Event description
On October 27, 2022, the company released its performance report for the first three quarters of 2022. In the first three quarters of 2022, the company realized revenue of 46.286 billion yuan (year-on-year + 97.17%), net profit of 683 million yuan (+ 101.57%) and non-return net profit of 621 million yuan (+ 102.81%). The growth rate of the profit side exceeds the upper limit given by the previous performance advance announcement.
Event comment
The company's 2022Q3 realized income of 18.392 billion yuan (year-on-year + 94.81%), net profit of 255 million yuan (+ 108.38%), and non-return net profit of 237 million yuan (+ 122.67%). The growth in performance is mainly due to the increase in revenue from online commodity trading, which may also play a leading role in the economic downturn. The biggest bright spot in this financial report is that profit growth has exceeded revenue growth for the first time, which may be a sign that the company's business has shown economies of scale.
On October 10, 2022, this year's double Ten Industry E-commerce Festival has ended, with a record collection of orders, a year-on-year growth rate of 90.21% compared with the same period last year. We believe that the company continues to act actively in the context of repeated outbreaks, once again demonstrating the influence of the company's brand and industry.
We continue to be optimistic about the investment opportunities of the Internet track in the industry where the League of Nations is located, and repeatedly emphasize the strong shares brought about by the superiority of the League's own business model. On October 27, 2022, the company issued the results announcement for the first three quarters, the profit growth rate exceeded the revenue growth rate for the first time, the scale effect may be highlighted, and continue to be optimistic about the logic of the company's future development:
1. Emphasize the industry Internet industry β. The consumer Internet dividend will be exhausted, and the industrial Internet is the next investment outlet. The company's many platforms belong to the industrial e-commerce platform, which is an important part of the industrial Internet. At present, the overall penetration of the industry is still in a low position, the League of Nations as the head company will fully enjoy the industry dividend.
2. Emphasize the strong α of the League of Nations itself. The League of Nations has ploughed the industrial chain for many years and has rich industrial accumulation. Since entering the trading link, the business model of Duoduo platform has gone through several price upward / downward cycles, and its rationality and superiority have been repeatedly verified. At present, Duoduo platform still has a lot of room for horizontal and vertical development. At the same time, the company actively layout Guolian cloud business, steadily promote the landing of cloud factories, and empower traditional enterprises up and down the industrial chain.
Industry β + stock alpha, the company's future high performance growth has a high degree of certainty. With reasonable consideration of the growth rate of various platforms and the landing speed of cloud factories, we predict that the company's net profit from 2022 to 2023 will be 1.037 billion yuan and 1.768 billion yuan respectively, corresponding to 59.47 times and 34.89 times of PE, maintaining the "buy" rating.
Risk hint
1. The unstable factors caused by the epidemic repeatedly.
2. Industry competition aggravates the risk.