Brief comment on performance
On October 27, the company announced that the revenue in the first three quarters of 2020 was 376 million yuan, up 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; the revenue of Tencent Q3 was 127 million yuan, up 8.37% from the same period last year, and the net profit of returning to the mother was 20 million yuan, down 23.24% from the same period last year.
The overall gross profit margin in the first three quarters was 66.20%, down 8.99% from the same period last year. Q3 single-quarter gross profit margin was 63.60%, down 10.03% from the same period last year. It is mainly due to the increase in the cost of effective advertising flow.
Business analysis
The impact of the epidemic was gradually digested, and Q3 performance returned to steady growth. The performance returned to steady growth in the third quarter, the impact of the epidemic was gradually digested, the company's effectiveness advertising service capacity continued to improve, new access to Toutiao, Qutoutiao and other traffic platforms.
Create a "daily counting platform" to deepen the competitive advantage of the platform. On September 26, the company announced that it intends to issue no more than 40.01 million shares and raise no more than 1.1 billion yuan to be used for the construction of the daily governance platform. The data intelligent operating system is committed to secure, intelligent, real-time, visual data governance and use. It is helpful for the company to enrich basic data, precipitate the ability to output data, upgrade the operation of data in subdivided scenarios, and further deepen the competitive advantage of the platform.
The continuous development of public and risk control services is expected to become a new source of growth. During the reporting period, the company completed strategic investments in Zhejiang data Security Service Co., Ltd., Zhejiang Expressway Information Engineering Co., Ltd., and accelerated the layout of new products related to public and risk control. According to the investigation report on the Development of China big data by the China Academy of Information and Communications, the overall scale of China's big data industry is expected to exceed 1 trillion yuan in 2020. In the future, the demand for big data applications in various vertical segments of industries will continue to grow, and new products related to public and risk control are expected to make breakthroughs and become a new starting point for the company's rapid revenue growth.
Investment suggestion
The company steadily improves the profitability of advertising services, actively arranges the construction of big data-related industries, continues to develop new products in the field of public and risk control, and looks for new growth points. In the first half of the year, the company's performance was greatly affected by the epidemic, and it is expected that the speed of data realization will slow down. The net profit of 2020amp 20211b in 2022 will be reduced to 1.47max 240,345 million yuan, a downward adjustment of 101% Unix 96%, corresponding to 78.58X/46.77X/33.68X E and 0.37 EPS 0.62 RMB 0.86 respectively, maintaining the "Buy" rating.
Risk hint
Data security regulatory risk; macroeconomic downside risk; technical personnel loss risk.
