Jingwei Textile Machinery: China Financial Trust Is In The Outbreak Of Its Performance.

2011/1/5 10:20:00 53

Jingwei Textile Machinery In The Trust Performance Of The Outbreak Period

Jingwei Textile Machinery (000666): the financial strength of the subsidiary company is increasing.

Subsidiary

China Financial Trust

Capital strength will be greatly enhanced, and the ability to follow up development will be greatly enhanced.

Jingwei Textile Machinery

Holding 36% China Trust Trust shares and making a joint statement.

At present, China Trust's business is developing rapidly, but its net capital is small.

After the increase and capital increase, the registered capital of the financial trust will reach 1 billion 400 million yuan, which has taken an important step in meeting the net capital regulatory measures.

We judge that in the future, China Trust Trust will also increase net capital through measures such as net profit increase, shareholder capital increase and restructuring of trust business, which will eventually achieve or even exceed the requirements of net capital regulatory measures, and the company's future development potential will be greatly enhanced.

Jingwei Textile machinery is fully capable of participating in the possible future capital increase.

Jingwei Textile Machinery currently has a total assets of about 7 billion yuan, less than 3 billion yuan of net assets, 550 million yuan in cash and 800 million yuan in credit lines, and a large number of subsidiary companies. Therefore, the company will maintain a high degree of certainty in the process of equity investment in the future.

Investment advice:

In view of the

Performance outbreak period

Moreover, as a broad asset management industry, the trust industry should enjoy a higher valuation level.

To maintain Jingwei Textile machinery buying rating, the target price is 20 yuan.