Tianyin Holdings (000829): Shenzhen Investment Control Holdings initially formed a 1 + N strategic layout

Tianyin Holdings (000829): Shenzhen Investment Control Holdings initially formed a “1 + N” strategic layout

Company announcement: 1) 2018 revenue 424.

6.6 billion / + 7.

16%, net profit attributable to mother -2.

31 ppm / -198.

50%, deduct non-attributed net profit -8.

01 ppm / -427.

18%, ROE -9.

27% /-17.

30pct, no cash distribution; 2) 2019Q1 revenue 102.

04 ppm / -2.

28%, net profit attributable to mother 0.

12 ppm / + 187.

11%, net of non-attributed net profit 0.

1.4 billion / + 148.

32%, ROE 0.

46% / + 0.

The 32pct mobile phone distribution business has gradually expanded, driving steady revenue growth.

In 2018, the mobile phone distribution business earned 410.

5.2 billion / + 6.

86%, accounting for 97% of revenue.

03%, gross profit margin 1.

65% /-1.

74 points.

The 19Q1 performance turned losses, and the cost reduction and efficiency enhancement effects were significant, mainly due to the steady increase in sales revenue of some new products.

The sales capacity of the lottery business was strengthened, and the distribution of social channels was established.

Revenue from lottery business in 20184.

2.9 billion / + 18.

91%, the sales contract of Suicai Poker increased in 2018, the sales volume and production volume increased, and the sales volume of lottery equipment was 14,677 units, an increase of 132.

89% with zero inventory.

In general, in 2018, the Ministry of Finance and other departments issued the No. 105 Announcement on the governance of Internet lottery sales, and the regulatory environment of the lottery industry has become increasingly severe.

Focusing on the main business, the mobile internet business has developed rapidly.

As the company’s emerging main business, the mobile Internet business reflects the good development momentum under the potential of the times.

The mobile resale business developed 无锡桑拿网 rapidly and the performance targets were exceeded.

The company has become one of the first few companies to simultaneously resell formal commercial licenses for three systems simultaneously and has reached value-added business cooperation with China’s large-scale leading Internet platform companies and basic operators to establish a mature and stable businessOperating platform.

5G business is driving the wave of mobile phone replacements.

Smart phones are optional consumer products, which basically cover all people with spending power. In the stock market, changes in mobile phones determine the frequency of changing phones.

Three factors are driving the wave of mobile phone replacements.

IDC estimates that the number of 5G mobile phone implants in 2019 will be 6.7 million, accounting for only 0% of global mobile phone implants.5%.

In 2019, multiple mobile phone brands successively released 5G mobile phones, Samsung released Galaxy10 5G and GalaxyFold, Huawei released MateX, and domestic brands such as Xiaomi and OnePlus also successively launched the first 5G mobile phones.

5G commercialization is expected to accelerate in 2019, and various terminal brands have successively released 5G mobile phones.

Profit forecast: Shenzhen Investment Control Holdings has gradually formed a “1 + N” strategic layout, and cooperated with Huawei to go abroad to gradually advance the Chinese smartphone “going out” strategy.

The company’s EPS for 19-21 is expected to be 0.

27, 0.

35, 0.

47 yuan, corresponding to 5.

7 closing prices PE are 20 respectively.

9, 16.

1,12.

0 times, maintaining the level of “prudent overweight”.

Risk warning: upstream gross profit squeeze, overseas demand is less than expected, exchange rate risk, etc.