Key points of investment
This Friday (April 28), a GEM listed company, “Century Hengtong”, asked for a quote.
Century Hengtong (301428): The company is a professional information technology service provider that provides user value-added and expansion services to large enterprise customers with many individual users through independent development of technology platforms and service networks. The company achieved operating revenue of 1,018 million yuan/899 million yuan/915 million yuan/915 million yuan respectively in 2020 and -11.70%/1.81% in that order, and the three-year revenue compound annual growth rate of 3.03%; achieved net profit of 77 million yuan/71 million yuan/78 million yuan, YOY was 51.92%/-7.29%/9.18% in that order, and the three-year compound annual growth rate of Fumo's net profit was 15.42%. According to preliminary forecasts, the company expects to achieve net profit of 13.8602 million yuan to 17.0587 million yuan from January to 2023, an increase of 30% to 60% over the same period last year.
Investment highlights: 1. The company has established relatively stable cooperative relationships with well-known downstream enterprises such as China Mobile and Ping An of China. The company's main business can be divided into three service systems: car owner information service, life information service, and business process service. The corresponding business has been recognized by China Mobile, China Ping An, etc., and long-term cooperation has been established: 1) Since its establishment, the company has provided life information services to China Mobile, and has cooperated to create the “Mobile Benefit Life” platform and other products over a long period of time. Currently, China Mobile has become the company's core customer of this business and became the company's largest customer in 2022. During the reporting period, it accounted for 17.06%, 32.23%, and 44.16% of the company's main revenue, respectively. 2) Ping An of China is the main customer of the company's car owner information service business. The two parties have established cooperation in this business since 2017. Ping An of China has been one of the company's top two customers since 2019. During the reporting period, it accounted for 47.06%, 38.21%, and 30.51% of the company's main revenue. The company is also one of the main suppliers of Ping An's car owner information service in China. 3) In addition, the company's business process services have also been recognized by well-known companies such as Tencent and Guizhou Expressway, and stable cooperation has been formed. 2. The company has a certain competitive advantage in terms of after-sales service merchant resources. Since its establishment in 2013, the company has accumulated rich after-sales service resources for telecom operators. At present, it has established cooperation with 31 provincial units across the country, totaling more than 20,000 car owner service providers, forming a large-scale and wide-ranging vehicle owner information service system, which can better support the company's corresponding business development.
Comparison with listed companies in the same industry: The company's main product systems include car owner information services, life information services, and business process services. According to the similarity of business segments, Pingzhi Information, Gold Digger, and New Country were all selected as comparable listed companies of Century Hengtong. Judging from the comparable companies mentioned above, the average revenue size (TTM) of the industry is 3.105 billion yuan, the comparable PE-TTM (arithmetic average) is 39.81 X, and the gross sales margin is 17.68%. In comparison, the company's revenue scale is lower than the industry average, and the gross sales margin is in the high range of the industry.
Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.