The net profit of home ownership increased by + 21% compared with the same period last year, in line with expectations.
In 2017, the operating income was 5.592 billion yuan, YoY + 6.6%; the net profit was 3.668 billion yuan, YoY + 20.91%, and the basic earnings per share was 0.8049 yuan. The weighted ROE25.23%, was in line with expectations. In a single quarter, the net profit from the first quarter to the fourth quarter was 1.02 billion, 592 million, 1.213 billion and 843 million respectively. The decline in trust main business and investment both brought a full-year low in the second quarter, and the repair of trust main business continued in the third quarter. The company has abundant capital, sound operation, excellent active management ability and maintenance of holding rating.
The income of the trust business has been repaired since the third quarter, with strong active management ability and steady development.
The net income of handling fee and commission is 5.28 billion yuan, and the contribution ratio of YoY+16.9%, is 94.4%. From the perspective of a single quarter, the net income of commission and commission in the first-fourth quarter was 1.569 billion, 787 million, 1.307 billion and 1.616 billion respectively. It was the lowest for the whole year in the second quarter and improved steadily from the third quarter. Due to the pressure on the overall scale of the trust removal industry, the company was entrusted with managing trust assets of 232.551 billion yuan in 2017, basically the same as last year, of which active management accounted for 68% of the total scale, and the weighted annualized trust return rate was 1.92%, which is at the leading level in the industry. The company has excellent active management ability and is expected to take the lead in the transformation of active management in the industry.
Floating investment losses, inherent business pressure, will be committed to improving the risk resistance of inherent business assets, net interest income 126 million, YoY-29%, contribution accounts for 2.25%. The net income of investment is 785 million, and the contribution ratio of YoY+180%, is 14%. Fair value change net income-598 million, YoY-319%, contribution ratio-11%. The floating loss of fair value is due to the floating loss of 100 million yuan of listed equity instruments with restricted conditions caused by the change of accounting valuation methods, and the transfer of assets turns the 1.56 floating profits realized in previous years into investment income. Third, floating losses of about 340 million are caused by fluctuations in the capital market. In the future, the company will further strengthen the investment management of financial assets and enhance the anti-risk ability of inherent business assets.
Steadily explore the layout of financial control, and invest in CITIC Deng to jointly promote the development of the industry to participate in many financial companies, such as CITIC Bank International, Yingkou Bank, Bohai Life Insurance and other financial companies. in the future, the company will strive to strengthen the strategic coordination and tactical complementarity of various sectors of the financial industry. effectively enhance the capacity of comprehensive financial services, and gradually comply with the trend to build a comprehensive financial platform. In addition, to participate in the establishment of China Trust Registration Co., Ltd., CITIC Dengding is located in the first unified trust product registration and trading platform in China. CITIC Deng shows that the company actively assumes industry responsibility, which helps to enhance the status of the industry and win more room for development.
Increase capital to open up space and maintain the rating of "increasing holdings"
In September, the company announced that it intends to raise no more than 6.8 billion yuan by issuing preferred shares, and if the capital increase goes smoothly, it will further release the space for development. Considering that the trust industry is facing the pressure of transformation and upgrading under the background of coordinated supervision of large assets management, the forecast of 2018-2019 EPS 0.97max 1.12 yuan is slightly reduced to 0.92max 1.08 yuan. At the same time, the trust scale repair growth is expected in 2020, and the EPS1.24 yuan is predicted. Then the PE in 2018-2020 will be doubled in 14-12-10. The company has excellent active management ability, continuous optimization of business structure, and first-mover advantage in the context of industry active management transformation, giving the company 16-20 times PE in 2018, corresponding to the target price of 15-18 yuan, and maintaining the "overweight" rating.
Risk Tip: trust asset quality problems, the trust industry transformation and upgrading is slower than expected.
