The company's superfiber main business capacity release, return to high growth; Weifutong's mobile payment service business in the mobile payment blowout development into an explosive period, began and significantly thickened the company's performance, continue to strongly recommend!
Event: the company released a report for the third quarter of 2017 that its operating income in the first three quarters was 1.732 billion yuan, an increase of 87.16% over the same period last year; the non-net profit deducted from its mother was 178 million yuan, an increase of 225% over the same period last year; of which, revenue in the third quarter was 732 million yuan, up 144.43% from the same period last year; the non-net profit deducted by its mother was 100 million yuan, an increase of 597.75% over the same period last year.
It is expected that the net profit of Weifutong's consolidated company will rise sharply for the whole year.
In addition to the high growth of the main industry of superfiber, Weifutong also shows a substantial increase in its performance. With the launch of new production capacity, the development of sales channels and the improvement of product research and development speed, the production and sales of superfiber products have increased significantly, with a performance growth rate of more than 60%. In terms of the main business of mobile payment services, on June 23, the equity transfer of Weifutong was completed, officially becoming a 100% holding subsidiary of the company. In the first half of the year, Weifutong achieved revenue of 171 million yuan and net profit of 87 million yuan. we expect Weifutong's net profit to contribute more than 60 million yuan in the third quarter, with its own rapid growth and strong thickening of the parent company's performance. Weifutong's performance commitment in 2017 is 157 million yuan, and we expect that the contribution of the performance is very likely to exceed expectations.
The explosive growth of mobile payment services strengthens the performance driving force. Weifutong Bank covers a wide range of areas, and the company's business has also entered an explosive period driven by the blowout development of mobile payments. As the main partner of mainstream third-party payment such as WeChat Pay, the company's transaction volume and transaction volume have increased multiple year on year, and the average daily transaction volume has increased steadily compared with the previous year. Banking cooperation continues to make breakthroughs, overseas continues to expand territory, opened the first cross-border payment channel of Weifutong service, and invested jointly with Global Blue, the largest tax rebate company in the world, WeChat Pay acceptor Eurolink of France, and launched a comprehensive solution for overseas merchants with the integration of payment, tax rebate and marketing. Weifu Tong is actively innovating its business, with an average monthly compound growth rate of more than 50%. Overseas Wechat, Alipay and QQ Wallet have broad payment prospects, which also constitute a new fulcrum for the company's payment service business.
Maintain the "highly recommended-A" rating: the company's superfiber main industry capacity release to maintain high growth, Weifutong has been developing new business recently, and the logic of "based on payment, beyond payment" is being realized. We believe that the company is different from ordinary payment companies. the growth space and business model are at a significantly leading level. From 2017 to 2019, the EPS is expected to be 0.58,0.74,0.92 yuan respectively, maintaining the "highly recommended-A" rating.
Risk hint: the management risk of dual-main business operation; the risk of Internet financial supervision.
