Abstract
From the perspective of business growth in the financial sector and the policy orientation of the service entity economy, we are optimistic about the wealth management business and the integrated financial services for enterprises. This paper analyzes the competitive advantages of Zhejiang Oriental compared with other financial control platforms from the point of view of the volume of private wealth in Zhejiang, the transformation process of financial control in Zhejiang Oriental, and the advantages of corporate incentive system.
Main points:
Located in the demonstration area of common prosperity in Zhejiang Province, there is a huge space for wealth management. Zhejiang Province has a relatively developed degree of economic development, and the private economy is very dynamic, which provides an ideal customer base and enterprise customer resources for wealth management, equity investment and financing. Zhejiang Province is in a superior policy time window, the company, as a provincial financial controller, can seize the opportunity to become stronger, better and bigger to support common prosperity. The huge private wealth provides a broad space for the company to carry out wealth management business.
Integrated financial services platform to help regional industrial transformation and upgrading after the completion of the reorganization in 2017, the company has obtained three valuable financial licenses of trust, futures and insurance on the basis of the original financial leasing and private equity business. transformed into the province's only state-owned listed financial control platform.
The company provides customers with multi-level and omni-directional asset management services through financial and investment subsidiaries such as Zhejiang Gold Trust, Earth Futures, China and Korea Life Insurance, Guojin Leasing, Oriental Industry and Finance, Prajna Wealth and Oriental Jiafu. In addition, the company also holds shares in Yongan Futures, Huaan Securities, Silicon Valley Paradise and other enterprises.
A number of financial licenses give Zhejiang Oriental a wealth of financial instruments, which can serve the whole life cycle of production and manufacturing and meet most of the financial needs of the whole process of enterprise growth. Zhejiang Dongfang can give full play to the resource coordination function of comprehensive financial services, improve the quality and efficiency of financial services, and take the lead in implementing the national strategy of integration in the Yangtze River Delta.
The market-oriented incentive mechanism encourages business innovation and is the core driver for the rapid development of enterprises.
Zhejiang Dongfang adheres to the market-oriented employment mechanism, and the headquarters fully ensures the autonomy and flexibility of the financial enterprises participating in the holding, and the incentive mechanism for front-line business personnel is more competitive than that of the same industry. The superior employment system provides a strong guarantee for enterprises to train and retain talents, and the business development and innovation ability of the talent team continues to improve.
Relying on the fixed expansion scale, the rights and interests multiplier to enlarge the business advantage, the profit space is broad.
This increase lays a foundation for the company's Zhejiang Gold Trust to expand its business scale and speed up its business transformation, which will help to meet the net capital requirements of the regulatory authorities of the trust industry, and contribute to the transformation and development of trust business and enhance its competitive strength. With the further enhancement of its influence, the efficiency of decision-making will also be improved. In the future, it will give better play to the advantages of license plate, shareholder resources and the location advantage of the integration of the Yangtze River Delta.
On the whole, the company's equity multiplier has been less than 3 times over the past 10 years, and it is about 2.2 times in 2021. Compared with the average of 5.83 times of the integrated financial platform, Zhejiang Oriental's leverage ratio has a lot of room for improvement, and the equity multiplier magnifies the business advantage. there is a lot of room for profit.
Investment suggestion
Considering the steady expansion of the company's comprehensive financial territory, it is expected to achieve the strategic goal of a first-class state-owned listed financial control group with "big asset management" as the core and build a licensed financial control platform in the future. we expect the company to achieve operating income of 194.37, 204.09 and 22.042 billion yuan respectively from 2022 to 2024, an increase of 10.00%, 5.00% and 8.00% respectively over the same period last year. From 2022 to 2024, the net profit of returning to the mother was 7.19,8.08 and 1.072 billion yuan respectively, up 9.55%, 12.38% and 32.74% respectively over the same period last year. In 2022-2024, the EPS was 0.21,0.24,0.31 yuan (in terms of fixed share capital), and the PE corresponding to the closing price of 3.91 yuan on July 7, 2022 was 15.76X, 14.02X and 10.56X times, respectively.
Zhejiang Oriental's latest PB is about 0.85 times, with a high performance-to-price ratio. As the financial control platform involves a large number of business sectors, according to the main business attributes, the segment valuation refers to the method of comparable companies in the industry. The static market capitalization of Zhejiang Gold Trust, China and Korea Life Insurance, Land Futures + 11.43% Yongan Futures, Guojin Leasing, Prajna Wealth and Oriental Industrial Finance adds up to about 17.193 billion yuan, corresponding to the target price of 5.03 yuan per share (3.415 billion shares after fixed increase) For the first time, it covers giving a "buy rating".
Risk hint
Macro-economy: at present, it is in the downward stage of the economic cycle, superimposing the repeated epidemic situation and the uncertainty of the international situation, the company's business situation may be disturbed to a certain extent.
In terms of group strategy: the "trial measures for Supervision and Management of Financial holding companies" stipulates both asset scale and paid-in registered capital for enterprises applying for financial control licenses, and there is a certain gap between the company's asset scale and registered capital and regulatory requirements. The company's strategic goal of building a first-class state-owned listed financial control group with "big asset management" as the core may slow down.