1. Leading enterprise in the field of financial PR: Since its establishment in 1996, the company has accumulated 20 years of rich experience in the financial PR industry. It is the only listed financial PR company in the world. The company has a five-in-one service platform, covering financial PR, investor relations, international roadshows, financial printing, capital market brand promotion, etc., and can provide a full range of services for listed companies.
2. Competitive advantage: The company has maintained an absolute leading market share in IPO projects, with a market share of over 75% for 5 consecutive years. Since 2016, Haotian Finance's market share in Hong Kong's IPO projects has reached 90%. The top ten Hong Kong IPOs are all Haotian customers. In the non-IPO business, more than 90% of IPO customers will become long-term customers of the company, bringing a stable source of revenue to the company.
3. Growth momentum: In addition to the growing number of IPO customers and long-term customers, new growth points come from prospectus printing business, A-share IPO business, cross-market investor relations and public relations value-added business brought by the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and explore local and global joint ventures and mergers and acquisitions.
4. Financial situation: The company's performance has continued to grow steadily over the past few years. In the 2014-2016 fiscal year, revenue had a CAGR of 16.13% and net profit had a CAGR of 24.84%. Profitability is strong, and gross margin has remained around 50% for three consecutive years.
Net profit increased year by year, from 33.5% in 2014 to 38.7%.
5. M&A plan: The company is seeking opportunities for upstream and downstream mergers and acquisitions.
6. Dividend policy: Since its listing, the company has maintained an attractive dividend policy. The total payout rate for the year ended March 31, 2016 was 60%.
7. Summary: The company is a leading enterprise in the financial PR field in Hong Kong and has an absolute leading market share in the financial PR industry in Hong Kong. The company's “five in one” business platform and profit model allows the company to have steady profitability and growth capacity in both bull and bear markets. The company has maintained a high dividend rate since it went public, and it is expected that it will still maintain a dividend rate of about 60% in the future. Currently, the stock price corresponds to 9 times the predicted PE for FY2017. Valuation is attractive, so it is recommended to focus on it.