Items:

Matters: on the evening of February 7, Anxin Trust released its annual report for 2017. during the period, the company achieved a total operating income of 5.592 billion yuan, an increase of 6.6% over the same period last year, and the net profit belonging to the owner of the parent company was more than 3.668 billion yuan, an increase of 20.91% over the same period last year. In 2017, the company plans to pay a cash dividend of 5 yuan for every 10 shares to all shareholders and increase 2 shares for every 10 shares in the capital reserve.

Main points of investment

1. The growth of trust business is in line with expectations, and inherent business investment is a drag.

On the whole, the company's performance was in line with expectations, and the trust business continued to maintain steady growth. The annual return for the trust business was 5.244 billion yuan, an increase of 19.35% over the same period last year. In terms of inherent business, the interest income was 498 million yuan, an increase of 52.59% over the same period last year, and the growth was relatively steady; the investment income increased by 505 million yuan, but the fair value change income was-597 million yuan, a decrease of 870 million yuan compared with last year, a combined decrease of 365 million yuan. The performance of the investment side is a drag on the overall performance of the inherent business. In a single quarter, the revenue in the fourth quarter was about 1.396 billion yuan, a decrease of 24% from the previous quarter and 21% from the same period last year, while the net profit from the mother was 843 million yuan, a decrease of 30% from the previous quarter and an increase of 16% over the same period last year. The main reason is that the performance base of Q3 is higher, the interest rate of Q4 is higher, and the market capital is further tightened. In addition, the company changes the equity instrument investment model in accordance with relevant laws and regulations, so that the impact of financial assets measured at fair value and whose changes are included in the current profit and loss will reduce the current profit by more than 100 million yuan.

two。 The scale of trust assets management has shrunk slightly, the proportion of active management has continued to increase, and regulatory indicators have fallen.

In 2017, the scale of trust assets under management reached 232.551 billion yuan, a decrease of 2.401 billion yuan over the same period last year, the same as the overall scale in 2016. Active management scale accounts for 68%, an increase of about 7.82 percentage points over 2016. Under the background of the elimination of regulatory channels, the company's active management scale continues to increase. Among the new trust projects in 2017, collective trusts totaled 52.395 billion yuan, accounting for 71.25%, and single-category trusts totaled 21.139 billion yuan, accounting for 28.75%. The proportion of corporate collective trusts continued to increase.

In terms of risk control indicators, among the two important indicators in the industry, the sum of the company's net capital / business venture capital is 215.33% (the regulatory index is ≥ 100%), down 43.23% from last year, and the net capital / net asset is 76.49% (the regulatory index is ≥ 40%), down 5.75% from last year.

3. The proportion of shares held by CSC and Huijin has decreased.

CSC continued to increase its shareholding to 3.68%, and its shareholding increased by 0.21%, but Huijin's shareholding did not continue to appear in the top 10 tradable shareholders, and the proportion of reduction is expected to be more than 0.35%, and the combined shareholding ratio of the two decreased.

4. Extension expansion continues to advance, and finance and industry are developed at the same time

In the extension expansion of the financial sector, the company continues to enhance its ability to acquire high-quality assets to subscribe for no more than 411778133 new shares of China CITIC Bank Corporation (International) non-public offering at a subscription price of HK $2.99 per share at no more than HK $1.23122 billion. Upon completion of the rights issue, Anxin Trust holds a stake of no more than 3.4 per cent of the total share capital of CITIC Bank International. The company's overseas asset layout continues to lead the industry.

In terms of industry, as of February 2, the company had purchased 106716800 shares of listed companies (6.03% of the total shares of listed companies) held by Xiao Wengge, the controlling shareholder of Indian Media (002143.SZ), by agreement, with a transfer price of 12.75 yuan per share, with a total transfer price of more than 1.360 billion yuan. As of February 1, imprint Media shares closed at 12.09 yuan per share, down 9.98% on the day, making controlling shareholders Xiao Wengge and Indo Ji Huacheng some of the company shares pledged to the pledgee hit the closing line before the pledge expires. At present, Indy Media is in the suspension stage, and shareholders are actively planning to deal with the risk of closing positions by means of supplementary pledge, margin payment or repurchase in advance.

5. Investment advice:

A series of industry regulations with the new regulations on asset management as the core will continue to be issued, and the channel trust will face greater adjustment pressure. The company has been adhering to the active management as the core business strategy leading the industry and in line with regulatory guidance. Operating pressure is relatively small. In 2018, the entry of MSCI funds accelerated, and the company continued to benefit as the sole trust target. We estimate that the company's EPS in 2018 and 2019 will be 0.87 yuan per share and 0.92 yuan per share, respectively, and the corresponding Pamp E will be 13.96 times that of 14.76 picks, maintaining a "recommended" rating.

6. Risk hint: the peripheral capital market continues to fluctuate, the company's business development is not as expected, and the underlying stock of equity investment has a big pullback.