2021-10-27 Guojin Securities Co., Ltd. Fan Zhiyuan, Deng Xiaoping Road, and Liu Yanxue conducted a study on Zenyin Holdings and issued a research report entitled "performance is bright, profitability is expected to continue to repair". This report gives a buy rating to Tsinghua Holdings, which is believed to have a target price of 243.00 yuan, while the current share price is 158.0 yuan, with an expected increase of 53.8%.
Tencent Holdings (688036)
Brief comment on performance
On October 26, 2021, the company announced that the company's revenue in the first three quarters was 35.8 billion yuan, an increase of 43%, the net profit of the mother was 2.88 billion yuan, an increase of 47%, and the non-net profit deducted by the mother was 2.539 billion yuan, an increase of 45%. As expected. If you add back the medium-and long-term incentive fund fees (320 million), the net profit in the first three quarters reached 3.2 billion yuan, outstanding performance.
Business analysis
The year-on-year increase in the company's net interest rate is due to the decrease in financial rates and the increase in profit and loss from changes in fair 1) the company's Q3 revenue was 12.9 billion yuan, with an increase of 16%, 11%, 1.15 billion yuan, 33%, 24%, and 990 million yuan, 22% and 27%, respectively. the company's Q3 revenue was 12.9 billion yuan, an increase of 16%, an increase of 11%, a net profit of 1.15 billion yuan, a 33% increase, a 24% increase, a 22% increase and a 27% increase. The rapid growth of revenue and net profit is mainly due to the vigorous development of the African market. 2) the net interest rate of Q3 company is 8.9%, which is higher in 1.1pct and 0.9pct than in the same period last year. The improvement in profitability is mainly due to the decrease in Q3 financial rate and the increase in 1pct in fair value change profit and loss rate compared with the same period last year. The decline in financial rates is mainly due to the weakening of exchange rate fluctuations, and the increase in profit and loss of fair value changes is mainly due to the rise in Geke's share price.
Q3 real gross profit margin remains stable, rising pressure on raw materials is transmitted smoothly, and profitability is expected to continue to repair. 1) the company's Q3 financial statements showed an apparent gross profit margin of 20.8%, a decrease of 3.9pct and a month-on-month decrease of 0.7pct compared with the same period last year. Mainly due to the company's "sales rebate" adjustment of accounting standards. 2) according to accounting standards, there are generally two ways to deal with "sales rebate": 1 to directly offset the sales income of the current period; 2. The rebate is withheld as sales expenses and cashed back in the next period. Company Q3 adjusted accounting standards, the previous included in the sales expenses of the "sales rebate" directly offset operating income, the impact is expected to be 450 million yuan. 3) excluding the "transportation expenses" of Q2 and the "sales rebate" accounting policy change of Q3, the company's Q1~Q3 gross profit margin in 2021 is estimated to be 23%, 25% and 25.3% according to the 2020 standard. Under the influence of rising raw materials, the company's gross profit margin remained stable, highlighting the price transmission capacity of the king of smartphones in Africa. It is estimated that with the fall in the price of raw materials, the company's profitability is expected to continue to repair.
Investment advice:
We are optimistic about the continued increase in smartphone penetration in the African market and the value of the company as a gateway to the mobile Internet in Africa. It is estimated that the return performance of the company from 2021 to 2023 is 37.9,48.6 and 6 billion yuan, using PE valuation, giving the target price 243yuan (40*2022EPS) to maintain the "buy" rating.
Risk tips: exchange rate fluctuations, raw material price fluctuations, repeated overseas epidemics, market competition and so on.
A total of 18 agencies have given ratings and 18 buy ratings in the last 90 days; the average institutional target price has been 210.1 in the past 90 days; according to the Securities Star valuation analysis tool, the sound holding (688036) good company has a rating of 4.5 stars, a good price rating of 2.5 stars and a comprehensive valuation rating of 3.5 stars.