This report is read as follows:
Driven by the dual main business of "Financial Control + Trade", the company will comprehensively increase capital to its financial control platform in 2019 to enhance its capital strength, and the synergy effect of large capital management layout in the future is expected. Trade circulation business has stabilized, and cross-border layout has promoted the optimization of the industrial chain.
Main points of investment:
Investment suggestion: "financial control + business" dual main business drive, financial control platform coordination can be expected. It is estimated that in 2019-2021, EPS 0.58, 0.68, and 0.82 yuan, the reference comparable company will give the company 1.6 times PB, with a target price of 13 yuan, which will be covered for the first time and will be cautiously overrated.
It has successfully transformed from a commercial enterprise to a dual main business drive of "financial control + business", and has become the first state-owned listed financial control platform in Zhejiang Province. In 2017, the company acquired 56% of the shares in Zhejiang Gold Trust, 100% of Dadi Futures and 50% of China and South Korea Life through asset restructuring, and then increased its shareholding to 78% by increasing capital to Zhejiang Gold Trust. The formation of a financial control platform covering trust + futures + insurance + financial leasing + funds + direct investment and other scarce license resources. Revenue from the financial business of 2018 and 2019H1 increased by 115% and 149%, respectively, and the effectiveness of the integration was highlighted.
Vigorously promote the construction of financial control platform, the synergy effect of large capital management can be expected. In 2019, the company completed a capital increase of US $30 million for Guojin leasing, promoted the capital increase of 500 million yuan for China and South Korea Life Insurance, and promoted the capital increase of 70 million yuan for Dadi (Hong Kong) Financial Company to further enhance the capital strength of financial companies. The leasing income of 19H1 Zhejiang Gold Trust, Dadi Futures, China and South Korea Life Insurance and Guojin increased by 22%, 205%, 14% and 76% respectively compared with the same period last year. The company has introduced 46 market-oriented financial professionals to provide manpower support for the long-term development of the financial control platform, and the synergy of various sectors of financial control can be released in the future.
The business of trade circulation has stabilized steadily, and the transnational layout has been explored to promote the optimization and upgrading of the industrial chain. The company's trading business covers the export of clothing, home textiles, shoes and boots, as well as risk-free domestic trade of commodities such as silver, rubber, PTA and so on. In 2019, the company visited Vietnam, Myanmar, Cambodia and other countries to explore the establishment of production bases in Southeast Asia. Jianye has tried the water to lay out production bases in Myanmar, exploring the vertical extension of industrial chains such as raw materials, design and brands, and optimizing the industrial layout. The participating company Shidanu Group actively promotes the listing of H shares.
Risk tips: financial control plate integration effect is not as expected, increased trade frictions, exchange rate fluctuations and so on.
