Event
On February 8, Anxin Trust released its 2017 annual report. In 2017, the company achieved operating income of 5.592 billion yuan, an increase of 6.60% over the same period last year, a net profit of 3.668 billion yuan, an increase of 20.91% over the same period last year, and a basic earnings per share of 0.80 yuan, an increase of 3.30% over the same period last year. The net asset at the end of the year was 16.191 billion yuan, an increase of 18.03% over the same period last year.
Main points of investment
The advantages of the business model of the service industry appear, laying the foundation for the company's long-term, stable and sustainable development. The company has always adhered to the business model of positioning trust business as industrial investment bank and serving the real economy, and achieved positive results. First, the operating capacity of the trust source business is strong, the competitiveness of the company continues to improve, and the market ranking and market share continue to rise. Second, the ability of active management continues to strengthen, the dependence of channel business is weak, and the ability to resist the impact of the development and transformation of large asset management industry and sustained and sound operation is significantly strengthened. Third, focus on improving the level of specialization, the ability of risk management is constantly improving, and the professional abilities of adjustment, evaluation and post-investment management are constantly improved.
It is expected that the large asset management industry will usher in a greater adjustment, the development of active management business, reduce channel business dependence will become the trend of the industry development. The advantages of the business model of Anxin Trust are expected to be less affected by industry adjustment, the competitive advantage will be further expanded, the ability to seize opportunities to fill market gaps is stronger, and market share and business performance are expected to increase steadily.
We will actively increase capital to speed up the growth of capital scale and further open up room for growth. Following the continuous capital increase in 2015 and 2016, the company started the capital increase of preferred shares in 2017. Under the regulatory rules that the business scale of trust companies is restricted by net capital, increasing capital scale is an important guarantee to open up the growth space of trust companies.
Investment suggestion: it is predicted that the basic earnings per share of the company from 2018 to 2020 will be 0.90,1.02,1.15 yuan respectively, and the net assets per share will be 3.96,4.48,5.14 yuan respectively. According to the valuation of the comparable company, the company will be given a buy rating of 16.7 times PE and the target price is 15.03 yuan.
Risk hint: the macroeconomic situation is lower than expected, and the depth of industry adjustment is higher than expected.