ST Huiqiu (600556) company comment: 19 years of performance growth of 58% -71% exceeded expectations, focusing on social marketing into a high growth trajectory

ST Huiqiu (600556) company comment: 19 years of performance growth of 58% -71% exceeded expectations, focusing on social marketing into a high growth trajectory

The company released a performance forecast, and Tianxiaxiu is expected to achieve net profit attributable to mothers in 20192.

50-2.

700,000 yuan, an increase of 58 in ten years.

34% -71.

01%; Tianxiaxiu is expected to achieve net profit after deductions to mothers2.

50-2.

70 ppm, an increase of 59 in ten years.

46% -72.

22%, reached a profit forecast compensation agreement promised revenue (2019-2021 Tianxiaxiu achieved net profit after deduction of non-return to mother 2).

45/3.

35/4.

3.5 billion), exceeding market expectations.

Core Logic: Tianxiaxiu is a matching platform between advertisers and MCNs, and is committed to providing intelligent new media marketing solutions.

Upstream links more than 450 large brands and 80,000 small businesses, and downstream links with millions of content producers.

Currently has three major brand 杭州桑拿 matrices, resources andThe advantages of data and marketing system are obvious. Among them, the WEIQ platform has deep-deposited self-media resources, covering more than 95% of the original content and more than 98% of the user scale from the media platform.

Tianxiaxiu established barriers to industry experience through first-mover advantages, and established customer resources and brand barriers through product service capabilities. At the same time, it developed information systems to further consolidate resource advantages, data advantages, and operational advantages.Divided the lead.

The progress of the industry promotes the decentralization of traffic, and the rapid development of the ecological service provider industry.

Technological advancements have led to changes in the platform and content forms for consumers to access information, and provide the basic driving force for the development of the online advertising market.Newspaper advertising, outdoor advertising, magazine advertising) income of 74.

2%.

The initial infiltration of mobile Internet has brought incremental market dividends, and the number of users on social networks and short video platforms has continued to grow.

Social network advertising and short video advertising have developed rapidly in 2018, and iResearch estimates that the market size will exceed 100 billion in 2021.

In the context of rapid decentralization of upstream and downstream, new media marketing service providers have intensified competition in customer resources and social media resources, and the market is highly fragmented.

In the era of the mobile Internet media, consumers’ attention-based information acquisition models and consumer purchase processes are all realized on smartphones, which has created a market demand based on the integration of consumer products and efficiency, and has put forward requirements for the creativeness and interest of advertising forms.

The decentralization of traffic and the combination of products and effects have led to the rapid development of the ecological service provider industry, and new media marketing service providers that use resource integration capabilities will stand out.

Maintain profit forecast and give Buy rating.

We estimate that net profit attributable to mothers will be 3 in 2020-21.

41/4.

47 trillion, corresponding to 68/52 times the PE.

Risk reminder: New brand development is less than expected, and market competition is fierce