This report is read as follows:

Sichuan Shuangma buyback shares because of the confidence in the sustained and stable development of the company in the future and the recognition of internal value. Buyback shows confidence, private equity business accelerated, optimistic about future performance growth.

Events:

On October 24th, Sichuan Shuangma announced that based on its confidence in the company's sustained and stable development in the future and recognition of its internal value, the company intends to buy back the company's shares at an amount of not less than 50 million yuan (inclusive) and no more than 100 million yuan (inclusive), and the repurchase price does not exceed 22 yuan per share.

Comments:

Maintain the "overweight" rating, maintain the target price of 33.16 yuan, 23 years 16xP/E. The higher-than-expected fundraising of the second phase of the fund and the listing of the projects invested in the first phase of the fund are expected to promote the profit growth of the company, maintaining the annual net profit forecast of 23-24-25 at RMB 100 million on 16-21-26, corresponding to EPS of RMB 2.11exp. Maintain the "overweight" rating and maintain the target price of 33.16 yuan, corresponding to 23-year 16xP/E.

Buyback is due to the confidence in the sustained and stable development of the company in the future and the recognition of internal value. Based on the confidence in the sustained and stable development of the company in the future and the recognition of internal value, in order to safeguard the interests of investors and enhance investor confidence, combined with the development prospects and financial situation of the company's main business, the company intends to use its own funds to buy back some of the company's shares in the form of centralized bidding transactions, which reflects the company's optimistic expectations of its own business prospects.

The repurchase amount is 50 million-100 million yuan, and the repurchase price is capped at 22 yuan per share. According to the upper limit of the total repurchase capital of 100 million yuan and the price ceiling of 22 yuan per share, it is estimated that the number of repurchased shares is about 4.5455 million shares, accounting for about 0.60% of the company's current total share capital; according to the lower limit of the total repurchase amount of 50 million yuan and the upper limit of the repurchase share price of 22 yuan per share, it is estimated that the number of repurchased shares is about 2.2727 million shares, accounting for about 0.3% of the company's current total share capital.

Buyback shows confidence, the acceleration of private equity business, optimistic about future performance growth: repurchase shares will be used in employee incentive programs, through the establishment of incentive and restraint mechanisms, can ensure the company's long-term steady development, the company's value continues to improve. In terms of the company's business, the company issued a notice on the new partners of the harmonious green industry fund in May 2023, saying that Pujiang County Equity Investment Management Co., Ltd., as a new partner, increased its capital to the harmonious green industry fund by 500 million yuan. the total contribution of the fund increased to 5.15 billion yuan. With the addition of new partners, the fund subscription has reached 68.67% of the total target subscription, and is expected to be completed by the end of the year. With the gradual withdrawal of the old fund and the acceleration of new fund raising, we are optimistic that the acceleration of the company's private equity business will lead to performance growth in 2023.

Risk hints: large fluctuations in the capital market; deterioration of the equity investment environment.