Event: CCTV-2 Financial Channel "Economic half hour" broadcast an exclusive interview with Wangsheng supply chain Finance on February 1, 2019. In the program, Mr. Sun, chairman of the company, made a detailed exposition on the business model, development and industry pain points of the Wangsheng supply chain financial platform.
Comments: in recent years, the company has been committed to building a supply chain financial platform that integrates information, transaction, finance and logistics functions. Under the environment that the government pays more and more attention to solving the financing problem of small and micro enterprises, the company's supply chain financial platform is expected to accelerate the development and contribute to the performance.
The development of supply chain finance is smooth, and the business model is becoming more and more mature and perfect. In order to solve the problem of capital demand in the process of bulk transactions, the company has launched a financing service platform since 2015. This is an online financing product based on supply chain for small and medium-sized enterprises, which has been launched in conjunction with a number of banks. After the launch, it has achieved a good market response. In terms of access to the bank: 15 years access to the first bank to do the first financing transaction. It has accessed 2 banks in 16 years and reached 4 in 17 years. As of February 2019, the Internet Sheng financing platform has connected to 7 banks and is still discussing cooperation with 5 banks.
Access to core enterprises: in more than three years, the company has attracted more than 3000 large core enterprises to settle in the supply chain financial platform. In terms of loans: since the first loan in 2015, the Wangsheng supply chain financial platform has issued more than 30,000 loans to more than 2600 small and medium-sized enterprises, with a total loan of more than 7 billion yuan. Monthly loans have also increased from more than 40 million yuan at the beginning of 17 to nearly 800 million yuan now. recently (January 1-20, 2019), more than 1000 small and medium-sized enterprises have borrowed nearly 500 million yuan from the financing platform.
Risk control: the defect rate is well controlled, among which Bank of Communications, as the first bank to cooperate with the company, has a total credit line of 1 billion yuan to the Wangsheng business treasure trading platform, and so far there has not been a sum of overdue and interest arrears. With the rapid increase of access to banks and transaction volume, supply chain finance is expected to bring new performance growth points to the company in the future.
After three years of market operation and research, Wangsheng supply chain financial business model has become increasingly mature and perfect. According to the exclusive interview with CCTV, it can be seen that the latest Wangsheng supply chain financial platform has been able to meet the actual requirements of the loan parties in terms of transaction rules, guarantee methods and loan monitoring, and basically solve the pain points of financing difficulties and accounts receivable arrears of small and medium-sized enterprises under the premise of risk control.
The market space is huge
The default of accounts receivable has always been a pain point for the development of enterprises. According to the data released by the National Bureau of Statistics, by the end of December 2018, the balance of accounts receivable of industrial enterprises above scale in China was 14 trillion, accounting for 13.67% of the cumulative revenue in the same period. Taking into account the risk of triangular debts and other issues, the default of accounts receivable has a great impact on the development of enterprises.
The financing problem of small and medium-sized enterprises in China is serious. According to the report "financing gaps for small and medium-sized Enterprises: an Assessment of financing deficiencies and opportunities for Micro, small and medium-sized Enterprises in emerging Markets" jointly released by the World Bank, the SME Finance Forum and the International Finance Corporation in January 2018, the financing needs of China's 5600 million small and medium-sized enterprises are estimated to reach US $4.4 trillion, more than 27 trillion yuan, equivalent to 40% of China's GDP in 2015. It accounts for about half of the total financing needs of developing countries in the world, and 40% of small and medium-sized enterprises in China are subject to credit constraints. The financing problem of small and medium-sized enterprises in China is serious, so innovative financial service models are imperative.
To a certain extent, Wangsheng supply chain finance has solved the financing difficulties and expensive financing problems of small and medium-sized enterprises, which are highly concerned by governments at all levels, as well as the difficulties, high costs and high risks faced by banks; basically solve the pain points of financing difficulties and accounts receivable arrears of small and medium-sized enterprises under the premise of risk control.
Earnings forecast, valuation and rating
Optimistic about the drainage effect of the company as the largest industry e-commerce operator and the leading comprehensive B2B operator in China and the performance realization brought by power supply chain finance, the revenue forecast of the maintenance company from 2018 to 2020 is 4.21,4.76 and 538 million yuan, respectively. The net profits of shareholders belonging to listed companies are estimated to be 0.36,0.76 and 121 million yuan respectively. Maintain the "overweight" rating.
Risk Tips:
The development of Wangsheng financing platform is lower than expected, the bad debt rate of Wangsheng financing platform is higher than expected, and the overall valuation level of the market is declining.