What happened: yesterday, Qudian Inc successfully landed in US stocks, and the share price rose 22% on the first trading day, with a market capitalization of US $9.63 billion.
Qudian Inc went public smoothly, and the shareholders made a considerable profit. Qudian Inc quit the campus loan business and focused on relying on Ant Financial Services Group's traffic portal to provide online lending services. Net profit turned into profit in 2016 and burst in 2017, supporting the stock price. We believe that Qudian Inc will provide considerable investment income for Guosheng Financial Holdings in the fourth quarter. In the 2016 China News, Guosheng Financial Holdings disclosed that it had acquired 15.0883 million shares of Qudian Inc through its foreign currency investment management business platform Huasheng Hong Kong, with a stake of 5% at a price of 375 million yuan. Based on yesterday's closing price, Guosheng Financial Holdings' stake in Qudian Inc has a market capitalization of $480 million, or nearly 3.2 billion yuan, and an investment income of 2.8 billion yuan (the company's annual revenue in 2016 was 1.6 billion yuan).
Set up a number of technology companies to build financial technology in an all-round way. In 2017, the company established Zhuhai Hengqin Jisheng Technology Co., Ltd., relying on it to operate the financial technology sector. At present, Jisheng Technology has started the construction of core teams to promote securities IT system testing and independent R & D platform construction. In addition, the company established Tianjin Guosheng Internet Technology Co., Ltd. and Beijing Guosheng Internet Information Consulting Co., Ltd. in June 2017, engaged in computer network technology, electronic information technology, data processing technology development business and economic and trade consulting and enterprise management consulting business respectively. We believe that the three newly established technology companies will enhance the company's strength in technology finance and help the company develop into an Internet financial control platform.
Divest the main business of cable and focus on finance. The company successfully sold its cable business in June 2017, focusing its resources on finance. We believe that Guosheng Securities will further release its performance after the capital increase, while the prospects for equity investment and financial technology are also better.
It is recommended to also focus on Kunlun Wanwei (still hold a 16.86 per cent stake in Qudian Inc after a gain from the sale of some shares).
Risk tips: market risk / macro risk / policy risk