On April 8, Three'S Company Media Group Co.Ltd(605168) released the annual performance report for 2021. According to the financial report, the Three'S Company Media Group Co.Ltd(605168) operating revenue in 2021 was 3.571 billion yuan, a year-on-year increase of 27.18%; The net profit attributable to the shareholders of the listed company was 505 million yuan, a year-on-year increase of 39.18%; The basic earnings per share was 7.25 yuan, a year-on-year increase of 23.72%, and the revenue and net profit increased significantly.
Through the analysis of the data from the table to the inside, Fanxiang finance and economics has seen the other side of Three'S Company Media Group Co.Ltd(605168) .
First, as a campus agent, Three'S Company Media Group Co.Ltd(605168) has been successfully transformed into the field of Internet marketing; Second, the scale of upstream suppliers continues to expand, driving the field of Three'S Company Media Group Co.Ltd(605168) customer resources to expand in the direction of higher quality; Third, as a media advertising industry, Three'S Company Media Group Co.Ltd(605168) 's share price is extremely "hit".
Digital marketing services accounted for 89.86%
According to Fanxiang finance and economics, Three'S Company Media Group Co.Ltd(605168) is a comprehensive advertising media enterprise specializing in integrated marketing services. It mainly provides customers with digital marketing services, scene activity services and campus media marketing services. It landed on the main board of Shanghai Stock Exchange in May 2020 and is known as "the first share of Campus media".
Since its listing in 2020, Three'S Company Media Group Co.Ltd(605168) 's share price has been hovering around 250 yuan / share, and its founder Qian Jundong has also been listed on the Hurun global rich list in 2020 due to his excellent performance in the previous capital market. As of the closing on April 8, Three'S Company Media Group Co.Ltd(605168) reported 177.48 yuan / share. The question is, how does Three'S Company Media Group Co.Ltd(605168) , which started with campus advertising agency, support the stock price of 100 yuan? The answer may be better performance drivenP align = "center" Image Source: Jun Zhi in Fanxiang
From the business structure of Three'S Company Media Group Co.Ltd(605168) , although it started with campus advertising agents, digital marketing services accounted for the absolute majority and achieved rapid growth in performance. According to the financial report data, the digital marketing service revenue in 2021 was 3.209 billion yuan, accounting for 89.86% of the operating revenue, with a year-on-year increase of 25.05%; Scene activity service revenue was 185 million yuan, accounting for 5.19% of the operating revenue, with a year-on-year increase of 25.54%; Other main business income was 144 million yuan, accounting for 4.03% of the operating income, with a year-on-year increase of 88.26%P align = "center" Image Source: Jun Zhi in Fanxiang
Judging from the performance of Three'S Company Media Group Co.Ltd(605168) in recent three years, its performance shows a trend of rapid growth. From 2019 to 2021, Three'S Company Media Group Co.Ltd(605168) the operating revenue was 1.631 billion yuan, 2.807 billion yuan and 3.571 billion yuan respectively; The net profits attributable to shareholders were 194 million yuan, 363 million yuan and 505 million yuan respectively.
In terms of profitability, in 2021, Three'S Company Media Group Co.Ltd(605168) gross profit margin was 21.15%, with a year-on-year increase of 1.66 percentage points; The net interest rate was 14.14%, an increase of 1.22 percentage points over the same period last year. In terms of products, the gross profit margins of digital marketing services, scene activity services and campus media marketing services in 2021 were 19.30%, 37.07% and 73.57% respectively.
Internet plus head client drive
For the reasons for the above performance growth, Three'S Company Media Group Co.Ltd(605168) said in the financial report: it is due to the enterprise actively expanding new head customers and original key customers and increasing the investment amount.
On the whole, there are two reasons for Three'S Company Media Group Co.Ltd(605168) expanding the scale of revenue:
First, the stickiness of cooperation with partners is relatively high Three'S Company Media Group Co.Ltd(605168) has been cooperating with major customers for a long time, and has maintained large amount of cooperation in recent years. The cooperation mode is mature and has formed high industry barriers. For example, leading enterprises such as China Telecom Corporation Limited(601728) , China Mobile and Yili Group have cooperated with Three'S Company Media Group Co.Ltd(605168) for more than 5 years.
Based on the premise of stable cooperation, Three'S Company Media Group Co.Ltd(605168) can not only ensure the current performance, but also expand to larger comprehensive central enterprises and new customers of new tracks based on the previous experience in customer service.
