Investment logic

In the post-market-oriented era of interest rate, private capital has entered the commanding heights of financial strategy; a hundred schools of thought contend with the rise of direct financing; the spring tide of state-owned enterprise reform occurs one after another, and state-owned capital takes the initiative to attack; financial reform is deepened, marketization and internationalization promote the upgrading of the capital market. In finance, a land full of opportunities, the biggest challenge lies in the fierce homogenization competition, and there are two directions for breakthroughs: one is that cross-border finance counterattacks traditional financial giants from the bottom up; the other is that financial control platforms focus on capital integration resources to create strong comprehensive financial services capabilities. At the intersection of these two lines, we found Guosheng Financial Holdings.

Guosheng Financial Control is positioned as an Internet financial control platform, and the core strategy is: through endogenous and epitaxial development, make full use of Internet innovation means, based on the Internet ecosystem, gradually establish a financial service system covering securities, insurance, investment, trust and other business, and finally build the company into a professional, innovative and open Internet financial control platform. The injection of unicorn Internet financial assets by major shareholders (part of the equity of Happy Times) is the development idea of cross-border finance; after the acquisition of Guosheng Securities, the layout insurance and try to control the mature fund license (Guolian an) is the development idea of building a traditional financial control platform.

In terms of the executive power of the grand strategy, we are optimistic about Guosheng Financial Control because we are optimistic about the operating mechanism of the company: through private placement (that is, capital, self-owned capital + industrial capital) to intervene in high-quality targets, and through M & An asset extension expansion, release the synergy between the high-quality target and the financial control platform Rely on private equity to find high-quality companies, through the investment platform to achieve investment income, or through the injection of listed company platform to achieve exit. The layout of financial technology is efficient, which demonstrates the vitality and strong development aspirations of the company.

Investment advice: the company is only in the initial stage of the financial control platform, and the company is expected to speed up its layout in the next two years, with both extension growth and extension expansion, and the private placement background will help the financial control strategy to land.

Maintain Guosheng Holdings'"buy" rating, with a six-month target price of 20 yuan.

Risk hint: the progress of financial control layout may not be as expected; the risk of securities business performance fluctuation is greater.