Company referrals

Boya interaction is a game of chess and card development and marketing, mainly through the "Boya Texas" and "Boya landlords", which has been well received by players from Hong Kong and Taiwan since its inception. In addition to expanding the market in southern China and even in the environment, we have also actively attracted large-scale mobile phone users in recent years, totaling more than 360 million people.

Service summary

Burson Public had an ideal first quarter of 2014, with revenue increasing by 48.3% year-on-year to 222 million people (the same below), while mobile revenue rose sharply by 199% to 1.11 million yuan compared with the same period last year, while Internet mobile phone business fell slightly by 1.7% to 110 million. For the first time, mobile services surpassed Internet services as the primary source of revenue. Gross profit rose 41.4% year-on-year to 133 million, while share profit rose 556% to 62.24 million yuan.

The cost of moving expenses has increased significantly, and the per capita income has dropped sharply.

According to the company's statistics, as of 2013, the total cost of consumption increased by 468% from 251 million to 368 million. The increase in consumer spending mainly comes from mobile users, which has greatly increased the average monthly MPU of mobile phones by 7.78% to 183.5 million. However, the average monthly income (ARPPU) of payers dropped sharply from 34.9 yuan to 12.50 yuan. Because ARPPU failed to keep up with the growth rate of consumer goods, the overall income growth did not fully benefit from the rapid growth of consumer spending.

The excess income is too heavy for single products, and the price is so low that the market is full of similar products.

At that time, Burson's main source of income came from its main brands, "Boya Texas Holdings" and "Boya Texas landlords", both of which accounted for a major share of the market, especially "Boya Texas Markets", which ranked at the top of the rankings of similar companies in many regions / countries. However, "Boya Tech" accounts for 83% of the company's revenue, plus the "Boya landlords" account for 12% of the company's revenue, which makes up 95% of the total income. At the same time, large and small players in the market are rubbing their hands, preparing to share a piece of the pie in the chess and card market, including Liangzhang, Baidu, Inc., and so on.

The growth rate of expenditure is higher than that of income.

At the same time of the substantial increase in sales, the company's expenditure increased faster than its income. In 2013, sales and market promotion expenditure increased by 80.7% to 148 million compared with the same period last year, and administrative expenditure rose even more sharply by 13.75% to 111 million. If the growth of expenditure continues to rise, it will greatly affect operating interests and equity interests.

As of 2013, the total number of shares issued was 737 million shares, a substantial increase from 3.6 million shares in 2012, resulting in a sharp drop in earnings per share from 43.54 points to 25.47 points, less than 40%.

Valuation

We think that the city is looking forward to the growth of revenue from Burson's mobile market. can we recognize that in order to increase the efficiency of the company in the market, the problem is how to make big players use customers and maintain customer loyalty in many similar products, so that ARPPU can continue to pick up. If the growth rate of profitable income will rise sharply, it will offset the cost expenditure; otherwise, the future income will not be able to support the overvaluation of the diluted shares. As a result, we conservatively give Burson Interoperability a valuation of HK$ 7 and a per-share deposit value of HK$ 1.62, with a "neutral" rating of HK$ 8.62. The operating valuation HK$ 7 is 28 times 2015 forward earnings, mainly due to the high rate of growth in expected mobile transactions.

At the end of the day.

The growth rate of the payment system has been greatly increased.

ARPPU continues to decline

Expenditure is not under control