Yuanlong Yatu (002878): Leading promotional product development path clear New media MCN marketing service blessing growth
Event: On February 25, 2020, the company released its 2019 annual performance report, realizing operating income of 15.
95 ppm, a five-year increase of 5.
43 trillion, an increase of 51.
63%; total profit realized1.
51 ppm, an increase of 31 in ten years.
23%; net profit attributable to shareholders of the parent company1.
16 ppm, an increase of 24 in ten years.
In Q4 2019, it achieved revenue of 5.
6.6 billion, an annual increase of 51.
9%, achieve net profit attributable to mother 0.
3.4 billion, an annual increase of 31.
Comments: The company’s three conventional businesses, gift supply, marketing services and new media marketing, contributed major results, further optimized the revenue structure, and increased the proportion of digital marketing revenue and new media marketing revenue.
The company’s three major conventional businesses are developing well, with core customers’ income and profits continuing to increase and a comprehensive gross profit margin of 22.
07%, down 2 every year.
27%, due to the low gross profit of new account opening orders.
The company’s business structure optimization, digitalization and new media marketing revenue share, from 19 last year.
11% rose to 32 in 2019.
The market has strong demand for 杭州夜网 gifts and digital marketing, with gifts and gifts revenue reaching 9.
98 ppm, an increase of 19 per year.
88%; revenue from services such as digital marketing reached 2.
11 ‰, an increase of 50 per year.
The franchise business is the franchised merchandise business of the Beijing 2022 Winter Olympics, and has formed a certain scale of revenue.
The company’s new media marketing business is expanding at a high speed, and the synergy with Qianma Network is expected to continue to expand.
In 2019, Qianma’s network developed rapidly, high-quality new customers continued to be introduced, the business volume of customers in hand continued to grow, and new media marketing business revenue3.
110,000 yuan, a year-on-year increase of 69.
Qianma Network has accelerated the introduction of talents in creativity, data, intermediary management, and Internet celebrity resources to extend to the upstream MCN of the industry chain.
Qianma cooperates with the group to innovate brands, resources and marketing advantages, and is expected to participate in the rapid growth of the MCN industry.
The company ‘s Olympic merchandise has started to sell live online celebrities, and the retail market is expected to accelerate. Corporate customers such as the company ‘s Winter Olympics are expected to become regular gift customers.
In addition, the company’s own brand “Singularity”, in addition to the layout of 3C products, also extends to multi-category creative products, with broad space.
Matching with the promotion services of major customers such as the Fortune 500, MCN expands the company’s value chain and is optimistic about the company’s growth.
The company is a leader in scarce promotional items, with new media marketing and own creative brand blessings. The market space and future development potential are expected.
We estimate that the company’s net profit attributable to mothers for 2019-2021 will be 1.
1.6 billion, 1.7.6 billion, 2.
42 ppm, an increase of 24 in ten years.
7%; corresponding to 2020-2021 PE is 32 times, 24 times.
We are optimistic about the track where the company is located, optimistic about the company’s customers’ continuous development and new media business collaboration, and maintain the “recommended” level.
Risk warning: the epidemic situation is intensified, the franchise business is less than expected, and the new media marketing competition is intensifying.