Event

The company releases its 2019 semi-annual report

The company's 19H1 achieved revenue of 208 million yuan, an increase of 63.46% over the same period last year; net profit of 60 million yuan, an increase of 285.35% over the same period last year; net profit of 58 million yuan, an increase of 365.85% over the same period last year; ROE 4.95%.

Brief comment

Continue to focus on the double main business of "energy saving and environmental protection + Internet marketing". The fast-growing company set foot in acoustic noise reduction in 2006, began to develop waste incinerator protection technology in 2009, expanded and acquired Wuhan Flying Tour in 17 years, and developed Internet marketing business in Changsha Jufeng, forming a dual-main business pattern of "energy saving and environmental protection + Internet marketing". After 18 years of in-depth layout of acoustic noise reduction and garbage anticorrosion, the company ushered in rich results in the first half of 19 years, with operating income of 208 million yuan, an increase of 63.46% over the same period last year, and net profit of 60 million yuan, an increase of 285.35% over the same period last year.

The advantage of "energy saving and environmental protection" was highlighted, and the performance increased by 109.79% in half a year.

In the environmental protection section, the company's traditional anti-wear and anti-corrosion business has stabilized and rebounded due to the increase in demand from downstream steel, cement, power and petrochemical industries and the recovery of investment demand for equipment. The operating income was 35 million yuan, an increase of 15.35% over the same period last year, and the gross profit margin increased to 33.51% from the same period last year. In the field of waste incinerator protection, the company has become one of the few domestic enterprises that master the core technology and can carry out large-scale construction, serving Kang Heng Environment, Everbright International, Jinjiang Group, Green Power and other leading enterprises. 2019H1 achieved business income of 29 million yuan, an increase of 147.77% over the same period last year. In terms of acoustic noise reduction engineering, noise reduction, as the fourth source of pollution, is clearly restricted in environmental supervision and environmental tax policies, and noise reduction has become a rigid demand. benefiting from the rapid release of industry demand, the company earned 29 million yuan in the first half of the year, achieving an increase of 1147.73%. The company's three sectors are blooming together, the environmental protection business has achieved nearly 110% growth in half a year, the contribution to the company's performance has increased to 44.81%, and the gross profit margin has increased by 1.69 PCT to 33.39%. The advantage of "energy saving and environmental protection" has been highlighted.

The Internet marketing sector grew by 37.57%, and the strong forces joined forces to consolidate the position of the industry.

During the reporting period, the company's Internet marketing section achieved business income of 94 million yuan, an increase of 37.57% over the same period last year, accounting for 45.08% of the performance contribution, which is another major source of income for the company at present. With Wuhan Feiqi and Changsha Jufeng's own high-quality media resources and stable customer resources, the company took advantage of the rapid development of the Internet industry and joined forces with upstream Internet giants such as Baidu, Inc., BABA, Tencent and other Internet giants to consolidate its position in the industry. at the same time, take the fine technology-driven delivery as the core to promote the sustained and steady growth of the performance of the Internet marketing plate. Plate gross profit margin as high as 74.75%, year-on-year growth of 4.17PCT, excellent profitability. The performance of Wuhan Feiyou and Changsha Jufeng is in the four fiscal years from 2016 to 2019. Although the annual performance of 18 years is slightly lower than the promised amount, the cumulative performance from 2016 to 2018 has been exceeded. Among them, Wuhan Flying Tour accumulated excess performance commitments of 1.7149 million yuan, Changsha Jufeng accumulated excess performance commitments of 80700 yuan. In the first half of 2019, the company's Internet sector achieved a double increase in revenue and gross profits. if measured according to the annual profit level of 18 years, the half-year performance contribution of the two Internet subsidiaries has exceeded 50 million, and there is a good chance that the annual performance commitment of 90 million yuan will be fulfilled, further thickening the company's profits.

Strengthen R & D investment, maintain low asset-liability ratio, and be optimistic about the long-term development of the company.

During the reporting period, the company strengthened cost control, achieving a cost rate of 22.48%, a sharp drop of more than 12% over the same period last year; at the same time, the company increased investment in research and development, 19H1 R & D expenditure of 10.5051 million yuan, an increase of 12.98% over the same period last year, two authorized invention patents, one utility model patent, and seven new patent applications. In addition, the company currently has 125 million yuan in cash on hand; the net operating cash flow is 17.2597 million yuan, an increase of 13.66% over the same period last year; and the net increase in cash and cash equivalents is negative over the same period last year, an increase of 243.64%. Healthy cash flow and abundant funds on hand protect the rapid landing and stable promotion of orders. At the same time, the company's asset-liability ratio is low, only 16.12%, with a strong ability to resist financial risks. We continue to be optimistic about the future development of the company's fast-growing dual main business of "energy saving, environmental protection and Internet marketing". It is expected that with the support of existing technology and experience, the company is expected to rapidly increase its market share in many business areas in the future. the company is expected to achieve operating income of 6.05,8.35 and 1.097 billion yuan in 19-21, and return to its mother net profit of 1.17,1.64 and 206 million yuan. EPS corresponds to 0.38,0.53 and 0.67 yuan, maintaining the "buy rating".