海联金汇(002537.CN)

Qingdao Haili Metal One:Step in Internet Finance with UMP

时间:16-02-17 00:00    来源:兴业证券

Company Profile

Qingdao Haili Metal One Company Limited manufactures and sells stampingsheet-metal products and micromotor parts. The Company's main products areappliances parts, auto parts, micromotor and electric motor parts.

Eventn

Qingdao Haili Metal One Co., Ltd. was going to issue 196 million shares to ChinaMobile, China UMS and BOSHENG Advanced Technology for 91.56% stakes they heldin Union Mobile Pay, a leading mobile information service, mobile communication feesettlement service and third-party payment service provider in China. Another 147million shares would be privately offered in the same plan to raise CNY 2.28 billion.

Comment

Qingdao Haili Metal One Co., Ltd. went public on SME board as a home appliancecomponent manufacturer in 2011. Then it successfully transferred into an autocompany with capacity of producing new energy vehicles and parts through conductingseries of M&As in the year of 2012, 2013 and 2015. Auto business currently contributed64.25% of the Company’s revenue and only 25.82% of its profits came from sales ofhome appliance components, dropping from 85.9%.

Facing macro-economic slowdown and intensified competition on both homeappliances and auto markets, Qingdao Haili Metal One Co., Ltd is launching anothertransformation to seek for opportunities in Internet finance.

Union Mobile Pay was founded in 2003 by China Mobile (20%), China UMS (20%) andBOSHENG Advanced Technology (60%) with three licenses issued by regulatingauthorities (internet pay, mobile pay and acquirer). There are only 24 paymentcompanies holding all the three qualifications in China. In addition, CSRC and FECBallow UMP to operate fund sales settlement business and cross-border paymentbusiness. Union Mobile Pay promised to made no less than CNY 221 million in 2016,CNY 264 million in 2017 and CNY 322 million in 2018 (net profit) after this transaction.

Earnings Forecast and Investment Recommendations: We made EPS forecast forthe Company at CNY 0.49 in 2016 and CNY 0.65 in 2017, implying 34x/26x PE.Considering unique advantage of the target company presents strong growth potential,we gave OUTPERFORM rating for Qingdao Haili Metal One.

Potential Risks: supervision risk, management risk, policy risk, market risk.