Company overview
The company is one of the earliest participants in providing online marketing services in Singapore and has been helping companies set up web pages and reach potential customers through online platforms since June 2005. Providing search engine marketing services, creative and technical services and social media marketing services to customers in a variety of industries, the company is the market leader in online marketing services in Singapore, with a market share of about 7.2% in 2018. Over the years, the company has expanded its business coverage to include Malaysia and has grown into an award-winning group with more than 900 active customers during the track record period.
FY2016-FY2018, the company's revenue is Singapore $17.2 million, 20.7 million and 26.6 million respectively, and the gross profit margin is 36.4%, 34.5% and 39.1% respectively. Excluding listing expenses, the company's adjusted net profit is Singapore $2.86 million, 3.24 million and 3.99 million respectively, and the net profit is 16.6%, 15.6% and 21.8% respectively.
Industry status and prospects
Companies in Southeast Asia are undergoing a transition to digitization, as well as Chinese companies seeking overseas expansion, resulting in a growing demand for online marketing services. The total marketing expenditure of Singapore's overall marketing industry increased from US $828.4 million in 2013 to US $1,117.5 million in 2017, with CAGR of 7.8%, and will continue to rise by 5.4% CAGR in the next few years, reaching US $1551.7 million in 2033. Overall, Singapore's marketing spending has been rising and the trend is expected to continue, especially as the market is increasingly aware of the efficiency of online marketing, which is expected to record the highest growth rate among the four types of marketing methods.
Advantages and opportunities
Ranked first among all online marketing service providers in Singapore
The customer base is extensive and solid, and the retention rate is high, and establish a long-term stable relationship with suppliers.
Weakness and risk
Any interruption in the services provided by Google, the company's largest supplier, may affect business operations and financial performance.
Companies rely on medical customers, and changes in advertising laws or regulations or professional codes that restrict the ability of medical customers to advertise may significantly reduce the company's profitability and profitability.
Investment valuation
Based on the price of the prospectus (HK $0.65-HK $0.70), the price-to-earnings ratio of the company for fiscal 2018 is 15.7x-16.9x and the valuation is reasonable. Taken together, we give the Genesis Group holding IPO a special rating of "5".