Yuanlong Yatu (002878): Steady Growth of Traditional Main Business Steads New Media Marketing Performance

Event: The company released the semi-annual report for 2019, and the company achieved operating income in 2019H16.

7.8 billion, an annual increase of 52.

83%; net profit attributable to mothers was 59.68 million yuan, an annual increase of 22.

34%; realized non-net profit of 55.89 million, an annual increase of 25.


The basic return is 0.

46 yuan, expected average net asset income increased by 9.


Gifts and digital marketing businesses have grown steadily.

The report reports that the company’s gift and gift business and promotional service revenue were 4 respectively.

73 ppm, 75.24 million, an increase of 30 in ten years.

39%, 12.


Benefiting from the intensified competition in the fast-moving consumer goods industry, consumers ‘improved offline consumption experience, brand customers’ requirements for creative design of gift items, and the industry’s acceleration of the clearing of small companies with serious homogeneity.

The company continues to develop in the direction of creative + supply chain integration, and the enhancement brought by the expansion of gift products and digital promotion business among core customers.

Benefiting from the changes in the subdivision structure of the advertising industry, the performance of the new media marketing business was outstanding.

In 2019, advertisers’ marketing budgets continue to tilt towards new media such as Shuangwei, Douyin, and Xiaohongshu.

Through the capital strength and brand effect of listed companies, the company’s subsidiary Qianma Network (holding 60% equity) has achieved leapfrog development.

In the first half of 2019, Qianma Network achieved revenue1.

140,000 yuan, an increase of 83 in ten years.

28%, achieving net profit of 16.05 million (contributing 9.63 million to the net profit of listed companies attributable to mothers), an annual growth of 23.


Benefit from the World Garden Fair and the Winter Olympics and wait for the company’s franchise business performance in the second half of the year.

The company’s franchised souvenir business is the development and sale of souvenirs for the 2019 Beijing World Garden Fair and the 2022 Beijing Winter Olympics.

In the first half of 2019, since the World Garden Fair was only opened for 2 months, it only realized revenue of 508.

620,000 yuan.

For the Winter Olympics, the company will begin to promote product sales in the banking channel in the second half of the year.

At the same time, summer, Mid-Autumn, National Day and other holidays have come one after another, and the number of visitors to the park will further increase. We expect the company to reorganize the franchise business to achieve 12.57 million revenues.

Profit forecast: Assuming that the company’s performance business continues to advance steadily, it is expected that the EPS for 19-21 淡水桑拿网 will be 1.

00 yuan, 1.

30 yuan, 1.

86 yuan, maintain “Buy” rating.

Risk warning: macroeconomic continued downside risks, increased competition in the industry, and others.