., charging service fees) and advertising and membership services (charging advertising fees and membership fees); proprietary leasing business includes financial leasing business (interest income), operating leasing services (rental services) and auto sales income (significantly reduced from 2017H). In proprietary leasing business, financial leasing (car loans, etc.) is the company's main source of income.
The Internet auto retail and auto financing market is developing rapidly. According to Frost&Sullivan data in the prospectus, benefiting from the upgrading of consumption, China's Internet auto retail market is expected to grow at a compound annual growth rate of 39.2% in 2016-2021, with a compound annual growth rate of 41.3%. In 2021, the transaction volume is expected to reach 5.4 million and 568.1 billion yuan respectively; at the same time, the auto financing market is expected to reach 3.41 trillion yuan by 2021.
The company is in a period of rapid growth and its revenue continues to grow. In 2015, the revenue of the company was 2.71 billion yuan, an increase of 465%, 449% and 240% respectively over the same period last year. The financial leasing business of special companies (car loans, etc.) was only 65 million yuan in 2015, and 2017H increased to 1.08 billion yuan, which strongly promoted the company's revenue growth.
It is recommended to apply for purchase. The Internet auto retail transaction and auto financing market is in a dividend period. The leading position in the company's industry gives Yixin an absolute advantage. At the same time, the shareholder status of Yi Che and Tencent provides a guarantee for the company's operation. Therefore, we suggest that investors apply.
Risk tips: 1) credit risk of financial lease funds; 2) related policy risks.
