Performance summary: according to the semi-annual report of 2021, the company achieved 1.42 billion yuan in revenue in the first half of 2021, an increase of 7.84% over the same period last year; the net profit was 606000, deducting the non-return net profit of-3.819 million yuan, down 109.15% from the same period last year. The main adjustment items of non-recurrent profit and loss are government subsidies, tax incentives and recovery of impairment provisions for BAIC Magic Speed Automobile sales Company.
Retail terminal management business is growing steadily, driven by both online and offline channels. Revenue from retail terminal management business increased by 27.99% to 554 million yuan over the same period last year, accounting for 38.99% of total revenue. The company uses online and offline channels to help customers improve product sales and enhance user stickiness. Offline, the company actively uses 36 branches and 268 roadshow lines throughout the country to help customers achieve sales growth and market share expansion. at present, the company's implementation network covers more than 300 prefecture-level cities and more than 1400 county cities across the country. the project implementation team has a total of more than 14000 people. On the online side, the company helps brand customers train online live sales and community marketing operation teams to improve online sales.
Digital retail business is on the rise slightly, while ToC business is growing rapidly. 21H1, the company's digital retail revenue increased 5.03% year-on-year to 346 million yuan, accounting for 24.37% of total revenue. Among them, the business income of B2C business increased by 67.44% to 72 million yuan over the same period last year, mainly due to the rapid development of the company's business on the Pinduoduo platform. The company helped 47 brands lay out on the Pinduoduo platform, operated 29 stores, and achieved a substantial increase in ToC revenue.
21H1's B2B business has achieved business income of 274 million yuan. While maintaining stable cooperative relations with existing customers, such as Mars Wrigley, Nestle, Gregor, Pepsi, RIO Ruiao, etc., the company has actively expanded new customers, such as Mead Johnson, living Beverage, Abbott Laboratories and other brands, constantly improving the diversity of cooperative brands, and has achieved mother-to-child coverage, food and beverage, daily cosmetics and other categories.
The main reasons for the decline in net profit are as follows: 1) the expense rate has increased: 21H1's R & D expenses, sales expenses and management expenses have increased by 21.97% compared with the same period last year. 2) Gross profit margin declined: competition in the marketing services market intensified. Gross margins of 21H1 interactive display and retail terminal management decreased by 5% and 4% respectively, and the company's overall gross profit margin dropped to 13.69% from 16.34% in the same period last year. 3) downward revenue from sub-business: revenue from 21H1 brand communication business and interactive display business decreased compared with the same period last year, mainly due to the restriction of offline activities caused by the epidemic and cautious customer marketing.
Profit forecast and investment advice. It is estimated that the EPS from 2021 to 2023 is 0.06,0.38,0.62 yuan respectively, and the corresponding PE is 200,32 and 20 times respectively. Considering the resumption of offline marketing activities in the post-epidemic era, we maintain the investment rating of "holding" of electro-acoustic shares.
Risk tips: the risk of intensified market competition, the risk of changes in downstream customer demand, the risk of less than expected business development, the risk of core brain drain.
