Monarch Liu Xinqi, etc .: AVIC Capital Pilots to Enhance Strength and Invest in New Era

Monarch Liu Xinqi, etc .: AVIC Capital Pilots to Enhance Strength and Invest in New Era

[Monarch Non-Bank Liu Xinqi Team]Leading the 佛山桑拿网 battle to enhance capital strength, industry investment enters a new era-AVIC Capital (600705) Annual Report of 17 Years maintains an “overweight” rating with a target price of 9.

48 yuan.

The company’s net profit for 2017 was 27.

8.4 billion, +19.

8%, return on equity 12.

3%, previously + 156bps, in line with our expectations, intends to allocate 0 for every 10 shares.

55 yuan.

The appointment of strategic investors will further enhance the company’s capital strength. The company strives to increase industrial investment around military-civilian integration. A two-way breakthrough on the capital side and the asset side will help continuous growth in performance and maintain EPS 0 in 2018-20.

40/0.

47/0.

55 yuan, maintaining a target price of 9.

48 yuan, corresponding to 18P / E 24X, increased holdings.

  Trust and leasing maintained high growth, and securities and finance companies improved.

1) 17-year net profit of AVIC Trust16.

USD 300 million, + 25% a year, trust management scale reached USD 648.9 billion, + 37% compared with the beginning of the year, of which the proportion of collective trusts increased slightly to 53% (52% at the end of 16), and the proportion of active management was higher than the industry averageThe impact of industry de-channels on company performance is extremely limited.

2) 17-year net profit of AVIC Leasing10.

2 ppm, one year + 28%, the interest rate spread is stable and the total asset size has maintained rapid growth. It is optimistic that the 18-year performance will continue to grow.

3) Entrusted by the brokerage and capital intermediary business, the net profit of AVIC Securities decreased by 20% in 17 years, the investment banking business achieved rapid growth, and securities underwriting income increased by + 51%; 4) Due to the narrowing of interest margin, the financial company’sThe profit margin is -4%, and the expansion of the asset base will drive 18-year performance improvement.

  Taking the initiative to enhance capital strength, industrial investment has entered a new era.

1) AVIC, a subsidiary of the company, intends to increase its capital and expand its strategic investors, with a scale of up to 11 billion U.S. dollars. The pilot will comprehensively enhance the capital strength of the company’s financial sub-sectors, and at the same time provide a basis for the company’s production, finance, and financing.

2) The pace of joint investment between the company and the group has accelerated significantly. In February 18, the company and AVIC and AVIC jointly invested to establish the Rongfu Aviation Industry Fund Management Company, which mainly invested in the aviation-military-military integration industry project. Under the background of deepening military-civilian integration,The company’s strong shareholder advantage is expected to take the lead in areas such as military industry investment and industrial fund management.

  Welcome to contact: Liu Xinqi 18621898966 / Super Super 18601923202 / Qi Ruijuan 18610093755 / Yan Zheming 15510104643 / Zeng Guangrong 15122409675