Main points of investment

The trio released the mid-2023 report. In the first half of 2023, the company's operating income was 2.193 billion yuan, up 7.89% over the same period last year; the net profit returned to the mother was 217 million yuan, up 0.55% from the same period last year; and the non-return net profit was 214 million yuan, an increase of 32.97% over the same period last year. In the second quarter, the company achieved operating income of 1.262 billion yuan, an increase of 10.93% over the same period last year, and its net profit was 76 million yuan, down 51.17% from the same period last year. It deducted 131 million yuan of non-return net profit, an increase of 27.59% over the same period last year.

Deep ploughing stock customers, steady growth: in the first half of 2023, the gross profit margin of the company's main business was 21.21%, an increase of 5.49pct over the same period last year; the rate of sales expenses was 6.93%, an increase of 1.85pct; the rate of management expenses was 1.22%, an increase of 0.15pct over the same period last year; and the rate of R & D expenses was 1.10%, an increase of 0.21pct over the same period last year.

1) promote central media advertising cooperation: in the first half of 2023, the company deeply bound telecom operators, finance and other industry customers through the brand advertising resources of CCTV and other head media feature programs. 2) continuous efforts of KA customers: the company continues to use excellent advertising and brand communication services to pry the marketing budgets of head advertisers such as China Resources Group, China Mobile Limited, Yili and head car customers SAIC GM Buick, FAW Toyota, Dongfeng Honda, FAW Audi, Dongfeng Fengshen, FAW Volkswagen and so on.

Seize the opportunity of new technology and practice high-quality development. 1) wide marketing channels: the company's business radiates 31 provinces and cities, including North, Shanghai, Guangzhou and Shenzhen, and the offline campus media network covers more than 800 universities across the country; at the same time, it has established good business cooperation with many well-known Internet media. to achieve multi-scene, wide coverage and efficient dissemination of customer marketing information. 2) the core customer base is rich: the company has been serving high-budget customers in important areas of the national economy as the business service object, and has accumulated good business sustainability for the leading customers in the fields of finance, fast consumer, telecom operators, Internet and automobile. 3) AI mathematical intelligence empowerment:

The company and iFLYTEK join forces to jointly enhance smart marketing capabilities through AI, jointly develop multimodal intelligent marketing tools based on next-generation artificial intelligence technology, explore intelligent marketing, and continuously expand marketing boundaries. 4) data factor pioneer: the company actively responded to the policy of "digital economy leading the development of real economy", carried out strategic cooperation related to "big data Trading platform" with Guiyang Digital Exchange, and took the lead in exploring the cultivation of data factor market in the country. It is expected to open a new growth curve of data element transactions. 5) the incentive goal is clear: the company set the performance evaluation target of not less than 1.56 billion yuan in net profit in 2025, and the development goal is clear. 6) sufficient return on investment: the company maintained a dividend ratio of more than 40% from 2019 to 2021, and paid out 223 million yuan of cash dividends again in June 2023, with a dividend ratio of 30.30%.

Earnings Forecast: we slightly adjust the profit forecast and expect the company's 2023-2025 net return profit to be 10.19pm 13.22pm 1.554 billion yuan, and the PE of the previous share price (August 15, 2023) is 6.6 times 10.1kg shock, maintaining the "overweight" rating.

Risk hints: market competition aggravating risk, customer concentration risk, media resource procurement price rising risk, brain drain risk, business performance seasonal fluctuation risk, comprehensive gross profit margin decline risk, industry policy change risk.