Aijian Group (600643): Trust-Driven Growth Leasing Improves Territory

Aijian Group (600643): Trust-Driven Growth Leasing Improves Territory

Key points of investment: Junyao takes over, and established financial groups rejuvenate: Aijian Group started as the first private enterprise in mainland China and has a rich history.

Relatively speaking, the average annual compound growth rates of total operating income and net profit attributable to mothers during 2015-2018 were 24.

37% and 22.

61% were significantly pre-existing.

At present, the company has gradually developed into a comprehensive financial service platform covering trust, leasing, securities, asset management and other businesses.

The strength of major shareholders has been strengthened, and continuous holdings have shown confidence: Junyao Group has broken through its strengths and has five major business sectors: finance, aviation, consumer, education and science and technology.Form industry-finance integration and start joint development.

In addition, Junyao Group has increased its holdings in the secondary market in the past two years, and its shareholding in the company has increased to 28.

34%, showing business confidence.

Trusts “pay by volume” to drive high growth performance: Aijian Trust is the core driving force for the company’s performance growth, and its profit contribution rate in 2018 has increased to more than 90%.

Its development strategy can be summarized as “replenishing price with quantity”, and the scale of reorganized trust assets has continued to grow rapidly, from 267 in 2013.

Ten billion surged to 2776 in 2017.杭州桑拿

US $ 3.5 billion, showing industry-leading expansion capabilities; the return on consolidated trusts has also fallen accordingly, from 1 in 2013.

85% recognize 0 in 2017.

84%.

The “price-for-quantity” model has still brought high performance growth in recent years, but under the general trend of industry active management reform, the “de-channelization” of the business structure will determine the continuity of the company ‘s high performance growth rate.

Divided into Huarui Leasing, the leasing layout is gradually improved: Aijian Leasing has achieved rapid development through the expansion of the industry in 2014-2016. During the period, the average annual compounding of operating income and net profit was 120.

62% and 127.

54%, but under the influence of stricter regulations and rising credit risk in the real economy in 2017-2018, performance began to show negative growth.

However, in 2018, the company was transferred to Huarui Leasing to complete the first resource integration with major shareholders. It is expected that the company will develop synergistically and improve its profit contribution after improving the leasing landscape.

Profit forecast and investment advice: The company’s operating income is expected to be 32 in 2019-2021.

2.7 billion, 39.

8 billion, 50.

73 megabytes, with a growth rate of 21 each year.

59%, 23.

33%, 27.

47%; net profit attributable to mothers is 13.

2 billion, 15.

2.7 billion, 17.

USD 9.1 billion, with annual growth rates of 14.

02%, 15.

67%, 17.

29%; corresponding EPS are 0.

81 yuan, 0.

94 yuan, 1.

10 yuan.

Get the first target price of 2019 by PB estimation method13.

82 yuan, covering for the first time, give “overweight” rating.

Risk factors: The growth rate of trust loans is lower than expected; the progress of active management transformation is lower than expected