The company's revenue / return net profit / non-return net profit in the first three quarters is 735 million / 397 million / 111 million, which is 27.9% compared with the same period last year. Among them, the company Q3 revenue / homing net profit / deducting non-homing net profit 247 million / 266 million / 32 million, year-on-year-5.6% Universe 886.8% Universe 29.4%. The overall revenue scale of the company has decreased, but its profitability has improved significantly. As the leader of enterprise cloud communications, we are optimistic about the company's continued growth in video conferencing, corporate live broadcast / email and other areas in the future, and maintain its "overweight" rating.
The scale of revenue has declined, but profitability has improved significantly. The company's revenue in the first three quarters was 735 million yuan, down 4.7% from the same period last year, of which Q3's revenue in a single quarter was 247 million yuan, down 5.6% from the same period last year. We believe that on the one hand, the implementation of some projects affected by the epidemic has been delayed, and the pace of business development has been slightly slower than expected; on the other hand, due to the impact of the epidemic, some physical stores in North America have been temporarily closed, and sales have been affected to a certain extent. The fair value of equity investment increased in the third quarter, mainly due to the listing of Beijing Capital online Technology Co., Ltd., a shareholding company, on IPO on Shenzhen Stock Exchange on July 1, 2020. The company's Q3 quarter net profit was 31.83 million yuan, an increase of 29.4% over the same period last year, indicating that the company's overall profitability has increased.
Enter the core city IDC track to help the company's overall performance growth. The company set up Shanghai Naisheng as a joint venture with NTT Com Asia, a leading global communications company, to cut into the field of IDC/ cloud computing, with 1000 cabinets in the first phase and 3000 cabinets planned for the second phase, targeting high-end multinational customers. In the future, the company is expected to make full use of the brand influence of NTT, high-quality customer resources and global marketing ability to complete the construction of IDC+VPN networking products and solutions, and enlarge the company's own business scale. Through the integration of the rising of M & A companies, the introduction of international business capacity, and further optimize the company's profitability.
Overseas business has a wide layout to create high-quality Chinese operators. With the steady progress of the company's overseas business, its new Chinese TV platform iTalkBB brings Chinese TV programs to Chinese in North America through mobile and web players, and introduces smart home security services to the Chinese market in North America and Canada, mainly to provide security for overseas Chinese home life. The product will provide users with integrated intelligent humanoid identification, video cloud storage, anti-theft alarm and other features, as well as intelligent home control system; in addition, the company has obtained the scarce MVNO license of Chinese companies in North America, and customers travelling to and from China and the United States can use the American package and the Chinese package with a SIM card, which is expected to grow significantly in the future.
Risk factors: increased competition in the enterprise cloud communication industry, limited resources for IDC expansion, and higher-than-expected impact of overseas outbreaks.
Investment advice: as the leader of enterprise cloud communications, the company is expected to usher in performance growth under the two-wheel drive of IDC business and overseas business in the future. This year, due to the listing of the equity company Capital online IPO, the fair value of corporate equity investment has increased significantly, so it is adjusted to 0.38 EPS yuan in 2021 (the original forecast is 0.16 pound 0.18 yuan), and the EPS forecast for 2022 is 0.20 yuan, maintaining the "overweight" rating.
