Xiamen Xinda achieved steady development in 2015. The company develops diversified business, while operating electronic information, supply chain, real estate, financial services. In 2015, the company achieved operating income of 29.3 billion yuan, an increase of 11% over the same period last year. In 2015, the company's commercial trade business in bulk trade, automobile sales and services reached 28.2 billion yuan, accounting for 96%. Due to the macroeconomic downturn, the company's homing net profit fell 23% in the first quarter of 2016 compared with the same period last year (unless otherwise noted, the report data are from company announcements and WIND).
The financial business will bring new profit points in the future. Since 2015, the company has promoted the financial business related to supply chain and optoelectronic business, established Xiamen Sanan Xinda Financial Leasing Co., Ltd. and Dashangdao Commodity Trading Market Co., Ltd., and increased capital to Shenzhen Maike Financial Services Co., Ltd., by increasing the type and shareholding ratio of financial assets, enhance the equity concentration of financial assets and open up new profit growth points.
Build a commodity e-commerce platform to achieve resource integration. In March 2016, the company announced plans to invest 150 million yuan to set up a third-party commodity e-commerce platform, Dashangdao, with a 15% stake. The shareholders of Dashang Road include government funds, logistics warehousing enterprises and other leading enterprises in other industries, and the diversification of ownership structure provides a guarantee for the stability of the platform. In the future, Big Business Road will start from the supply side and consumer side to achieve resource integration, efficiency improvement and cost reduction, using online and offline integration to create a high-security third-party commodity e-commerce platform.
Innovate the trade mode and expand the supply chain business. In April 2015, the company announced that it would increase the capital of Shenzhen Maike Financial Services Company by 200 million yuan. After the completion of the capital increase and share expansion, the registered capital of the financial services company will increase to 700 million yuan, and the company will hold 28.6% of the equity. Shenzhen Maike has brought 6.29 million yuan in profits for the company in 2015, and will promote the development of the company's supply chain business through innovative trade models in the future. At the same time, the company and Shenzhen Maike shareholder Xi'an Maike have a broad trading customer base, and in the future they may jointly provide customers with innovative financial services to achieve the integration of shareholder advantage resources and the improvement of profitability.
Develop financial leasing to enhance profitability. In March 2015, the company announced that it had invested 250 million yuan to jointly invest in the establishment of Xiamen Sanan Xinda Financial Leasing Co., Ltd. Sananxinda mainly has three business models: direct financial leasing, after-sale leasing and financing operating leasing. In 2015, Sananxinda has brought a profit of 11.32 million yuan for the company. In the first quarter of 2016, the balance of national financial leasing contracts increased by 1.8% compared with the end of last year, and by 32% compared with the first quarter of 2015. Financial leasing will return to the track of rapid development with the end of the national industry risk survey, and the total business volume is expected to exceed 5 trillion yuan in 2016. In the future, Sananxinda will take advantage of the rapid development of the leasing industry to enhance the profitability of Xiamen Cinda.
Rely on the advantages of shareholders to achieve business complementarity. Xiamen Xinda is backed by Xiamen SASAC, and the actual control is Xiamen International Trade Holdings, which is the investment management platform for commercial and trade enterprises of Xiamen State-owned assets Supervision and Administration Commission. Benefiting from the reform of state-owned enterprises and the development of mixed ownership economy, Xiamen Cinda may have the opportunity to complement each other with companies in electronics, commerce, supply chain and finance under Xiamen State-owned assets Supervision and Administration Commission in the future.
Investment suggestion: buy-An investment rating, the total net profit of the company's business from 2016 to 2018 is expected to be 218 million yuan, 330 million yuan, 395 million yuan, EPS is 0.54,0.82,0.97 yuan. The target price for 6 months is 19.56 yuan.
Risk tips: macro risk, credit risk, business risk