Focus Technology (002315): Non-net profit increased sharply; main business operations gradually improved
The 2019 results are basically in line with our expectations of the company’s 2019 results: revenue for ten years + 12% to 9.
800 million, net profit attributable to mother for ten years + 168% to 1.
50,000 yuan, corresponding profit 0.
64 yuan, deducting non-net profit more than + 264% to 63.05 million yuan. The increase was mainly due to the improvement in the operation of e-commerce and insurance business, and the increase in the fair value of trading financial assets held by the company has increased;
Development trend B2B business operations have improved, and overseas subsidiaries have improved and narrowed.
Company B2B business revenue for ten years + 8% to 6.
800 million, of which membership fee income for ten years + 35% to 4.
9 trillion, value-added service fee for ten years -41% to 1.
1) The number of registered fee-paying members of China Manufacturing Network + 10% / mood + 5% to 18,789. The number of active buyers and the renewal rate of quoted suppliers have all increased steadily.
2) Kailuo.com, a cross-border trading platform, continued to improve its distribution channels and system functions (launched the “Kairo Retailer Partner” program and buyer credit line services), expanded the Southeast Asian market, and began to contribute to profitability.
3) The combined budgets of overseas platforms DOBA and InQbrands narrowed to 4,624 million (vs.
18,49 million yuan).
Internet 苏州夜网论坛 insurance sales have grown steadily, and operating cost control margins have improved.
Corporate insurance business revenue for ten years + 28% to 1.
1) The new subsidiary of the subsidiary has continued to exert efforts in terms of end-user consumers, enterprise-side cross-industry partners, product research and development, and achieved a net profit of -5.98 million yuan, reducing a loss of 7.14 million yuan.
2) The 19-year promotion and operation cost of the new station exceeds -41%, the number of end users has increased significantly and the repurchase rate has increased significantly; the sales expense ratio and management expense ratio accounted for 5% of its revenue.
3ppt / 0.
6ppt to 82.
8% / 2.
Outbound investment will increase short-term performance, and investment companies are expected to receive a revaluation.
The company’s 19-year investment income and fair value gains and losses totaled more than + 223% to 78.76 million yuan, accounting for 45% of total profits.
In addition, the company holds Suning Bank9.
95% equity; 19.
7% of Internet insurance sales platforms updated their listing applications to the US Securities and Exchange Commission on February 7, 2020.
We expect that the conversion of these assets to increase profitability or the realization of listing may lead to a revaluation of the company’s valuation.
Earnings forecasts and estimates The company’s current expectations correspond to 29.
8 times 20-year price-earnings ratio and 27.
8 times 21-year price-earnings ratio.
Considering the marginal improvement of operating cost control, we raised our net profit in 2020 to 60%.
1ppm, net profit 2 in the year 2021.
Considering that the effect of business transformation remains to be observed, we maintain a neutral rating; at the same time, based on the upward revision of earnings forecasts, we raise the company’s target price by 37% to 26.
7 yuan, corresponding to 30 times the 2020 price-earnings ratio, compared with the current continuous 0.
5% upside. Risks Foreign trade environment deteriorates, premium growth exceeds expectations