Core ideas:
The company released the mid-2021 report: 2021H1 realized revenue of 1.66 billion yuan, + 2.2% year-on-year; net profit of 246 million yuan,-42.9%; and deduction of non-return net profit of 223 million yuan,-44.33% of the same period last year. Specifically: (1) the revenue of this part is 317 million yuan,-35% compared with the same period last year; the total income of the main brand authorization and integrated services business is 284 million yuan,-37.5% compared with the same period last year; and the net profit of this part is 190 million yuan,-49.5% year-on-year. (2) the revenue of time interconnection is 1.344 billion yuan, + 18% compared with the same period last year, and the net profit is 52 million yuan, + 1.7% compared with the same period last year.
The net interest rate fell and the operating cash flow was under pressure. (1) the company's net interest rate in the first half of 2021 was 14.7%, year-on-year-11.7pp. (2) the net operating cash flow in the first half of 2021 was-265 million yuan, compared with-26 million yuan in the same period last year.
GMV maintains a high growth rate, and Pinduoduo is the fastest-growing channel, actively laying out content channels.
The company achieved 19.103 billion yuan in GMV in the first half of 2021, + 32.9% compared with the same period last year. From a platform-by-platform point of view, the GMV of BABA, Pinduoduo, JD.com and Vipshop Holdings Limited increased by 3.7%, 115.9%, 39.4% and 40.9% respectively over the same period last year. Pinduoduo is still the fastest growing channel, while the GMV of Douyin & Kuaishou Technology platform reached 415 million yuan in the first half of the year, accounting for 2.17%. The company complies with the online diversion rules and focuses on the market opportunity layout of emerging content channels.
The company issued the 2021 equity incentive plan, which intends to grant 40 million stock options to the incentive object, accounting for about 1.63% of the company's total share capital, with an exercise price of 7.09 yuan per share. The two performance assessment targets are based on revenue in 2020, with revenue growth rates of not less than 15% in 2021 and no less than 30% in 2022.
Profit forecast and investment advice. It is estimated that the company's 21-23-year net profit will be 11.5 billion yuan per share, maintaining the previous valuation logic, corresponding to a reasonable value of 9.26 yuan per share, and maintaining a "buy" rating.
Risk tips: brand GMV development may not meet expectations; overall revenue growth of e-commerce platform may not meet expectations; time interconnection operation may not meet expectations.