During the reporting period, Three'S Company Media Group Co.Ltd(605168) added fast-moving consumer goods such as Yibao, Xuehua, Heineken and Foshan Haitian Flavouring And Food Company Ltd(603288) of China Resources Group; New consumption of leading enterprises in the medical and beauty industry, such as giant biology; Sports lottery management center of the General Administration of sports of the people's Republic of China Postal Savings Bank Of China Co.Ltd(601658) , China Minsheng Banking Corp.Ltd(600016) and other high-quality customers in the financial industry.
In addition, Three'S Company Media Group Co.Ltd(605168) won the bid for Dongfeng Honda's online advertising agency project in 2022, and was selected as a brand-new model of FAW Toyota to provide brand publicity and communication and other marketing services. At present, it has successfully provided high-quality brand marketing services for FAW Volkswagen, FAW Pentium, FAW Toyota, SAIC GM Cadillac, Dongfeng Honda, Great Wall Motor Company Limited(601633) .
Winning the bid for such head car customers with large marketing budget not only ensures the growth of the company's performance in 2021, but also lays a foundation for the growth of Three'S Company Media Group Co.Ltd(605168) 2022 and subsequent performance Three'S Company Media Group Co.Ltd(605168) also said in the financial report that it would continue to tap the deep marketing budget of the original leading customers in consumer goods, telecom operators, automobiles and other industries, so as to ensure the stickiness and satisfaction of the original major customers.
Second, seize the outlet of Internet marketing for transformation Three'S Company Media Group Co.Ltd(605168) started with the campus agency business of telecom operators, and then gradually developed to the Internet marketing service provider, creating three service modes of digital marketing, scene activities and campus media marketing, and forming a comprehensive marketing service of "campus + Internet".
By the end of 2019, Three'S Company Media Group Co.Ltd(605168) 's campus media network has covered more than 800 colleges and universities in 31 provinces; In terms of online media resources, Three'S Company Media Group Co.Ltd(605168) has established good business cooperation relations with many well-known Internet media in China, including byte beating, Tencent, Sina, Sohu, Netease, iqiyi, Youku, People.Cn Co.Ltd(603000) , Phoenix and many other well-known Internet media in China. Rich resources and high efficiency help it meet the marketing needs of most customers.
The revenue of the top five customers accounts for nearly 70%
From campus agent to new FMCG product marketing to automobile industry, Three'S Company Media Group Co.Ltd(605168) 's business line continues to expand, and has transformed from the original campus service provider to a comprehensive advertising media enterprise. It can be said that the development of digital technology has had a great impact on the media advertising industry, and is changing the form of media advertising and the establishment of cost.
While increasing high-quality customers and head supply resources, the investment at Three'S Company Media Group Co.Ltd(605168) cost level is also increasing.
According to the financial report, the Three'S Company Media Group Co.Ltd(605168) operating cost in 2021 was 2.816 billion yuan, with a year-on-year increase of 24.56%, of which the sales expenses, management expenses and R & D expenses increased by 33.61%, 70.78% and 311.32% over the same period last year.
Screenshot source: Three'S Company Media Group Co.Ltd(605168) Annual Report
In addition, even though Three'S Company Media Group Co.Ltd(605168) has market influence at present, the marketing advertising industry is different from the industry relying on independent research and development. Once emerging forces emerge and the business model is copied to form scale advantages or price advantages, it may pose a threat to Three'S Company Media Group Co.Ltd(605168) 's industry status.
It is worth noting that during the reporting period, the sales of Three'S Company Media Group Co.Ltd(605168) top five customers reached 2.485 billion yuan, accounting for 69.58% of the total annual sales; The total procurement amount of the top five suppliers of the company is 1.633 billion yuan, accounting for 58.01% of the total annual procurement. At the same time, Three'S Company Media Group Co.Ltd(605168) also said that the proportion of sales to a single customer in the reporting period exceeded 50% of the total, and there were new customers among the top five customers or serious dependence on a few customers.
From the perspective of Three'S Company Media Group Co.Ltd(605168) 's customers and suppliers, it is not difficult for many partners with large business scale to establish their own digital marketing model by relying on their own platform advantages. It is unknown whether these large customers will reduce their dependence on digital marketing companies in the future; In addition, if the upstream supplier raises the charging standard, it will have a certain impact on the profitability of the company.
It is worth noting that as of the reporting period, Three'S Company Media Group Co.Ltd(605168) some shareholders pledged their shares. Among them, the actual controller Qian Jundong pledged 1.15 million shares and his spouse Cui Lei pledged 1.15 million shares; Qingdao Zhonghang investment partnership pledged 2.75 million shares and Qingdao Duoduo Investment Co., Ltd. pledged 2 million shares, accounting for 10.12% of the total share capital.
According to the industrial and commercial data, both Qingdao Zhonghang investment partnership and Qingdao Duoduo Investment Co., Ltd. are controlled by Qian Jundong and his spouse Cui Lei.
