The GMV of the company's Su M3m quarter] totaled 5.77 billion yuan, an increase of 54.2% over the same period last year, of which 59% came from proprietary platforms, 27.3% from third-party platforms, and 13.7% from supply chain finance. During the period, the company recorded revenue of 3.45 billion yuan, an increase of 38% over the same period last year, and a net profit of 130 million yuan, an increase of 50.8% over the same period last year. Thanks to the significant increase in the proportion of third-party platform business and supply chain financial services, the gross margin during the period was 8.2%, and the overall performance was in line with our previous expectations.
Main points of investment:
Customer growth on its own platform is still strong. Thanks to the substantial increase in the number of small and medium-sized customers, the proportion of GMV contributed by small and medium-sized customers further increased to 66.8%. As of the end of September, the number of online trading customers of the company reached 17420, an increase of 104.5% over the end of September last year, and the number of registered customers reached 81262, compared with 45858 in the same period last year. At the same time, the customer conversion rate increased to 21.4% from 18.6% in the same period last year. The substantial increase in the number of customers provides a driving force for the sustained and rapid development of the company's business in the future, and the customer conversion rate is expected to continue to improve under the further optimization of precision services.
The tough guy is doing better than expected. As of November 11, the hard Egg platform has nearly 18000 Internet of things innovation projects and more than 18 million fans. During the period, the GMV contribution of the hard egg platform reached 1.7 billion yuan, accounting for 29.5% of the total GMV. In the first three quarters, the hard egg brought a total of 3.3 billion yuan in GMV, an increase of 378.9% over the same period last year. The scale development and realization process exceeded market expectations. The hard egg platform now serves not only start-up enterprises, but also large traditional enterprises seeking transformation, which will also log on to the hard egg platform to seek help to speed up the transaction realization of the hard egg supply chain in order to meet the needs of transformation or upgrading from traditional hardware products to smart hardware products. In the future, with the gradual improvement of the layout of the five major intelligent areas, the number of hard-egg projects and fans will continue to increase, and the cash realization ability of the hard-egg platform itself and the GMV that contributes to the company's three main businesses will be more considerable.
Actively seek opportunities for mergers and acquisitions. In addition to its own increment, the company is also actively looking for M & An opportunities to achieve business complementarity. The company has introduced professional investment institutions such as Dacheng International this year, and hopes to seek M & An opportunities through the funds raised to help the company achieve a rapid increase in earnings per share. The company has two main layouts in seeking the target of M & A, the first is to see whether the subject matter of M & A can help the company's earnings per share, and the second point is that if the subject matter of M & An is not profitable, but can expand SKU, or the team that can enable the company to obtain value-added services, it is expected to become the desired object of the company. In addition, the company is also actively looking for overseas M & A targets to achieve business expansion and layout in the United States, South Korea, Taiwan and other places, and become a platform that can serve global smart hardware companies.
Maintain the "highly recommended" rating with a target price of HK $15. We are optimistic about the three major drivers of the company's sustainable development in the future and keep the company's profit forecast unchanged. The annual 16E/17E revenue is 12.53 billion and 16.05 billion yuan respectively, and the basic EPS is 0.37 and 0.48 Hong Kong dollars respectively. We maintain the company's target price of HK $15, corresponding to 31 times the 17-year PE.
Risk disclosure: the growth rate of the traditional manufacturing industry has slowed down and the exchange rate fluctuates greatly.