Operating income increased by 24.4%, and attributable net profit increased by 55%.
The company's 2016H1 realized operating income of 691.9534 million yuan, up 24.43% from the same period last year. The net profit belonging to shareholders of listed companies was 38.4847 million yuan, up 55.08% from the same period last year. At the same time, the overall gross profit margin of the company during the reporting period was 21.25%, up 0.78% from the same period last year, and the net profit margin was 5.56%, up 1.16% from the same period last year. The main reasons for the growing performance are: 1) through the acquisition of upstream and downstream companies, the integration of resources to achieve coordinated growth of various industries, and the rate of sales and management expenses fell 4.18pp to 16% compared with the same period last year. 2) the devaluation of RMB is good for the development of the company's export business, the export is improved, the exchange loss is reduced, and the financial expenses are reduced by 3757.08% compared with the same period last year.
The revenue of navigation advertising business increased by 167%, and the traditional main business achieved steady growth.
1) when the company acquired Lingyun Media in 2015, 2016H1 achieved a year-on-year increase of 167% in navigation advertising revenue, contributing 34% of business revenue. With the transparency of the navigation industry and intensified competition in the industry, the company gradually transformed from a pure agency model to a diversified revenue model, and mobile advertising business grew rapidly during the reporting period. 2) H1 domestic income has increased by 2pp to 54%. By attending export fairs, tapping customers, innovating products, and vigorously developing e-commerce business, the company has ensured the continued stability of orders, and the traditional business has only decreased by 9% compared with the same period last year.
Deepen the transformation and persist in building an Internet-based cross-border service business chain
In the first half of the year, the company adjusted Huiyuantong's acquisition plan, changing from a stock issue to a 26% stake in Huiyuantong with US $58 million (557 million yuan) in cash, gradually deepening cooperation. As a technical intermediary of cross-border payment, its cross-border transaction compliance, stability and security are in the forefront of the industry. The future growth of the company's business mainly depends on the expansion progress of new customers.
It is estimated that the company's EPS for 16-18 years will be 0.32 yuan, 0.43 yuan and 0.54 yuan respectively, taking into account the good profitability of Lingyun Media and the scarcity of Huiyuantong, maintain the "buy" rating.
Risk hint
Huiyuantong downstream customer loss risk, exchange rate risk
