Main points of investment:
The performance of the third quarter grew steadily, and the performance of new media public relations and big data business was eye-catching. In the first three quarters of 2016, the company achieved an operating income of 2.53 billion yuan (+ 3.76%) and a net profit of 126 million yuan (+ 12.92% compared with the same period last year, up 94.8% from a month earlier). The performance growth mainly comes from the excellent performance of new media public relations business and big data business. Among them, the revenue from digital marketing services increased by 90.93 million yuan, due to the rapid growth of new media public relations business in this period, while the revenue from public relations advertising services decreased due to the adjustment of some businesses with low gross margins; in addition, big data's marketing service income increased by 56.63 million yuan in this period, providing a new growth point for the company's overall performance growth. During the reporting period, the company has completed the industrial and commercial changes of Kuaiyou Century and Keming Fashion, and has signed equity transfer agreements and other relevant supporting documents with Smaato, and various mergers and acquisitions have been steadily advanced.
The acquisition of YOKA, investment in Signal and other active layout of content marketing, the future will rely on fashion media resources to create online celebrity fashion marketing. 1) invest in YOKA and expand the company's business to luxury goods, high-end makeup and other areas. YOKA is the first online platform and fashion new media in China to lead high-end fashion consumption and serve high-quality fashion life. Combined with the existing online celebrity resources, the company will actively explore "content + e-commerce" in the future.
New marketing operation mode, enter the field of fashion network celebrity marketing; 2) invest in Korean entertainment enterprises SIGNAL, gather entertainment content marketing resources, in the future can build a fashion new media platform, innovative profit model, and gradually achieve business coordination.
Acquisition of Smaato, investment in Zhongke Tianji Yunlue, Kuaiyou Century and other companies, combined with Haoye to jointly expand the digital marketing service plate. 1) the company's wholly-owned subsidiary invests 100% in Smaato, the world's leading global real-time advertising platform for mobile publishers and application developers. In fact, the time bidding technology and global data resources will be further combined with the company's digital marketing plate to make up the company's mobile marketing plate; there will be more exploration in marketing going out to sea in the future; 2) since this year, we will invest in Kuaiyou Century, Zhongke Tianji Yunliu under the Chinese Academy of Sciences, New Seven days and other companies to actively layout the digital marketing industry chain. in the future, various businesses will be deeply combined with good big data to vigorously open up domestic and foreign markets.
The globalization strategy continues to deepen to build an international global marketing communication group supported by fashion and entertainment socialized content and marketing big data. The company has set up two industrial M & A funds with a total size of 2.9 billion yuan since the beginning of this year, and will continue to look for high-quality targets at home and abroad in the future. In the future, through the effective coordination of various businesses, the company will upgrade its integrated marketing system from "executive service type" to "resource value type". Actively acquire mobile new media, digital marketing technology, entertainment marketing and other sub-leading enterprises, for more well-known brands and enterprises at home and abroad to provide a full range of integrated marketing communication services from offline to online, from China to the world.
Profit forecast: we expect the company's EPS from 2016 to 2018 to be 0.33,0.41 and 0.52yuan respectively. Considering that Blue cursor and Printing Media in the same industry unanimously forecast PE to be 29053 times in 2016, we give the company 48 times PE in 2016, corresponding to the target price of 15.84. maintain the buy rating.
Risk hint: business integration risk, industry growth decline risk, performance commitment is not up to expectations.
