The company announced the performance of H1 in 2019. 2019H1, the company's revenue was 780 million yuan, an increase of 65% over the same period last year; of which the revenue from the interactive effect advertising business was 770 million yuan, up 67% from the same period last year; the income from users operating the SaaS business was 10 million yuan, up 225% from the same period last year; the gross profit was 31.3% Mather 5.6pct; the loss during the period was 380 million yuan, and the adjusted net profit was 130 million yuan, an increase of 78% over the same period last year; and the interim dividend per share was 9 RMB.
The interactive effect advertising business continued its high growth: 2019H1, the revenue of interactive effect advertising was 770 million yuan, an increase of 67% over the same period last year; the number of daily active users was 29.9 million, an increase of 75% over the same period last year; the number of ad views was 97 billion, an increase of 72% over the same period last year; and the number of billed clicks was 26 billion, an increase of 45% over the same period last year. The company is a leader in the interactive effect advertising industry, with great advantages in data precipitation and technical capabilities. Through the underlying platform, big data Center and excellent oCPC system, while bringing accurate services and benefits to advertising services and media, we expect to continue to grow at a high speed in recent years.
User operating SaaS began to make efforts: 2019H1, user operating SaaS revenue of 10 million yuan, a sharp increase of 225% compared with the same period last year. As of 2019-6-30, the number of registered mobile App exceeded 16000, and a total of 568 paying customers used the company's paying customers to operate SaaS business; since April 2018, the average fees per online enterprise, large offline and small offline enterprises are 31000 yuan, 110000 yuan and 13000 yuan respectively. Since the charging began in April 2018, relying on the company's advantages in information technology infrastructure and data analysis, the business has grown rapidly, and we expect that there is still a lot of room for development.
The expense rate improved significantly: 2019H1, the company's sales expense rate was 6.91%, down 2.15pct from the same period last year; and the management expense rate was 15.15%, down 2.93pct from the same period last year. We believe that: 1) the decline in expense rate is mainly due to the improvement of sales revenue scale and efficiency; 2) with the growth of the company's sales scale in the future, the expense rate is expected to be further improved.
Profit forecast and investment advice. We estimate that 2019-2021 revenue of 21.1,31.0 and 4.22 billion yuan, net profit of-0.86,6.45 and 965 million yuan, adjusted net profit of 3.84,6.45 and 965 million yuan, growth rate of 87% (year-on-year adjusted net profit of 18 years), 68% and 50%; adjusted EPS0.35, 0.58 and 0.87 yuan. Taking into account the unsustainability of the adjusted item and little impact on cash flow, we adopt the adjusted profit / loss for the year and give the 2019 PE 15-17X, corresponding to a reasonable value range of RMB5.25-5.95 per share; according to HK $1 = RMB0.90, corresponding to HK $5.83-HK $6.61 per share, which is better than the market rating.
Risk hint: the risk that advertising investment in downstream companies slows and macroeconomic growth is lower than expected.