Main points of investment
Business treasure: B2B supply chain financial service provider. The company is a leading B2B operator in China, starting with professional websites such as chemical industry and textile, and gradually developing into an integrated service provider integrating information flow, logistics and capital flow. The "commodity supply chain integrated service ecosystem" created by the company has initially taken shape. It includes e-commerce platform (business treasure), trading platform (net Sheng large), data platform (business association), payment platform (business pass), warehousing logistics platform (net Sheng Yunze logistics network), financing platform (net Sheng financing), risk control platform, credit platform, consumer finance platform (Hangzhou Bank consumer finance), cross-border e-commerce supply chain platform (know-it-all). Formed the whole industry, the whole industry chain upstream and downstream "closed-loop" service system.
E-commerce platform: "small portal + alliance" mode. The company has developed from a single professional vertical website portal to a "small portal + alliance" Internet model. At present, the business treasure website covers about 100 self-management and strategic cooperation sub-stations, about 200 secondary industry e-commerce portals, and about 3000 alliance website members of the domestic professional e-commerce industry cluster. TOOCLE 3.0 (Business Treasure) is a standard, secure and efficient global trade information exchange center, providing standardized global release of trade information, cross-border trade services, supply chain financial services, etc.
Data advantage: business clubs establish high barriers. The main body of the company's data business is the business club. Business Society is a commodity data service platform built by the company based on the data resources of its chemical industry network, textile network and medicine.
At present, hundreds of database groups of commodities covering the upper reaches of the national economy, including energy, chemical industry, textile, non-ferrous metals, iron and steel, rubber and plastics, building materials, agriculture and vice-versa, have been established, and they have become data institutions for tracking, analyzing and studying commodities. The accumulated data of the business club has opened up the upstream and downstream production chain and has comprehensive industry ecological data, which not only sets up a high barrier for the company's business, but also lays a solid foundation for the development of supply chain financial business.
Financial realization: the rapid development of supply chain finance. In the financial strategy, the company's Internet financial service platform-Wangsheng financing, plays an important role in it. At present, the supply chain-based financing products launched by Wangsheng Finance and Cooperative Bank for small and medium-sized enterprises are running smoothly, mainly providing financing guarantee services for online trading customers on the company's trading platform. According to the published data (part of the data) on the amount of credit granted by the online financing platform on the company's official website, the company's monthly credit line has shown a rapid growth trend since the beginning of 2017. In February 2018, the credit line of Wangsheng financing platform was 345 million yuan, compared with 55 million yuan in the same period in 2017, with a rapid growth rate.
Profit forecast and investment advice. We believe that Shengbao is the leader of domestic B2B e-commerce, multi-domain, cross-platform e-commerce model for the company to accumulate a large number of small and medium-sized B-end customers, the data advantage of the business club lays a solid foundation for the development of financial business. The supply chain financial business represented by Wangsheng financing platform is developing rapidly. We estimate that the return net profit of the company from 2018 to 2020 is 19 million yuan / 91 million yuan / 177 million yuan respectively, and the EPS is 0.08 yuan / 0.36 yuan / 0.70 yuan respectively. At present, the PE corresponding to the stock price is 631,133,68 times respectively. Considering the company's rapid growth in the next two years, from the perspective of PEG, the company's PE in 2018 corresponds to the growth rate in the next two years, and the PEG is less than 1. Cover for the first time, giving a "buy" rating.
Risk prompt event: the low expected risk of the business development of Wangsheng financing platform; the risk that the bad debt rate of financing platform is higher than expected; the risk of declining market share of e-commerce.