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Dafy Holdings(01826)Behind the mid-term net profit of 2.4 million, there is a shortfall and a large

Date: 2018-08-30

In the first four months of 2018, Dafei Holdings (01826) was overwhelming. From the beginning of 2018 to April 16, Dafei Holdings soared sharply, with a cumulative increase of 213%. All of this stems from the market's good expectation of Dafei's financial asset injection.

However, Dafei's latest performance in the first half of 2018 is still dominated by the construction industry, and the financial business has not yet been reflected.

Behind the mid-term net profit of 2.4 million of Dafei Holdings (01826) is the exhaustion of profits and the injection of huge assets.

(Market source: Fortune Securities)

After May, the share price of Dafei Holdings began to decline all the way. According to Zhitong Finance and Economics APP, its stock price is not going well. First, the overall market of Hong Kong stocks has weakened in the past few months. Second, Internet finance is moving from barbarism to rationality, and the market is slightly pessimistic about the mood of mutual fund enterprises.

Zhitong Finance and Economics APP has noticed that more and more shareholders are paying attention to Dafei in the snowball recently. Everyone is waiting for this important semi-annual report. They are still looking forward to the introduction of financial technology to improve Dafei's performance.

The first half of the year's earnings showed that Dafei's revenue increased by 14.4% year-on-year, but its net profit declined year-on-year, mainly because the overall situation of Hong Kong's construction industry is not optimistic. In addition, in order to occupy a larger market, the company adopted a lower pricing strategy, which led to a decrease in gross profit rate from 9% in the same period last year to 6.2%.

After the expected half-year report came out, the market sentiment was not negative, although there was only a net profit of HK$2.4 million. As of the early closing date of August 30, it was HK$0.64, up 3.23% against the trend.

This seems to imply that negative sentiment has been fully released and there is room for imagination about future performance.

In fact, looking back on a series of measures taken by Dafei since this year, from May this year, Dafei intends to acquire 30% of the controlling shareholder Gao Yunhong's car rental business. Then in early August, the company acquired 51% of the controlling shareholder Gao Yunhong through affiliated Shanghai Feiyu. Now the company is jointly owned by Dafei Holdings and Gao Yunhong.

Then in mid-August, Dafei issued a notice announcing the appointment of a new financial officer. It is clear that Dafei's low profit level will become history.

It can be inferred that the two main businesses of Dafei in the future include: car rental and financial technology, which are also the two most promising businesses in the field of Internet finance.

As for the automobile finance business, the high gross profit rate has been reflected in the reports of listed companies of major automobile dealers in Hong Kong stock market. This is also the main reason why in recent years, both the whole automobile enterprise and the dealer enterprise have made great efforts to lay out the business.

Even in today's headlines with huge traffic of '700 million + users', the most efficient way to realize traffic is consumer finance business. Some practitioners speculate that today's headline auto finance business may start with the financing lease model.

According to App of Zhitong Finance and Economics, Magic Car is a brand of new automobile experience created by Dafei Group's companies in the development of financial leasing. Magic Car takes 'rent for purchase' as its main business model, aiming at providing consumers with high-quality, one-stop automobile financing leasing services through differentiated products and experiences, and creating the most influential automobile financing leasing in China. Brand.

It is worth mentioning that Magic Car now has the trump card product 'Magic Go'. 'Magic go' advocates 'no down payment'. Consumers pay as little as 588 yuan a month, which can be a step faster in learning, work and family life, and achieve a promising future for every young person!

It is believed that with the strong resource advantages of Dafei and its unique product model, Magic Car will set off a new industrial trend in the industry.

With regard to financial technology business, Dafei Financial Information Services Co., Ltd. of Shangrao City, which Dafei recently acquired, is engaged in business scope, including financial information consulting service, computer software and hardware technology development, business e-commerce, data analysis and processing, network platform technology development and technical consulting.

Shangrao Dafei Financial Information Service Company is also owned by Gao Yunhong, the controlling shareholder of Dafei. As a leading platform of consumer finance, financial technology has become the main innovation of Dafei Group.

Just as Luxin, president and CEO of Dafei Technologies Holdings, said publicly before, in the cold winter of Internet finance, only enterprises with weak wind control ability and inadequate financial technological innovation ability in the past reckless era have frozen to death. Only by embracing supervision, adhering to the road of compliance, focusing on risk management, can we survive the winter steadily.

In addition, Dafei has won many awards from the recently held second National Financial Science and Technology Summit Forum 2018, which also proves its bold innovation in the field of financial science and technology.

In fact, compared with the United States, China's Internet finance industry is larger, and in some areas of science and technology such as payment and disposal capacity is also more advanced. Whether from the perspective of Inclusive Finance or supporting the real economy, Internet finance still has huge room for growth, and its development will promote the overall transformation of the industry to a technology-driven model. With the introduction of its main business, the future performance of Dafei Holdings, which has been deeply cultivated in the field of Internet finance for many years, is bound to be surprising.

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