The number of customers doubled compared with the same period last year, and GMV growth exceeded market expectations
The GMV of 1H16 Company was 9.25 billion yuan, an increase of 59.2% over the same period last year. Proprietary GMV is 5.61 billion yuan, accounting for 60.6%; third-party platform GMV is 2.45 billion yuan, accounting for 26.5%; supply chain finance GMV11.9 is 100 million yuan, accounting for 12.9%. The number of registered customers increased by 69.1% year on year to 69137, and the number of online trading customers reached 14592, an increase of 99.8% over the same period last year. Revenue rose 31.9% year-on-year to 570 million yuan, driving gross profit growth of 34.3% to 340 million yuan; adjusted profit attributable to shareholders was 230 million yuan, up 31.4% from the same period last year.
The realization of "hard egg" has achieved initial results, and its growth is more remarkable in the second half of the year.
As of the first half of the year, Hardy has attracted more than 1250 million fans and 13000 Internet of things projects, contributing 1.2 billion yuan to GMV, accounting for 22.4% of the total, indicating that the cash model of "supply chain proprietary e-commerce" that was tried at the beginning of the year has achieved initial results. Hardball reached strategic cooperation agreements with platforms such as JD.com, Taobao and SUNING to share high-quality traffic to tens of millions of BABA platforms, helping creators expand the exposure of products and brands, and helping smart hardware entrepreneurial teams to achieve business value. The company has formed a vertical ecosystem in the five emerging fields of smart cars, artificial intelligence, smart homes, robots and new materials. Docking the global IOT industry and China's supply chain resources will drive business growth in the second half of the year and improve the hard-egg monetization strategy.
With the opening of the Shenzhen-Hong Kong Stock Connect, the company's valuation will be further improved.
As Hang Seng Composite large stocks and Mid-sized stocks Index, the company has been selected for the Shanghai-Hong Kong Stock Connect and has become a potential target for the Shenzhen-Hong Kong Stock Connect. It is expected that after the opening of the Shenzhen-Hong Kong Stock Connect, the company's excellent texture will be able to attract more active mainland capital participation, as its business continues to grow bigger and stronger, the company's valuation will be further improved. The company restarted its buyback program on May 6, sending a signal to the market that the share price was undervalued, reflecting management's confidence in the company's fundamentals and safeguarding the rights and interests of shareholders. At the same time, the large-scale investment of the social security fund, which is known as the "weather vane" of the A stock market at the beginning of the year, not only affirms the high-quality target of the Hong Kong stock "Internet +", but also values the valuation of the hard-egg platform.
Be optimistic about the future development of the company and maintain its "buy" rating
We expect the company's EPS to be RMB 0.34,0.45,0.60 in 2016-2018 and CAGR=33% in the next three years. The integrated company leads the market, the performance continues to grow steadily, and the hard egg realization has great potential to promote the development of the supply chain business. The "buy" rating is reiterated, with a target price of RMB13.0 (HK $15.2), corresponding to the PE of 38x in 2016 and PE of 29x in 2017.
Risk hint: the market competition intensifies; the realization of hard eggs does not meet expectations.