First, the company is a leading integrated marketing communication service provider in China, which has formed a brand communication service model with marketing strategy and creative content as the core and "traditional communication channel + digital communication channel" as the channel. The company has 2 branches, 9 wholly-owned or holding subsidiaries and 1 shareholding company. The company has been selected as one of the TOP companies selected by China International Public Relations Association for eight consecutive years. In August 2015 and February 2016, Internet Weekly released Internet + PR Communication Industry TOP100 and 2015 PR PR Communication Top 50, the company ranked 7th and 5th respectively. The continuous expansion of high-quality customer resources has laid a good foundation for the further development of the company. The company serves customers such as Hewlett-Packard, Procter & Gamble Co, Fuji Xerox, Dell, Samsung, Huawei, Chow Tai Fook Jewellery, Shell, Baidu, Inc., Master Kang, Ping an Finance, Changan Ford, Dongfeng Nissan, Changan Mazda, Shanghai Volkswagen, Cheetah Automobile and other world top 500 and well-known enterprises at home and abroad. In the first half of 2016, automotive customers accounted for 69.9% of total revenue, Internet information technology customers accounted for 9.4%, manufacturing customers accounted for 9.3%, and FMCG customers accounted for 3.8%.
Second, the growth of the company's revenue and net profit is stable. Total income: 267 million, 267 million (+ 0.02%), 391 million (+ 46.3%) and 225 million (+ 15.3%), respectively, from 2013 to 2015 and the first half of 2016; net profit attributable to the parent company: 12.53 million, 8.14 million (- 35.0%), 53.55 million (+ 557.7%) and 26.12 million (- 2.4%), respectively. Gross profit margin: 48.5%, 50.6%, 47.5% and 44.0% from 2013 to 2015 and the first half of 2016, respectively. The net interest rates belonging to the parent company from 2013 to 2015 and the first half of 2016 were 4.7%, 3.0%, 13.7% and 11.6%, respectively. The company expects operating income for the whole year of 2016 to be 4.56-504 million, an increase of 16.7%-29.0% over the same period last year; and the net profit attributed to the parent company is expected to be 5618-60.11 million yuan, an increase of 4.9%-12.3% over the same period last year. It is estimated that the net profit in the fourth quarter is 0.29 to 32 million, a year-on-year change of-11.3% and 0.9%.
Third, the company's main business is divided into two categories: perennial consultancy service and project service according to profit model, and traditional marketing and digital marketing according to communication channels. 1. According to the profit model, the proportion of project services to total operating income from 2013 to 2015 and the first half of 2016 is 86.4%, 85.9%, 86.9% and 86.6%, respectively. 2. According to communication channels, digital marketing revenue accounted for 12.0%, 15.3%, 30.2% and 60.1% of total business income from 2013 to 2015 and the first half of 2016, respectively, maintaining rapid growth.
Fourth, profit forecast and valuation: the company's net profit from 2017 to 2018 is expected to be 70 million yuan and 82 million yuan respectively, and the corresponding EPS is 0.97 yuan and 1.14 yuan respectively (considering new equity dilution).
Fifth, risk hint: customer industry concentration risk; industry competition aggravates risk; brain drain risk