Comments on the three Quarterly report:
The company reported three quarters: from January to September, the company achieved revenue of 5.658 billion, an increase of 27.85%, and a net profit of 581 million, an increase of 75.86%, falling into the upper limit of the performance forecast range, deducting 554 million of non-return net profit and an increase of 92.78%. Among them, Q3 achieved revenue of 1.881 billion, with a decrease of 0.03%, and a net profit of 143 million, an increase of 28.02%.
The results of the three quarterly reports are basically in line with expectations. Q3 revenue growth slowed slightly compared with the same period last year, but profit growth remained at a reasonable level, and operating performance was basically in line with expectations. It is expected that the Internet media business and digital marketing business will continue to maintain rapid growth. In the first three quarters, the company achieved a substantial increase in operating income and profits over the same period last year, with prepaid accounts of 262 million, an increase of 42.5%. The overall performance of the company is better than that of its peers, and the scale of the business continues to expand.
The gross profit margin continues to rise, and the three fees are better controlled. The company's gross profit margin in the first three quarters was 17.17%, with the same increase in 4.4pct, and the revenue growth rate was stagnant in a single quarter, but the gross profit margin index still maintained a steady improvement level, confirming that the company relies on intelligent technology to create a differentiated competitive advantage, focusing on R & D to effectively reduce operating costs, of which R & D expenses grew by 90.33%, a substantial increase over the same period last year. In addition, the company's three fees were well controlled, and the company's management expenses, sales expenses and financial expenses increased by 36.95%, 2144% and-26.94% respectively in the first three quarters. The growth rate in a single quarter maintained the average level in the past, and all operating indicators maintained a healthy level.
The company's cash flow maintained a positive adjustment. The company's monetary capital was 1.012 billion, with an increase of 40.4%, and the net operating cash flow was 125 million, with an increase of 152.91%. The Internet business increased significantly during the reporting period, and the company strengthened financial management and control to optimize and enhance the positive adjustment of operating cash flow. In addition, the mutual fund business is in the period of business development, and the loan business expenditure has increased, resulting in a net operating cash outflow of about 102 million yuan, and a net operating cash inflow of about 228 million yuan from Internet media and digital marketing businesses outside the mutual fund business.
Profit forecast: we recommend that we continue to pay attention to the progress of the company's Spigot mobile terminal and wait for the performance catalys. it is estimated that the company's 18-20-year return net profit is 858 million, 1.076 billion and 1.352 billion yuan, EPS is 0.89 yuan, 1.11 yuan and 1.40 yuan respectively, corresponding to PE is 11 times, 9 times and 7 times, maintain the "buy" rating.
Risk tips: goodwill impairment risk; fierce market competition; customer churn risk.
