Event: the company issued a three-quarter report in 2022, with revenue of 52.788 billion yuan (YOY+3.15%), net profit of 123 million yuan (YOY+12.56%) and net profit of 109 million yuan (YOY+11.59%) in the first three quarters. Q3 realized revenue of 14.842 billion yuan (YOY+11.09%) and net profit of 65 million yuan (YOY+190.0%) in a single quarter.
The smart terminal industry is booming, and revenue growth comes from e-commerce platforms. In the first three quarters, the company had revenue of 14.842 billion yuan (YOY+11.09%) and net profit of 123 million yuan (YOY+12.56%).
The increase in revenue is mainly due to the increase in revenue from the e-commerce platform and the steady expansion of the new business model, resulting in an increase in net profit.
With the rapid development of the company's digital retail business, its chain brand "" has opened 35 "Yi Xiu" MALL stores; "Neng Liang e-commerce" continues to improve its intelligence level, covering Tmall, JD.com, Pinduoduo, Douyin, Kuaishou Technology and Wechat six platforms, the rapid growth of sales promotes the company's revenue.
The distribution business has expanded steadily and the channel advantage has been further consolidated. With rich channel resources, strong integration ability and excellent customer relationship, the company's intelligent terminal distribution business has expanded steadily in the face of the complex and changeable global environment. The company is the core agent of Apple Inc in China and maintains a close cooperative relationship with Huawei. In terms of Samsung business, the company occupies nearly 60% of the domestic market share. The company's digital distribution business has gradually expanded by virtue of rich channel resources and excellent customer relations.
In December 2021, the company announced the joint acquisition of Dongguan Weike with Dongguan Financial Control. Through the acquisition to achieve the extension of the company to the upper reaches of the mobile phone industry chain, steadily promote the development of overseas business, consolidate the company's channel advantages, and enhance the company's core competitiveness.
Increase information east communication, further consolidate the channel. Increase the capital to Xundong by 120 million yuan, and subscribe to Xindong by 120 million yuan. After the completion of the capital increase, the proportion of shares held by the company will be 40%, and Xundong's main business will be the distribution business of communication products. The purpose of this capital increase is to strengthen the connection between the company and the upstream and downstream of the industrial chain, so as to help the company expand the market, create an efficient omni-channel social marketing network, and further improve the strength of the company.
Take advantage of the channel to actively layout the sales business of new energy vehicles. Tianyin Communication, a wholly-owned subsidiary, has increased its business scope, including licensed business items: used car sales; motor vehicle repair and maintenance; insurance and agency business. General business projects to increase new car sales; auto parts retail; auto parts wholesale; Internet sales (except for the sale of goods that need permission); new energy vehicle conversion facilities sales; new energy vehicle production test equipment sales; new energy original equipment sales; motor vehicle charging sales; charging control equipment rental; distribution switch control equipment sales.
With the approval of Shenzhen Market Supervision Administration, the change of business scope has been completed.
Relying on its own leading channel advantages and good customer relations, expanding the scope of automobile sales business will help to improve the company's overall revenue and profitability in the future.
Investment advice. The company is the leading domestic intelligent terminal distributor, with omni-channel advantage, we are optimistic about the rapid growth of the company's new retail business and the growth of automobile distribution business. It is estimated that the income in 2022-2024 is 75.41 billion, 83.11 billion and 92.36 billion, the net profit of homing is 232 million, 287 million and 328 million, and the corresponding PE is 40-32-28. Coverage for the first time, giving a "overweight" rating.
Risk hint: the smartphone industry remains in the doldrums; the car sales business is not as good as expected; and competition in the industry intensifies.