Event: the company announced on the evening of October 27 that the revenue of Q1-Q3 in 2020 was 376 million yuan, an increase of 2.42% over the same period last year. The net profit of returning to the mother was 88 million yuan, down 25.30% from the same period last year, and 79 million yuan after deducting it, down 19.92% from the same period last year. After the split, 20Q3 achieved a revenue of 127 million yuan, an increase of 8.37% over the same period last year, a net profit of 20 million yuan, a decrease of 23.24%, and a net profit of 17 million yuan, down 8.92%.
In terms of gross profit margin, the overall gross profit margin of the company's 2020Q1-Q3 was 66.20%, down 8.99pct from the same period last year. 20Q3's overall gross profit margin was 63.60%, down 10.03pct from the same period last year. It is mainly due to the increase in the cost of effective advertising flow.
In terms of net interest rate, the overall net interest rate of the company's 2020Q1-Q3 is 24.26%, down 8.76pct from the same period last year. The overall net interest rate of 20Q3 was 16.56%, down 7.20pct from the same period last year.
The company's four Q1-Q3 expenses in 2020 were 159 million yuan, which was basically the same as that of the same period last year, and the overall expense rate was 42.14%, a decrease of 1.07pct compared with the same period last year. Among them: the increase in management expenses is mainly due to the increase in staff and workers' salary and rental expenses. After the split, the company's four 20Q3 fees were 64 million yuan, an increase of 1.5% over the same period last year, and the overall expense rate was 50.1%, a decrease of 3.4pct over the same period last year.
The net cash flow of Q1-Q3 operating activities in 2020 was 112 million yuan, compared with-86 million yuan in the same period last year, an increase of 230.81% over the same period last year, mainly due to the increase in the repayment of accounts receivable and the decrease in the pre-recharge of agency business. After the split, the net operating cash flow of 20Q3 is 23 million yuan, accounting for 18% of revenue and 112% of its net profit.
By the end of 20Q3, accounts receivable was 195 million, down 1.21% from the same period last year, and the amount received in advance was 56 million yuan, an increase of 59.97% over the same period last year. The prepaid account of Q1-Q3 in 2020 was 74 million yuan, an increase of 42 million yuan or 131% compared with the beginning of the year. Mainly due to the continuous improvement of the company's performance advertising service capability during the reporting period, new access to Toutiao, Qutoutiao and other traffic platforms, this kind of business needs to be recharged.
Q1-Q3 's long-term equity investment in 2020 was 185 million yuan, an increase of 46 million yuan or 34% compared with the beginning of the year. Mainly during the reporting period, the company completed the strategic investment in Zhejiang data Security Service Co., Ltd., Zhejiang Expressway Information Engineering Co., Ltd.
Investment suggestion: we issued an in-depth report on October 24, which is optimistic that the company will enter a new process of diversified realization through the competitive advantages of massive data sources and commercial realization ability in the future. the promotion of standardized public service products and the excavation of a large number of potential customers of brand services will become new growth points, especially for Q4 and next year's performance. The company's three-quarter report is in line with expectations, and we estimate that the company's net return profit for 2020-2022 will be 1.40 million 2.75 billion, respectively. According to the segment valuation method, the SaaS business such as public services will be valued at 30x, and the marketing business will be valued at E27x, based on a reasonable valuation of 16.843 billion yuan, corresponding to the target price of 42.10 yuan per share, maintaining the "buy" rating.
Risk tips: macro environment, data resource security, brand image and intellectual property rights, brain drain risk, etc.
