Results of the three quarterly reports for 2017:
In the third quarter of 2017, the operating income was 1.116 billion yuan, an increase of 27.29% over the same period last year, and the net profit was 161 million yuan, an increase of 39.28% over the same period last year. In the first three quarters, the company achieved operating income of 2.817 billion yuan, an increase of 50.41% over the same period last year, and a net profit of 346 million yuan, an increase of 33.59% over the same period last year.
The results of the transformation are beginning to show, and the company has successfully built a marketing ecological chain.
The company was originally one of the leading enterprises in the domestic mid-and high-end LED full-color display application industry. In 2015, the company carried out a major asset restructuring, on the basis of the original domestic leading LED display display manufacturing enterprises, initially formed a marketing service industry chain, including public relations planning, agency execution, advertising platform, interactive activities, advertising resources and digital display equipment. The company has three core business sectors: digital equipment plate, digital marketing plate and digital outdoor plate.
"extension + endogeny", two factors stimulate the soaring performance of the company's three major sectors. The rapid growth of the company's performance is attributed to the company's profitability under the coordination of industrial chain integration, the growth of existing business and the merger of corporate data such as Lima network. From a sub-plate point of view:
1. The digital equipment sector has benefited from a slight pick-up in the popularity of LED devices with small spacing.
two。 Digital marketing section to expand more Internet advertising resources to create new sources of revenue. Through the acquisition of the target Lima network, Litang marketing and Epp new media have expanded Shenma search, moments and weather forecast APP advertising resources. Youtuo Public Relations, Litang Marketing and other subsidiaries continue to produce high-quality content and creativity, all-round to provide customers with Internet marketing solutions. The resource sharing among subsidiaries makes the upstream and downstream of the marketing plate, and the synergistic and complementary benefits appear.
3. Digital outdoor sector, the company through investment mergers and acquisitions to improve media resources and outdoor media resources management system e-TSM network construction, the current media resources network has covered the domestic large and medium-sized cities of outdoor advertising market. The company's investment increase in Hangzhou Panjing during the reporting period will help to further improve the company's product categories, realize the strategic layout of the company's digital outdoor media network business, and enhance the company's overall competitiveness.
Profit forecast and rating:
We expect the company's net profit from 2017 to 2019 to be 570 million yuan, 700 million yuan and 810 million yuan respectively, corresponding to 19 times, 16 times and 13 times PE respectively. Given the integrity of the company's layout in the field of digital marketing and the uniqueness of the A-share mark, it is given a "maintenance" rating.
Risk hint: acquisition integration risk, industry competition aggravates the risk.