AVIC Capital (600705): Leasing Business Expansion Drives Revenue Growth, Pays Attention to Progress of Production Investment Platform

AVIC Capital (600705): Leasing Business Expansion Drives Revenue Growth, Pays Attention to Progress of Production Investment Platform

AVIC Capital’s 1Q19 results were in line with expectations.
Results for the first quarter of 19: Total operating income 39.

50,000 yuan, an increase of 26 in ten years.

5%; net profit attributable to mother 7.

9 trillion, a reduction of 0 a year.

8% (net profit after deducting non-attribution to mothers increased by 5% per year); ROE remained at 2 during the reporting period.


Total assets increased by 5% from the beginning of the year to 31.55 million yuan, and net assets attributable to mothers increased by 4 from the beginning of the year.

3% to 289 ppm with +0 leverage.

1x to 10.


Development Trends Leasing business expansion is the main driver of revenue growth.

1) Leasing-based operating income increased by 42% to 2.1 billion per year (gross revenue increased by 43% to 9 after considering operating costs.


Corresponding current assets and long-term receivables (mainly including financial lease receivables) due within one year increased by 30% per annum and remained flat at US $ 140.6 billion; 2) Net income from fees and commissions increased by 12% to 9.

9 trillion, or mainly due to the steady increase in trust business, securities brokerage business increased due to market recovery; 3) investment income (investment income + fair value changes + asset 杭州桑拿 disposal income) increased by 71% to 4.

100 million, mainly benefited from the recovery and recovery of investment assets brought about by the recovery of the secondary market.

The increase in management expenses and the increase in asset impairment have dragged on the improvement in profit growth.

1) The company management fee increased by 189% to 4 in ten years.

80,000 yuan, corresponding to the management fee rate (proportion of total revenue) increased by 4ppt to 12%; 2) Impairment losses increased by 76% to 1.

100 million US dollars, or mainly due to the expansion of the leasing business, the overall asset quality remained stable.

Dating war investment increased capital, capital strength and business resources combined.

Five strategic investors (China Life Insurance / Guotong Xinhang Property Investment / Shanghai International / Shanghai Shangguo Investment Management / Shanghai State-owned Enterprise Reform and Development Equity Fund) contributed a total of 9.5 billion yuan, accounting for AVIC’s registered capital.


Strengthened capital strength, expansion of business cooperation, and advancement of the construction of production and investment platforms provide momentum for the company’s subsequent growth.

Earnings forecast We maintain our 2019 / 20e earnings forecast36.

0 ppm / 41.

5 trillion is unchanged.

It is estimated and recommended that the company currently can sustain 14 times P / E, 1 for 19 years.

7 times P / B.

Maintain recommended level and target price 6.

9 yuan, corresponding to 19 times 17 times P / E, 2.

0 times P / B, compared with current expectations of 19%.

The quality of risk assets was lower than expected; the progress of the industrial investment platform exceeded expectations.