Event: the company revealed its semi-annual report of 2016, with revenue of 516 million yuan in the first half, an increase of 31% over the same period last year, a net profit of 63 million yuan, an increase of 37% over the same period last year, and a comprehensive gross profit margin of 60.06%, an increase of 4.1% over the same period last year.
Financial technology products: solid technological advantages, continuous innovation in research and development. The company's traditional advantage business is: process banking business, electronic banking business, image risk control business and insurance business, call center, traditional business continued to increase in the first half of the year, the company actively promoted new product development, risk management companies launched a comprehensive risk management system, integrated pricing, assets and liabilities, public and retail rating and other systems to maintain high school standard rate.
Financial technical services: connect institutional customers and build platform services. The company is committed to creating a consumer financial IT cloud service platform for the interaction of information flow and data flow among financial institutions, merchants and users. In the first half of the year, the new micro craftsman of the financial O2O aggregation platform under the technical craftsman launched. By opening the mobile phone banking interface, the new micro craftsman opened up all aspects of banking and financial services, bank users and businesses, and carried out financial scene innovation covering consumer services. The company funded the establishment of Hangzhou Xinyada Pan-Thai Technology Co., Ltd., to provide technical services for consumer finance.
Cutting-edge technology: layout block chain, the market potential can be expected. The company and Zhejiang University Wangxin, Junbao Communications jointly increase the capital of Hangzhou interesting chain Science and Technology. The company and Zhejiang University net newly increased capital by 5 million yuan respectively, with a shareholding ratio of 10% respectively. Interest chain Technology was founded in July 2016, with the research and development of the technology at the bottom of the block chain as the direction, with the core staff of the Block chain Laboratory of Zhejiang University as the co-founder, and the core teams all have doctorates. The core technology of interest chain technology is the self-controllable domestic alliance chain cloud platform, which serves many fields, such as finance, e-commerce, international shipping, copyright protection, real estate transaction, health care and so on.
Investment advice: the company maintains a leading edge in traditional banking business, makes continuous progress in the field of consumer financial innovation, and its performance is growing rapidly. The cutting-edge technology of the layout block chain is expected to form a good synergy with the financial IT business. It is estimated that the company's net profit growth rate from 2016 to 2018 is 48%, 35% and 21% respectively, and the scoreEPS is 0.41,0.55 and 0.67 yuan respectively. For the first time, coverage gives an "overweight" rating.
Risk hint: the progress of blockchain layout is lower than expected.
