Hongqi Chain (002697) 2019 Third Quarterly Report Review: Performance Meets Predicted Investment Income Continues to Thicken

Hongqi Chain (002697) 2019 Third Quarterly Report 杭州夜生活网 Review: Performance Meets Predicted Investment Income Continues to Thicken
The company’s revenue from 1-3Q2019 increased by 7 per year.82%, net profit attributable to mothers grows 58 per year.69% of the companies released the third quarter report for 2019: 1-3Q2019 achieved operating income of 58.88 ppm, a ten-year increase of 7.82%; net profit attributable to mothers4.0.6 million yuan, converted to a fully diluted EPS of 0.30 yuan, an annual increase of 58.69%; net profit deducted from non-attributed mothers3.0.94 million yuan, an increase of 53 in ten years.73%, the performance is in line with the company’s previous performance announcement.  In terms of single quarter breakdown, operating income in the third quarter of 2019 was 20.58 ppm, an increase of 11 years.59%; net profit attributable to mothers1.69 ppm, a 67-year increase.51%; net profit deduction for non-attributed mothers1.65 ppm, an increase of 62 in ten years.15%.  Comprehensive gross profit margin increased by 1.08 averages, during which the rate of expense rose by 0.The consolidated gross profit margin of 1-3Q companies for the 26 quarters was 30.05%, rising by 1 every year.08 averages.  Expenses of the company during the first three quarters of 201924.19%, rising by 0 every year.There are 26 totals, of which the sales / management / financial expense ratios are 22 respectively.50% / 1.72% /-0.02%, change 0 each year.08/0.41 / -0.22 units.The increase in the company’s management expense ratio was mainly due to the increase in media promotion fees and the 70th anniversary of the founding of the PRC.  Xinwang Bank continued to contribute to investment income, reports on increasing profitability, and realized company investment income1.310,000 yuan, an increase of 252 in ten years.22%, 55.92 million yuan in the third quarter alone, making an important contribution to the overall performance growth.The company and Yonghui’s business continued to deepen, and the theme of the store brought about enhanced drainage capabilities, supplemented by the expanding range of development services and the 南京夜网论坛 continuous enhancement of internal control levels, which brought continuous improvement in the company’s profitability.In terms of incremental strong regional competitive advantages, the company is expected to benefit from the expansion of market space brought by the growth of Chengdu Tianfu New District.  Upgrade earnings forecast and maintain “overweight” rating. Taking into account the continuous increase in the company’s investment income brought about by the increase in the performance of Xinwang Bank. At the same time, the improvement of operating efficiency brought by cooperation with Yonghui has gradually come to an end. Predictions to 0.34/0.38/0.40 yuan (previously 0.32/0.34/0.37 yuan), maintaining the “overweight” level.  Risk warning: Internet financial business policy risks