The growth rate of performance in 2020 exceeded the forecast limit, and the main increase in the contribution of Internet marketing was that the company realized revenue of 10.67 billion yuan and net profit of 123 million yuan (corresponding to fully diluted EPS of 0.17 yuan), up 23% and 61% respectively over the same period last year, higher than the upper limit of performance forecast (the company's performance forecast increased by 31% Mel 58% compared with the same period last year). The rapid growth of revenue and profits mainly benefited from the growth contribution of Internet marketing revenue (revenue reached 9.77 billion yuan in 2020, accounting for 91.5% of revenue, an increase of 26.6% over the same period last year). Of this total, Q4 achieved a revenue of 2.98 billion yuan in a single quarter and a net profit of 22 million yuan, an increase of 10.1% and 387.1% respectively over the same period last year.
Raise funds to increase the layout of marketing industry chain
The company announced that it plans to issue stock financing to no more than 35 specific investors with a scale of no more than 1 billion yuan. Invest in full-link intelligent advertising content production platform (500 million yuan), advertising production factor collection and trading system (200 million yuan) and supplementary liquidity (300 million yuan) We believe that information streaming media, represented by short videos, is gradually becoming a new growth point of digital marketing. Since 2019, the company has focused on the layout of short video business and carried out in-depth business cooperation with platforms such as Douyin and Kuaishou Technology. If this increase can be successfully landed, it will help to further enhance the company's business strength in short video content production, marketing services and other areas.
Investment advice: maintain the profit forecast, maintain the "overweight" rating we maintain the profit forecast, the company is expected to dilute EPS=0.21/0.26/0.30 yuan in 21-22-23, the current share price corresponds to PE=22/19/16x. We continue to be optimistic about the prospects of the short video and Internet industry. driven by the new ecology of live e-commerce, MCN and other industries, the marketing service industry is ushering in a new growth cycle, and the business model and industrial chain value are expected to be reshaped. The company's short video and related business is expected to continue to layout, the current valuation and market capitalization are historically low, continue to maintain the "overweight" rating.
Risk hint: macroeconomic fluctuation risk, performance below expectations and other risks.