Main points of investment
Event: according to the company's semi-annual report for 2016, the company achieved an operating income of 965 million yuan, an increase of 61.33% over the same period last year, and a net profit of 130 million yuan for shareholders of listed companies, an increase of 117.25% over the same period last year. At the same time, the capital reserve will be transferred to shareholders by 30 shares for every 10 shares.
Comments:
The performance was slightly lower than expected, mainly due to the main loss and the decline in net profit of wide-wing communications. The rapid growth of net profit is mainly due to the consolidation of advertisements, which achieved a net profit of 80.46 million in the reporting period. In addition, the net profit of Capital Interconnection reached 63.2542 million yuan during the reporting period, an increase of 40% over the same period last year, still maintaining rapid growth.
Gross profit margin rose year-on-year, three fees accounted for revenue slightly decreased compared with the same period last year. The company's gross profit margin and net profit margin in the first half of the year were 27.20% and 13.51% respectively, an increase of 2.44% and 3.57% respectively over the same period last year; sales expenses, management expenses and financial expenses accounted for 0.37%, 0.22% and-0.12% of revenue respectively compared with the same period last year.
The company has comprehensively carried out communications + Internet transformation, while continuing to grow, the Internet extension expansion strategy is also constantly advancing: the outbreak of SMS demand of customers of enterprises benefiting from information services is expected to maintain a high annual growth rate of 30%. The business progress of traffic operation will be the next growth flashpoint of the national capital. Digital marketing business benefits from the rapid growth of the programmed purchase advertising industry, and is expected to achieve compound growth of more than 30% in the next few years.
Profit forecast: in the short term, the consolidation effect will promote the explosive growth of the company's performance, and the rapid growth of enterprise text messages and digital marketing business will promote the company's compound high growth in the next few years; in the long run, the company's Internet transformation strategy will continue to advance. Due to the performance slightly lower than expected, downgraded the company's 16-18 EPS to 0.92,1.25,1.60 yuan, downgraded to "overweight" rating!
Risk hint: the competition of enterprise SMS is intensified, the development of SSP industry is not as expected, and the extension is not as expected.