Event description
The company forecasts that the net profit of returning home in the first half of 2018 will be 400-440 million yuan, an increase of 83.38% 101.71% over the same period last year. The growth is mainly due to the continued rapid growth of Internet media business and digital marketing business.
Event comment
The company's business growth is still strong month-on-month, overseas subsidiary Spigot has the core competitiveness, driven by increased investment and algorithm optimization, there is still great potential for growth. 1) the 2018Q1 net profit of the company is 201 million yuan, and the estimated net profit of 2018Q2 is between 1.99 yuan and 239 million yuan, which is estimated to be 129.56% year-on-year and 8.96% month-on-month, which is much higher than the growth rate of 2018Q1 (63.41% year-on-year and 2.03% month-on-month), which proves that the growth momentum of the company is still strong. 2) Spigot algorithm technology is powerful and has maintained growth since its establishment in 2011. The lack of rapid expansion of Spigot in the early stage is mainly due to financial reasons. After the acquisition of the company, the parent company increased investment, Spigot business expanded rapidly, and there is still great potential for growth in the future. 3) in the future, Spigot will expand the mobile side, expand the mature business model of the PC side to the mobile side, and contribute new increments to the company's business.
Digital marketing business and domestic media business are mainly contributed by Falcon Network and reply Information, and are expected to maintain steady growth. 1) Falcon Network has become a leading emerging mobile advertising technology company driven by big data, algorithms and other technologies in China, with promised profits of 117 million, 152 million, 183 million and 2016-2017 respectively in 2016-2018, with performance completion rates of 103% and 105% respectively. 2) Yi Fu Information is committed to digital integrated marketing, providing all aspects of digital marketing and technology solutions for brands and enterprises. The promised profits from 2016 to 2018 are 46 million, 59 million, 71 million and 2016-2017, respectively. The performance completion rate is 102%.
Profit forecast: the net profit of the company from 2018 to 2020 is 850 million, 1.115 billion and 1.406 billion respectively, and the EPS is 0.88,1.16,1.46 yuan respectively, and the corresponding PE is 14.17,10.80,8.57 times respectively.
Risk tips: 1. Risk of postponement of the company's core products
two。 The development of the game industry is not as expected.