The company is the target of A-share scarce distressed asset management: Hyde shares is one of the 59 local AMC companies in China, and it is the only A-share listed company whose main business is distressed asset management. In recent years, the company's non-performing assets management business has achieved strong growth. In 2022, the company achieved operating income of 1.063 billion yuan, an increase of 59.46% over the same period last year, and a net profit of 700 million yuan, an increase of 82.63% over the same period last year. In the first half of 2023, the company realized a net profit of 515 million yuan, an increase of 59.45% over the same period last year.

Based on the distressed asset management business, create a new performance growth point: relying on the industrial background advantages of the parent company and the rich experience of its own asset management business, the company continues to lay out new areas on the basis of distressed asset management business. create individual loan non-performing asset management and new energy storage energy two major performance growth points.

With the layout of personal distressed assets business, the policy may be promising: the company was approved to carry out nationwide personal non-performing loan acquisition and disposal business in July 2021, and in August 2022 increased its capital by RMB 50 million to Tibet Junfeng Digital Technology Co., Ltd., which has a full process system of individual loan non-performing batch litigation, and became a 51% controlling shareholder. At present, the company mainly deals with the problem of "large number of debtors + small amount of individual loan non-performing assets" in the way of "big data + AI", and adopts the scheme of "science and technology + justice" to dispose of individual loan non-performing assets, and its comprehensive strength occupies a leading position in the field of individual loan judicial disposal. In the future, the company is expected to seize the dividend period of individual loan non-performing assets and cultivate new performance growth points.

Relying on the group's industrial background, the layout of the all-vanadium flow energy storage field: in August 2022, the company invested 490 million yuan and Yongtai Energy, a listed company owned by the parent company Yongtai Group, jointly established Beijing Detai Energy Storage Technology Co., Ltd., accounting for 49% of the registered capital. and plans to use the company as a platform to focus on investing in the field of all-vanadium flow energy storage. At present, Beijing Detai has successively carried out a series of projects such as increasing capital from new energy storage companies, acquiring vanadium mineral resources companies, and purchasing energy storage patented technology, initially realizing the layout of the whole industry chain in the field of all-vanadium liquid flow energy storage. The company expects to gradually generate revenue in the second half of 2024.

Investment suggestion: we estimate that the company's operating income in 2023, 2024 and 2025 will be 14.75,34.91 and 6.868 billion yuan respectively, with year-on-year growth rates of 38.7%, 136.7% and 96.7% respectively, and net profit of 10.15,14.25 and 2.188 billion yuan respectively, with year-on-year growth rates of 45.0%, 40.3% and 53.6% respectively. The PE of the company's current stock price in 2023, 2024 and 2025 is 15.5x, 11.0x and 7.2x, respectively. Coverage for the first time, giving a "overweight" rating.

Risk tips: the development of non-performing assets industry is not as expected; the growth rate of individual loan non-performing assets business is not as expected; the progress of all-vanadium liquid flow energy storage project is not as expected.