Recommendation logic: the company is the first A-share experience marketing service provider listed independently, covering more than 1500 cities across the country, with a significant competitive advantage. With the recovery of the advertising market and the growth of the automobile and fast consumer goods market, the company's overall business performance is improving. The company actively arranges new retail business, doubles its growth and has great potential for development.
The vitality of the advertising market returned, and the market for automobiles and fast consumer goods grew steadily. The domestic epidemic situation has gradually improved, the prevention and control of the epidemic situation has become normal, and the advertising market has gradually returned to the pre-epidemic level. Benefiting from the policy drive, the auto industry returned to the upward cycle again after three consecutive years of decline, with car sales growing by 0.1% month-on-month and 12.5% year-on-year in October. The growth rate of the FMCG market slowed, but maintained a steady growth trend. The company has a leading business scale and brand effect in the vertical industry, and the downstream recovery will lead to the rapid development of the company's related business.
Offline marketing value revaluation, experience marketing in line with the industry pain point. The cost of getting customers online has increased, and offline marketing has been re-valued by brand owners. Experiential marketing can effectively reach consumers, help brand owners to achieve a closed loop from marketing to sales, superimposed VR technology into the field of consumption, experiential marketing may become a new growth point of the industry. As a leading enterprise of experience consumption, it is expected to fully benefit.
Deep ploughing experience marketing, vigorously develop digital new retail business. At the beginning of its establishment, the company has been deeply engaged in experiential marketing, with an executive network covering more than 1500 cities across the country, and has built a strong competitive barrier. With the help of the existing advantages, the company actively expands its digital marketing business upstream and infiltrates the sales business downstream. The company set up a digital retail department to cooperate with industry giants such as BABA, JD.com and Pinduoduo to help a number of large-scale FMCG customers increase sales through online channels. The company's digital retail business is developing rapidly, with revenue of 330 million yuan in the first half of 2020, an increase of 102% over the same period last year.
Science and technology enable the combination of "camp" and "sales", and the whole link layout will expand the business ecology. The company actively arranges offline digitization to enhance accurate marketing ability, precipitate huge amounts of data, and help brands to achieve accurate delivery. In the future, the company will introduce more new MarTech technologies to connect online and offline, and promote the "camp" in an all-round way through data and technology.
The digital intelligence strategy, which is organically combined with "sales", can achieve broader consumer access through private domain traffic, and achieve low-cost, low-risk and high-efficiency brand incubation.
Profit forecast and investment advice. It is estimated that the net profit from 2020 to 2022 is 160 million yuan, 240 million yuan and 280 million yuan respectively, and the corresponding EPS is 0.37 yuan, 0.56 yuan and 0.67 yuan respectively. The company is the first experience marketing company to be listed independently, with deep competition barriers and giving a "hold" rating for the first time.
Risk tips: the risk of intensified market competition, the risk of changes in downstream customer demand, the risk of less than expected business development, the risk of core brain drain.
