\u3000\u3 Bohai Water Industry Co.Ltd(000605) 168 Three'S Company Media Group Co.Ltd(605168) )
Event: Three'S Company Media Group Co.Ltd(605168) disclosed the first quarter report on April 16, Three'S Company Media Group Co.Ltd(605168) achieved a revenue of 895 million yuan in the first quarter of 2022, with a year-on-year increase of 58.83%, and a net profit attributable to the parent company of 60 million yuan, with a year-on-year increase of 13.07%. The net profit deducted from non return to parent was 59 million yuan, with a year-on-year increase of 11.39%.
Leading customers in automobile and other industries drove the growth of revenue. The net profit margin was superimposed by the increase of labor cost, and the high gross profit business was slightly lower year-on-year due to the impact of the epidemic, and it is expected to recover in the follow-up. The gross profit margin of the company in 2022q1 was 14.20%, down 3.12pct year-on-year and 9.05pct month on month. The net interest rate was 6.72%, down 2.72 PCT year-on-year and 10.37 PCT month on month. In terms of expenses, the sales expenses of 22q1 company were 433974 million yuan, a year-on-year increase of 46.03% and a month on month decrease of 5.02%; The sales expense ratio was 4.85%, with a year-on-year decrease of 0.42pct. The management fee was 114997 million yuan, a year-on-year decrease of 15.42% and a month on month decrease of 40.70%; The management fee rate was 1.29%, down 1.13 PCT year-on-year. The R & D expense was 8.8762 million yuan, with a year-on-year increase of 44.58%, a month on month decrease of 16.21%, a R & D expense rate of 0.99%, a year-on-year decrease of 0.10 PCT and a month on month increase of 0.25 PCT.
The main reasons for the year-on-year decline in gross profit and net profit are as follows: 1) affected by the multi-point outbreak of the national epidemic in 22q1, the company's high gross profit business scene activity service business and campus media marketing service business are limited, and some businesses cannot be carried out; 2) The company vigorously expanded the head automobile company. In order to meet the needs of automobile business development, the labor cost increased significantly year-on-year. We believe that with the improvement of the team and the recovery of the epidemic, the overall gross profit margin and net profit margin will rise.
In terms of cash flow and accounts receivable, the net operating cash flow of 2022q1 company was - 350 million yuan, compared with - 250 million yuan in the same period last year. The change of net operating cash flow is mainly due to the increase of the company's advance payment, the payment of security deposit, taxes and wages. By the end of 22q1, the accounts receivable was 1.776 billion, compared with 971 million in the same period last year, with a year-on-year increase of 82.90%. With reference to the company's accounts receivable aging of 21 years, accounts receivable within 1 year accounted for 98%, which is conducive to collection under the company's key customer structure.
Equity incentive began to be granted and the new business of yuanuniverse was arranged. In January 2022, the company issued the draft restricted stock incentive plan for 2022. The performance evaluation conditions for lifting the restriction from 2022 to 2024 are that the net profit is not less than 730 / 10 / 1.3 billion yuan respectively. In this announcement, the board of directors agreed to determine April 18, 22 as the first grant date, and grant 374500 restricted shares to 51 incentive objects at a grant price of 96.33 yuan / share. In addition, through cooperation with Beijing cultural property rights trading center and China's first-line virtual human manufacturer magic enamel technology, the company has arranged digital collections and virtual human related businesses. The market is worried about policy supervision, and we are not pessimistic about the follow-up development of digital collections that meet the supervision.
Investment suggestion: our early report emphasizes that the company has the advantages of core key customers. The rapid growth of revenue in this quarterly report also provides a basis for the development momentum of 22 years. Although the macro-economy and epidemic situation fluctuate, we are optimistic that the company will continue to strengthen the budget exploration ability of stock and incremental customers. We maintain the original profit forecast. It is estimated that the net profit from 2022 to 2024 will be RMB 730 / 10.0 / 1.3 billion respectively, corresponding to the valuation of 12.0x / 8.8x / 6.9x, maintaining the "buy" rating.
Risk warning: macroeconomic uncertainty; Policy supervision; The landing of digital product trading platform was less than expected
