Key points of investment
The company achieved a significant increase in revenue and net profit in 2018H1. 1) The company achieved revenue of 3.79 billion yuan in 18H1, an increase of 182.27% over the previous year; realized net profit attributable to shareholders of 191 million yuan, an increase of 77.6% over the previous year. 2) The increase in the company's revenue was mainly due to a significant increase in sales revenue in the transaction services sector and the data service sector.
Revenue from transaction services and data services increased significantly. 1) The transaction service revenue of 18H1 Company increased 510.3% year-on-year to 3.09 billion yuan. Its revenue mainly comes from the company's three vertical industrial internet platforms, Medium Model International, which buys Chemical Plastics and Cotton Union. Among them, the trading platform's own revenue was 2.95 billion yuan, thanks to the platform business incubated by the company and the merger with the cotton trading platform “Cotton Union”, which was successfully controlled on April 8. 2) 18H1's data service revenue increased 65.7% year-on-year to 180 million yuan. Its subsidiary, Zhaoxin, received big orders from major customers to increase revenue from its anti-counterfeiting traceability business. Its subsidiary Huijia received big orders from major customers to increase revenue from data applications.
The revenue structure affects gross margin and net interest rate. 81.5% of the company's revenue comes from the trading services sector. Revenue from the 2018H1 trading sector increased fivefold, but gross margin was low, causing the overall gross profit margin and net interest rate to decline.
Transaction+data+information troika, enabling the industrial Internet to empower the industrial community. By building an industrial Internet ecosystem based on data service business, transaction service business as scenario, and supported by information service business, the company is concentrating on industrial transformation and empowering enterprise transformation.
Improve technology and optimize the three major business segments. 1) The company focuses on the three tracks of buying chemicals and plastics, cotton and medium model international. Through internetization, digitalization and the Internet of Things, the company improves information matching efficiency, optimizes functional modules, enhances transaction processing capabilities, builds an efficient trading platform, and expands transaction scale. 2) The company focuses on developing data services and improving the data service system. Its subsidiary, Zhaoxin, uses blockchain technology to promote the traceability development of the industry; its subsidiary, Huijia, launched B-end precision marketing products to enhance integrated marketing services. 3) The company optimizes the information service plan and complements it with a result-oriented approach. Its subsidiary Zhongguancun Online uses 5G Spring Breeze to strengthen its traffic entry position; its subsidiary Huicong Network improves new and old products and enhances marketing effectiveness.
Risk warning: The development of trading services, data services and information services falls short of expectations, and macroeconomic downside risks.
