Main points of investment:
The company's performance has risen sharply.
Actively carry out derivatives investment business based on the combination of future and cash
Service-oriented and financialized trade
Summary of the report:
Performance has risen sharply. In the face of the downward pressure of the national economy in 2014, the company's performance did not decline but rose sharply, achieving operating income of 45.639 billion yuan, an increase of 0.98% over the same period last year, and a net profit of 233 million yuan for shareholders belonging to the parent company, an increase of 535.2% over the same period last year. In the first quarter of 15 years, the operating income was 10.078 billion yuan, an increase of 7.01% over the same period last year, and the net profit of shareholders belonging to the parent company was 142 million yuan, an increase of 887.53% over the same period last year, due to a sharp increase in futures earnings at the end of the period. The company's performance has risen sharply, mainly due to the development strategy of trade service and financialization, making full use of the combination of future and present to evade price risk and open up sales channels. Compared with Sinochem International's operating income, market capitalization and net profit, the company is undervalued by the market.
Actively carry out the derivatives investment business of the combination of future and cash. The company invested 25.5 million yuan to set up Zhejiang Longlean Asset Management Co., Ltd. in 2015, Broad products and its subordinate companies will carry out margin investment of no more than 2 billion yuan in derivatives investment business. The use of futures can help Broad products to face the falling commodity prices in the market environment, can still expand the scale of trade, through the combination of futures and present to achieve synergy, avoid risks and promote each other at the same time. Continue to be optimistic about the operation mode of the combination of future and cash.
We will continue to adhere to the development strategy of "service and finance of trade, globalization of operation, collectivization, institutionalization and refinement of management". The company will continue to use increasingly rich and perfect financial tools to create the best service, the lowest risk commodity trading platform, to build international enterprise groups.
Profit forecast and valuation. According to our profit forecast model, the company's revenue from 2015 to 2017 is 50.33 billion, 56.423 billion and 63.272 billion, the corresponding net profit is 453 million, 606 million and 785 million, the EPS is 2.24,2.99,3.88 yuan, and the corresponding PE is 29X\ 21X\ 17X, giving a "buy" rating for the first time.
