Event: the company announced that in the first three quarters, the operating income was 2.084 billion yuan, an increase of 221.13% over the same period last year; the net profit was 147 million yuan, an increase of 746.15% over the same period last year; and the basic earnings per share was 0.23 yuan per share, an increase of 472.41% over the same period last year. It is estimated that the operating income for the current year is between 21.7 and 2.8 billion yuan, and the cumulative net profit is between 1.54 yuan and 191 million yuan.
Comments:
The high performance growth is due to the rapid growth of newly added target consolidation and Jinyuan business: the company completed micro-win interaction and cloud space-time mergers and acquisitions in 2015, and added two new target results in 2016 compared with the same period last year. At the same time, the expansion of Jinyuan business led to a substantial increase in revenue and profits in 2016. The company has spun off the business of surge protection products, thus completely transforming the field of mobile digital marketing. During the reporting period, the profitability of the company's assets was significantly enhanced, the rate of return on net assets gradually increased, the annualized weighted return on net assets was 9.26%, and the transformation achieved initial results. The company actively promotes management and core backbone equity incentive stock options, covering the core members of the parent company and subsidiaries, and fully mobilize the enthusiasm of its employees.
There are many bright spots in business operation, and the investment targets are further sorted out: in 2016, the company made many achievements in the development of mobile marketing business, becoming the largest core agent of VIVO sub-industry bidding network service, OPPO sub-industry bidding e-commerce and financial industry core agent, and with XIAOMI business cooperation to complete the task significantly ahead of schedule, by focusing on the integrated development of mobile marketing business, the trend of synergy between M & A targets is gradually reflected. The total bet performance of its target for the whole year is 180 million, and the exercise condition of stock option is that the overall performance is not less than 198 million, and the annual performance is expected to exceed 200 million. Around the continuous layout of the industrial chain, the company has combined participation and control to reserve a number of targets, although the company's recent cash plus stock acquisition of Kid Technology and Wuxi online and offline have not been approved by the CSRC, in addition, the company has also further combed those participating in the bidding. exit Zhitui Network, Qixin Interactive and other target investment. Extension development and target reserves have been adjusted, from the industry development trend, we believe that the company's endogenous + epitaxial integration development is expected to continue to promote.
Profit forecast and valuation: the company's 16-18-year net profit is expected to be 2.23,2.96 and 380 million yuan, the corresponding diluted EPS is 0.35,0.46,0.6 yuan, and the current stock price corresponds to 48,37,28 times PE. Maintain the "highly recommended" rating.
Risk hints: the risk of market shock, epitaxial mergers and acquisitions do not meet expectations, bets do not meet expectations.