Main points of investment
Event: the company released its mid-2017 report.
Comments:
The digital marketing plate is developing rapidly, and the profits are growing steadily. 1) the company 17H realized revenue of 4.58 billion yuan, an increase of 49.4% over the same period last year, and a net profit of 319 million yuan, an increase of 16.9% over the same period last year, corresponding to EPS0.057 yuan. 2) the performance growth mainly comes from the rapid growth of the digital marketing sector. among them, the revenue of media agency services, precision marketing business and mobile traffic integration business, which accounted for 27.4%, 23.7% and 20.4% respectively, increased by 14.4%, 81.2% and 376% respectively. 3) the company expects net profit from January to September 2017 to be 436-566 million yuan, an increase of 0% over the same period last year.
Among the digital marketing subsidiaries, the performance of Wansheng Weiye is better. Among the subsidiaries that have completed the bet, 17H Shanghai Manku, Shanghai Argon Krypton and Amber Communication achieved net profits of 38.43 million yuan, 18.55 million yuan and 4.11 million yuan respectively, changing by-24%, 10% and-69% respectively over the same period last year. Wansheng Weiye, minimally invasive times, and smart advertising achieved net profits of 150 million yuan, 40.22 million yuan and 19 million yuan, respectively. Among all the subsidiaries, the performance of Wansheng Weiye is good, while that of Shanghai Argon and Krypton and minimally invasive era is general.
Profit forecast and rating. It is estimated that the company's annual return net profit in 2017-18-19 is 675x763x858 million yuan, and EPS is 0.12cusp 0.14Univer 0.15 yuan, respectively, and the corresponding share price PE is respectively times that of 25-22-20. The company continues to be optimistic about the in-depth layout of pan-entertainment / car / rental / finance and other sectors to create a full digital marketing ecology and continue to maintain the "holdings" rating.
Risk tips: increased competition in the industry; epitaxial M & An integration is not up to expectations.