Recommendation logic: the company is a multi-business group company with equal emphasis on "manufacturing + marketing + investment". Each business plate shows a good trend of development and is currently at the golden inflection point. In response to market changes, actively carry out strategic layout, increase short video, AI marketing investment, continue to promote the market, is expected to further increase market share. The company is expected to achieve an average annual compound growth of 31% in the next three years.
Digital marketing: forward-looking layout short video, AI marketing. With the rapid development of 5G, big data and artificial intelligence technology, great changes are taking place in the digital marketing industry. Unicorn marketing platforms continue to emerge, profoundly changing the industrial pattern; new forms of entertainment such as short videos and live streaming have made live streaming and social e-commerce popular, and the digital marketing industry will maintain an average annual growth rate of more than 20% in the future. The company's forward-looking layout of the MCN short video track is currently one of the top agency companies in Jinri Toutiao. Kuaishou Technology platform business has also achieved 200% growth, and has become the core partner of Tmall Beauty plus Fast Consumer. The company has established a short video base in Chongqing, which can meet the company's short video shooting needs, and has applied AI artificial intelligence and AR augmented reality technology to e-commerce live streaming to create an upgraded live broadcast product, Fantasy Live. We believe that the company has a leading layout and is expected to take the initiative in the follow-up competition.
Manufacturing industry: increase market development and technological innovation. The company is a leading pump machinery manufacturer with outstanding technical capabilities and rich customer resources. The company's products cover more than 140countries and regions around the world, and have LEO brand distributors in 128countries and regions. As the impact of the epidemic weakens and large-scale infrastructure projects begin, the company's manufacturing sector is expected to fully benefit and enter the fast track of development.
Investment business: enter the continuous harvest period. The company actively distributes the investment direction of emerging industries and invests a large number of high-quality target enterprises. Li Auto Inc., one of the bidders, was successfully listed on NASDAQ at the end of July 2020. the company confirmed that the fair value change income was 3.6 billion yuan, which had an impact on the net profit of about 2.7 billion yuan. In addition, Xinjing applied for Kechuangban IPO in June this year, and it is expected that it will be held in the near future; invested enterprises such as blue orange e-commerce, Zhejiang Danong, foreign good home and other invested enterprises will also achieve listing IPO, which is expected to bring continuous cash inflows to the company.
Profit forecast and investment advice. It is estimated that the EPS from 2020 to 2022 will be 0.49 yuan, 0.08 yuan and 0.10 yuan respectively, and the net profit of homing will maintain a compound growth rate of 31% in the next three years. The company has made certain achievements in different fields such as "manufacturing", "marketing" and "investment". At present, it is in a golden position. It is suggested to focus on it, cover it for the first time, and give it a "hold" rating.
Risk hints: the risk of industrial policy change, the risk of intensified market competition, the risk of customer loss, the risk of less than expected business development, the risk of core brain drain.