Net profit doubled in 2018: according to preliminary estimates by the financial department, the company's net profit attributable to shareholders of listed companies is expected to be 179 million yuan to 214.8 million yuan in 2018, an increase of 89.59 million yuan to 125.39 million yuan compared with the same period last year, an increase of 100.20% to 140.24%.
The main reasons for the performance growth are as follows: in 2018, the company's advertising revenue grew steadily, the cost was effectively controlled, and the revenue of local branches increased by more than 40% over the same period last year; the third-party content audit business showed a growth trend, and the revenue increased by 166% compared with the same period last year; the public opinion and data business of the subsidiary Beijing people online Network Co., Ltd. maintained a growth trend, and its revenue increased by about 20% over the same period last year. Training, communication, consulting and other extension business is growing rapidly, and revenue is up about 22% over the same period last year.
The recent market performance is eye-catching, and the price-earnings ratio is much higher than the industry average: as of March 6, 2019, the closing price of the company's shares is 25.56 yuan per share, the static price-earnings ratio is nearly 300 times, and the dynamic price-earnings ratio is nearly 200 times. The company's Internet and related service industries have a price-to-earnings ratio of 32.86 times, significantly higher than the industry's price-to-earnings ratio.
Content risk control business is difficult to predict accurately: the company's content risk control business mainly provides information content audit services to Internet, mobile Internet and other emerging media customers to solve the information security problems of new media. In 2017, this sector achieved operating income of 15.81 million yuan, accounting for 1.13% of the company's 2017 operating income, accounting for a relatively low proportion of revenue. Content risk control industry is an emerging field, and it is impossible to accurately predict its specific market size.
Profit forecast: we estimate that the operating income of the company in 2018, 2019 and 2020 is 28.01,42.02 and 5.463 billion yuan respectively, the net profit is 1.91,2.35 and 278 million yuan respectively, and the earnings per share is 0.17,0.21,0.25 yuan.
Risk tips: 1) the change of national industrial policy; 2) the progress of new business is blocked.
