Event: on March 30, 2016, Yongda Group released its 2015 annual report. According to the annual report, the company's operating income in 2015 was 14.651 billion yuan, down 9.02 percent from the same period last year, while the net profit belonging to shareholders of listed companies was 9.037 billion yuan, an increase of 91.24 percent over the same period last year.
Participation in Fushun Bank brings rich investment returns. The company completed its acquisition of Fushun Bank on October 30, 2015, becoming the largest shareholder of Fushun Bank, bringing an investment income of 73.25 million yuan, accounting for 76.86% of the total profit. The company's business scope is no longer limited to the original traditional switch business, involved in the financial industry, broaden the source of profits.
It is proposed to acquire Haike Finance to create a new situation of Internet finance. The company plans to acquire 100% of Haike Rongtong by issuing shares. Haike Rongtong is mainly engaged in third-party payment business, and carries out Internet lending platform business through its holding subsidiary Zhongxin Financial, and prepares to launch Internet crowdfunding business through wholly-owned subsidiary Zhongxin Public Investment, and plans to set up a joint venture with Haidian State Investment to set up a new company, Haixian Finance, to engage in Internet micro-loan business. After the completion of the acquisition, the layout of the company in the financial field will be extended by commercial banks to third-party payment, online loan platform, crowdfunding and microfinance, so as to achieve a wide-ranging layout in the financial field.
The establishment of a subsidiary Yongda innovation, into the field of direct investment. The company has invested in the establishment of Yongda Innovation Financial Services (Shenzhen) Co., Ltd., a wholly-owned subsidiary in Shenzhen Qianhai Shenzhen-Hong Kong Cooperation Zone. In the future, the direct investment platform will focus on the promising fields of communications and information, intelligent technology, Internet, finance, energy conservation and environmental protection, education, etc., to seek domestic and foreign investment and M & A targets for Yongda Group.
Bid for the target of life insurance, want to join the blue ocean of life insurance. According to the announcement, the company is currently bidding for equity in life insurance companies. If the company succeeds in bidding, it can successfully join the life insurance industry and further consolidate the financial control platform.
The synergy effect of "traditional finance + Internet finance + big data" will ferment. Commercial banks can provide funds storage, credit and innovative financial services for Internet finance, while Internet finance can provide marketing and promotion for traditional financial services represented by commercial banks, and the customer migration between the two will be more frequent. The development of traditional finance and Internet finance not only provides the original data support for the construction of big data platform, but also provides it with application output port to achieve a virtuous circle.
Investment advice: maintain the buy-An investment rating with a 6-month target price of 38.3 yuan. We estimate that the EPS of the company from 2016 to 2018 is 0.49,0.58 and 0.69 yuan respectively.
Risk tips: macro risk, acquisition failure risk, business integration risk