New World (000997): Faster profit margins than expected
The company’s three quarterly profit margins have significantly improved in the long term, driving overall performance to exceed expectations, mainly due to the continuous over-industry growth of payment operation services and the standardized growth of online loan business.
In addition, Newland Group’s forward-looking layout of blockchain technology, combined with the two-dimensional code and technology application of the payment industry may conceive new growth possibilities, and continue to be highly recommended.
Event: The company achieved revenue 42 in the first three quarters.
6.4 billion, an annual increase of 3.
2%; net profit attributable to mother 6.
2.7 billion, an annual increase of 30.
87%; if the cost of equity incentives is excluded, net profit attributable to mothers will increase by 41 each year.
82%; deduct non-net profit 5.
4.9 billion, an annual increase of 19.
In Q3, non-net profit was deducted in a single quarter.
6.7 billion, an annual increase of 20.
The profit margin improved more than expected, and the growth of payment flow surpassed the industry.
In the first three quarters of the company, the growth rate of net profit attributable to mothers was much higher than the growth rate of revenues. The increase in profit margin exceeded market expectations. The gross margin quotation eventually increased by nearly 9 alternatives at the same time, and the net profit margin increased by 3.
The 11 averages are even worse if we exclude equity incentive costs.
We believe that the reasons for exceeding expectations are the continuous increase in the contribution of payment operation performance and the increase in the business’s own rates.
In the environment where the growth rate of the company’s zero and e-commerce has declined significantly, the first three quarters of Guotong Xingyi’s payment receipts still achieved.
33% annual growth rate reached 1.
2 trillion, meanwhile, after the industry standardization, leading companies also ushered in price increases.
At the same time, after the construction of a strict risk control system, the company’s fintech services began to increase in volume, with more than 4 loans in September.
300 million yuan.
The first batch of online loan business subsidiaries were approved to join the online credit reporting system, which will greatly enhance the online loan business volume and the quality of operations. We are optimistic about the flexibility of the performance of fintech services under the perfect ecological layout of the New World.
The Group lays out the blockchain and promotes the application technology innovation of QR code scenarios.
In September last year, Thunder sold to New World Group Chain Enjoy Cloud to allow its blockchain business, including Linkchain, Linkchain Mall, and Linkchain Pocket, mainly to participate in common core technologies and advantageous resources to actively explore the construction of “digital citizens” and districts.Application and innovation of block chain technology.
We believe that QR code is just a scenario for 四川耍耍网 the application of blockchain technology. The potential change of the blockchain to the payment industry may give birth to more prominent growth and development potential.
Maintain “Highly Recommended-A” investment rating.
EPS is expected to be zero in 19-21.
18 yuan, corresponding PE is limited to 24/19/15 times.
Competitive advantages of payment receipts have been expanded, and merchant operations have been accumulated with the improvement of the ecological environment. The data has changed to the existing order, leading style has been fully demonstrated, and the rating of “Highly Recommended-A” has been maintained.
Risk reminder: regulatory risks in the payment and acquiring industry; business operation development is lower than expected.