\u3000\u30003 Midea Group Co.Ltd(000333) 00033)
Event: Hithink Royalflush Information Network Co.Ltd(300033) disclosed the results of the first quarter of 22 years on April 25. During the reporting period, the company’s operating revenue and net profit attributable to the parent decreased by 2.9% and 34% year-on-year to 515 million yuan and 112 million yuan respectively. The revenue was strong and resilient in the downward market environment, and the net profit was not as expected due to the rigid constraints of management and R & D expenses.
We expect that the revenue of 22q1 personal value-added telecommunications services fell by 10% year-on-year, about 300 million yuan, accounting for 60% of the total revenue. Although the revenue growth in the quarter was negative, we saw two positive data signals. One is that the operating cash inflow of 730 million yuan in the first quarter of 22 was 215 million yuan higher than the revenue in the same period, returning to a higher range in history, Second, at the end of the first quarter, the scale of contract liabilities increased by 74.5 million yuan and 104 million yuan to 1.15 billion yuan respectively year-on-year and month on month, reaching a two-year high. These two data show that after the strict supervision of E-marketing channels and customer refunds in the second half of last year, value-added telecom services began to recover gradually. We expect the annual personal value-added telecom revenue to increase by 6% year-on-year;
Although the number of new accounts opened in the whole market decreased by 12% year-on-year in the first quarter, relying on the continuous transactions of old customers, we expect the advertising and Internet business revenue of Hithink Royalflush Information Network Co.Ltd(300033) first quarter to increase by 25% – 30% year-on-year, accounting for about 25% of the total revenue; In the 20-21 years, the revenue of Hithink Royalflush Information Network Co.Ltd(300033) advertising and Internet business increased by 80.9% and 53.6% year-on-year respectively to 840 million yuan and 1.28 billion yuan, 20 and 29 PCT higher than the growth rate of stock based trading volume in the whole market. If we assume that the average daily stock based trading volume in the 22 year market decreased by 15% to 900 billion yuan year-on-year, considering the decline in the proportion of quantitative trading this year, and Hithink Royalflush Information Network Co.Ltd(300033) ‘s customers are almost individual investors, and their growth characteristics verified by past performance, We expect its advertising and Internet business revenue to increase by about 10% year-on-year;
22q1 Hithink Royalflush Information Network Co.Ltd(300033) ‘s operating profit margin fell 11pct to 25.9% year-on-year, mainly because the growth rate of 48% and 23% of R & D expenses and management expenses was much higher than the decline of 2.9% of revenue. We expect these two expenses to be relatively rigid throughout the year;
Investment suggestion: the net profit data in the first quarter of 200322 is not ideal, but the revenue reflects resilience, and the improvement of operating cash flow and the increase of contract liabilities show that the personal value-added telecom business shows a good trend, which is affected by the large fluctuation and weak performance of the equity market in 22 years, We lowered the company’s 22 year revenue and net profit attributable to the parent company by 4.1% and 9.1% respectively to 3.65 billion yuan and 1.74 billion yuan (the previous value was 4.06 billion yuan and 2.17 billion yuan), and the current share price corresponding to PE was 26.3 times, maintaining the buy rating;
Risk warning: the capital market fluctuates sharply and the transaction amount decreases sharply; The price of the company’s value-added telecommunications service products fell sharply; Customer unsubscribe increased significantly; Significant changes in third-party account opening supervision policies; It is assumed that there is a risk of deviation between the calculation results and the actual situation;
