The growth rate of the main water industry slows down, and venture capital drives the overall income. The year-on-year growth rate of the main business income of Qianjiang water conservancy and water conservancy was slightly weak, falling from 8.03% in 2013 to-0.57% in the first half of 2015, but the company's stake in Paradise Silicon Valley brought it a larger return on investment. In the first half of 2015, Qianjiang Water Conservancy's investment income in Paradise Silicon Valley reached 18.7963 million yuan, far exceeding Qianjiang Water Conservancy's operating profit of 4.0065 million yuan in the same period.
The state encourages venture capital, and the prospect of the venture capital industry is bright. From the end of 2014 to 2015, the state has formulated various policies to encourage venture capital and improve the environment for venture capital. In the first three quarters of 2015, China's venture capital investment exceeded 16 billion US dollars, and the scale is expected to continue to expand in the future.
There are many entrepreneurial projects in Paradise Silicon Valley, and the development trend is good. As of June 2015, there were 138 funds under Paradise Silicon Valley, with actual capital of more than 10 billion yuan, a total of 194 investment and asset management projects, and assets under management of more than 20 billion yuan. In 2014, the net profit of Paradise Silicon Valley was 7.7776 million yuan.
IPO restart and strategic emerging industry board plan together, good venture capital plate. The restart of IPO and the proposed launch of the strategic emerging industries board will broaden the exit channels of venture capital, rich returns on venture capital investment, venture capital companies and listed companies that participate in venture capital companies will welcome the spring breeze.
Investment advice: buy-An investment rating, 6-month target price of 24 yuan. We estimate that the EPS of the company from 2015 to 2017 is 0.07,0.25,0.29 yuan respectively.
Risk hint: the decline of water business is more than expected, and the return of venture capital investment is lower than expected.