I. Overview of events
The company publishes its 2016 semi-annual report. During the reporting period, the company achieved operating income of 692 million yuan, an increase of 24.43% over the same period last year, and the net profit belonging to shareholders of listed companies was 38 million yuan, an increase of 55.08% over the same period last year. Realize basic earnings per share of 0.08 yuan.
II. Analysis and judgment
Cross-border e-commerce, Internet marketing business contributed to growth, profitability improved the company in 2016 H1 revenue growth of 24.43% year-on-year, home net profit increased by 55.08%, excellent performance. During the reporting period, Lingyun Media and the cross-border e-commerce business brought new performance growth points for the company: the revenue of the Internet and related services business reached 235 million yuan, an increase of 168% over the same period last year, and the cross-border e-commerce business achieved revenue of 62 million yuan.
During the reporting period, the gross profit margin of traditional stationery increased, the business scale of acquired products with low profitability was also greatly reduced, the gross profit margin of sales increased 0.72pct to 21.25%, and the effective control of expenses during the period increased the net profit margin to 5.64%, thus improving profitability.
The cost control is effective, and the expense rate has decreased during the period.
During the reporting period, the company's expenses were well controlled: the sales expense rate decreased by 0.25pct to 8.99% compared with the same period last year, the management expense rate increased by 0.25pct to 7.01%, the financial expense rate decreased by 0.31pct to-0.30%, and the overall expense rate decreased to 15.71% during the period. The increase in sales expenses is mainly due to the increase in staff salaries, market promotion fees and miscellaneous transportation fees, but the rapid growth of revenue has pulled down the corresponding rates; the increase in management expenses is mainly due to the increase in intermediary fees and employees' salary; the decline in financial expenses is the result of a substantial reduction in interest expenses and an increase in exchange earnings.
Acquire Huiyuan Tong and expand the cross-border payment industry chain
Huiyuan Tong is the industry's leading one-stop cross-border payment service, with revenue of 243 million yuan in 2015, an increase of 448% over the same period last year, and a net profit of 98 million yuan (- 20 million yuan in 2014). As the cross-border payment market is in the stage of rapid growth, the performance of Huiyuan Tong is expected to continue the trend of high growth. After the acquisition, the company will not only gain the first-mover advantage in the market, but also achieve the common improvement of performance and profitability. This acquisition will further improve the company's e-commerce business chain and form a closed loop, and the comprehensive service capacity of e-commerce will be effectively improved. It is also expected to help the company obtain overseas merchant resources, achieve global business cooperation, and enhance e-commerce business operation capacity.
Launch fashion stationery brand to enhance the competitiveness of traditional business
In response to the increase in consumers' personalized demand, the company launched the kinbor lifestyle brand stationery project at the end of 2015. During the reporting period, the company continuously improved kinbor's structure, process and team building in sales, production and procurement, accelerated distribution customer development and Internet channel development, and increased brand exposure from brand marketing, audience fan demand orientation, distribution wholesale and other dimensions. At present, the independent official website of kinbor has been completed, and Tmall's flagship store, hand account Life Store and BABA store have also been opened, with nearly 100 distribution customers offline, laying the foundation for creating a new competitive advantage in the stationery market.
During the reporting period of simultaneous expansion of domestic and foreign markets and diversified marketing methods, domestic and foreign channels were expanded at the same time: (1) domestic sales: vigorously develop e-commerce business and actively promote cooperation with e-commerce platforms such as No.1 store, SUNING, Feiniu net, etc.; set up a major customer service team, full-time engaged in State Grid, China Mobile Limited, China Petroleum & Chemical Corp and other major customers business development and contact The use of Lingyun Media and its Eli Fashion Network and Eli Special pricing platform to provide flow resources for the company's sales channels for effective product promotion, market exploration, sales channel expansion and optimization. (2) Export: strengthen customer exchanges and visits, actively participate in Frankfurt Fair, Canton Fair, Japanese Stationery Fair and other trade fairs; test the waters of stationery export cross-border e-commerce business, and begin to prepare to open stationery stores on Amazon.Com Inc, Express and other platforms.
Third, profit forecast and investment suggestions
We are optimistic about the performance supporting role of the company's traditional stationery business, the development potential of the Internet marketing business, and the improvement of the company's competitiveness brought about by the continuous extension of the cross-border payment industry chain. without considering the fixed increase, the company is expected to achieve basic earnings per share of 0.28,0.37,0.43 yuan per share in 2016, 17 and 18 years, and the PE in 2016, 17 and 18 years is 70X, 53X and 45X respectively. Maintain the company's "highly recommended" rating.
Fourth, risk tips:
1. The price of raw materials has risen. 2. Lingyun Media and Huiyuantong have failed to meet their promises.
