Aijian Group disclosed its 2020 quarterly report. The performance was in line with expectations. In the first quarter of 2020, the company achieved operating income of 836 million yuan, a year-on-year decrease of 2.41%; net profit attributable to shareholders of the parent company was 288 million yuan, an increase of 8.99% over the previous year. EPS for the first quarter was 0.178 yuan, up 12.5% year on year; weighted ROE for the first quarter was 2.64%, down 0.07 percentage points year on year. The company's performance grew steadily, in line with market expectations. Back to active management, Aijian Trust, which has contributed the most in return on investment, continues to strengthen active management capabilities, leading the company's profit growth. In the first quarter of 2020, Aijian Group achieved investment income of 154 million yuan, an increase of 158.18% over the previous year. This revenue mainly comes from trust plan income calculated by Aijian Trust. Fee revenue declined and interest income increased Under the “de-channeling” trend of trust business, the scale of the company's channel business declined sharply, and fee and commission revenue declined further. Revenue achieved 315 million yuan in the first quarter, a year-on-year decrease of 12.01%. Interest income for the first quarter was 172 million yuan, an increase of 47.01% over the previous year. This was mainly due to the increase in interest income from Aijian Trust's merger of structured entities in the current period. The increase in majority shareholders' holdings highlights development confidence. On March 20, 2020, Aijian Group issued the “Notice on Shareholders' Plans to Increase Shareholders' Shareholdings in the Company”, announcing that the company's shareholder Junyao Group plans to increase their holdings by a minimum of no less than 0.1% and a maximum of no more than 0.5% of Aijian Group's shares within 6 months from March 20, 2020. Junyao Group has full confidence in the future development of Aijian Group. The purpose of increasing its holdings is to build a century-old Aijian Group and achieve the standardized corporate governance structure and modern enterprise system of Aijian Group. Profit forecasts and investment recommendations We forecast a net profit growth rate of 6%/6%/4% in 2020-2022. The PE corresponding to the current stock price is 9.16/8.61/8.29x, and PB is 1.09/1.00/0.92x. Based on the company's comprehensive financial layout, business synergy, flexible institutional advantages, strong brand influence, and loyal customer base, it is expected to unleash greater performance elasticity. For the first time, we gave it an “increased holding” rating. Risks suggest that the duration of the epidemic has seriously exceeded expectations, and that regulations are becoming stricter, etc.