Events:
The company released its quarterly report for 2014, with operating income of 107 million in the third quarter, down 6% from the same period last year; net profit belonging to shareholders of the parent company was-5.04 million yuan, down 243% from the same period last year; and basic earnings per share was-0.01 yuan per share. In the first-third quarter, the total operating income was 321 million, down 35.95% from the same period last year; the net profit belonging to the shareholders of the parent company was 23.07 million yuan, down 26.72% from the same period last year; and basic earnings per share was 0.045 yuan per share, down 26.70% from the same period last year.
Summary of the report:
The gross margin expense rate increased in the first three quarters compared with the same period last year. The decrease in operating income and profits was mainly due to the replacement of assets during the reporting period. The comprehensive gross profit margin in the third quarter was 41%, an increase of 2.4 percentage points over the previous year. The sales expense rate, management expense rate and financial expense rate were 17.67%, 15.99% and 14.53% respectively, representing changes of 1.16%,-4.46% and-1.32% respectively over the same period last year. From the beginning of the year to the end of the reporting period, the company's comprehensive gross profit margin was 40.52%, an increase of 9.49 percentage points over the same period last year.
The sales expense rate, management expense rate and financial expense rate were 15.93%, 18.87% and 16.08% respectively, representing increases of 5.51%, 4.54% and 6.61% respectively over the same period last year. The expense rate during the period was 50.88%, an increase of 16.66 percentage points over the previous year.
Internet finance attacks the city and pulls out the stockade, and is optimistic about the model that is beneficial to the four sides. Since the beginning of this year, the company has successively signed digital service platform cooperation agreements with the municipal governments of Zunyi, Linfen and Baoding, targeting small and micro businesses that cannot be covered by large banks. In addition to being unable to withdraw money, the future function of Urban all-in-one Card will completely replace cash and become a safe and reliable physical "currency". On this basis, the company can also engraft merchants, engage in small loans, and develop a series of financial services in the future, such as commercial loans, small loans and so on. Obtain the data assets of small and micro merchants through payment, provide credit inquiry means for small and micro loan services for individuals and small and micro enterprises in the future, and achieve accurate marketing at the same time. We are strongly optimistic about this model.
Profit forecast and investment value: the company's 14-and 15-year EPS is expected to be 0.18,0.31, corresponding to PE of 89X, 52X, maintaining the "overweight" rating.