The performance was in line with expectations, and stationery and Internet marketing grew steadily. In the first three quarters of 2016, the operating income was 1.129 billion yuan, up 14.92% from the same period last year, and the net profit was 72 million yuan, up 35.38% from the same period last year. In the third quarter, the operating income was 437 million yuan, up 2.51% from the same period last year, and the net profit was 34 million yuan, up 18.23% from the same period last year. The company expects the net profit attributable to shareholders of listed companies to increase in 2016, while the net profit of stationery business and Internet marketing and services business will increase steadily.
Actively expand stationery business, e-commerce model to achieve industrial upgrading. The company is a well-known domestic stationery brand. In recent years, with the rapid rise of e-commerce, the company has actively carried out stationery e-commerce business in line with the changes of the times. At present, it has a cooperative B2C platform represented by JD.com, a self-operated B2C platform represented by Tmall, and an agent C2C platform represented by Taobao, and actively promote cooperation with e-commerce platforms such as No.1 Dian, SUNING, Feiniu net, etc. In addition, the company has tested the life and fashion brand stationery, and has built an independent kinbor official website, realizing the diversified development of stationery business. With the advantage of stationery, the company extends the original business, develops the Internet business and cross-border e-commerce business, and enriches the business model.
Internet marketing, e-commerce platform and cross-border payment open up the whole industry chain of cross-border e-commerce.
In #, through the acquisition of Lingyun Media, the company grabbed the entrance to Internet traffic and cut into the field of Internet marketing. In 2015, the company established Global Amoy and created a "Global Amoy" cross-border e-commerce platform to formally enter the cross-border e-commerce field, realizing the introduction of foreign goods into domestic resale. In the same year, the company took a stake in Boyuan Technology and laid out e-commerce solutions to "protect" cross-border e-commerce. This year, the company firmly acquired the stake in Huiyuan Tong and deployed cross-border payment services, which is an important link to open up the whole industry chain of cross-border e-commerce. At present, the company has basically formed a comprehensive ecological circle of cross-border services from platform to electronic payment. The Ministry of Commerce predicts that the import and export trade volume of China's cross-border e-commerce will reach 6.5 trillion yuan in 2016 and grow to 8 trillion yuan in 2017. in the next few years, the proportion of cross-border e-commerce in China's import and export trade will increase to 20%. The annual growth rate will exceed 30%, and cross-border e-commerce has broad prospects in the future.
Investment suggestion: the company has actively expanded its stationery business in recent years, realized industrial upgrading by virtue of e-commerce model, and developed Internet business and cross-border e-commerce business by virtue of stationery advantages.
At present, the company has basically formed a comprehensive ecosystem of cross-border services from platform to electronic payment, and cross-border business is expected to usher in rapid growth. It is estimated that the EPS in 2016-2017 will be 0.32 yuan and 0.32 yuan respectively, maintaining the buy-A rating and the 6-month target price of 26 yuan.
Risk hint: the development of cross-border payment industry is not as expected.
