[Headline announcement Nuggets]
Fushouyuan (01448) announced interim results, profit attributable to shareholders of 465 million yuan increased 78% year-on-year
According to Zhitong Financial App, Fushouyuan (01448) announced its interim results for the six months ended June 30, 2023. The group achieved revenue of RMB 1,525 million (same unit), an increase of 68.2% over the previous year; profit attributable to company owners was 465 million yuan, an increase of 77.99% over the previous year; profit of 20.5 points per share, and plans to pay an interim dividend of HK9.06 cents per share.
Comment:The main reason why the company's performance was able to achieve high-quality growth is that in the same period last year, the epidemic spread more and more, and market demand for tomb services was temporarily suppressed. However, during this period, the accumulated and deferred demand for funeral consumption was quickly released, the number of customers visiting the park rose sharply, and the performance of operational tomb sales services was reimbursed. During this period, the company's operating tomb sales and service revenue increased by 541 million yuan or 84.3% over the same period last year, of which the sales volume increased by 3,688 units or 60.5%. At the data level, the number of contracts signed during Fushouyuan's lifetime contract business reached a new high. In the first half of this year, the number of pre-life contract business contracts signed by Fushouyuan reached 9,272, an increase of 18.4% over the same period last year. The funeral service business achieved revenue of 224 million yuan, an increase of 36.2% over the previous year, accounting for 14.7% of the company's total revenue. Digital business is the catalyst for the future, and Fushouyuan's digital transformation process has been further accelerated. Following the launch of the “Digital Cemetery · Huixin Valley” project last year, this year's Qingming Festival Fushouyuan launched digital immersive cleaning in various places. In addition, Fushouyuan also used modern internet technology to move funeral services to the JD Online Mall. It is expected to bring further improvements to the overall business.
[Key Announcements Nuggets]
Limeng Technology (02405) Fa Yingxi expects net profit of more than 2 million US dollars in the medium term to increase by more than 30.0% year-on-year
According to Zhitong Financial App, Limeng Technology (02405) announced that the Group expects net profit of more than 2 million US dollars in the 6 months ending June 30, 2023, an increase of more than 30.0% from the net profit of about 1.5 million US dollars for the 6 months ending June 30, 2022. According to the Board of Directors, the increase was mainly due to (i) the increase in business volume from existing customers of the Group's cross-border digital marketing services and cross-border online store SaaS solutions during the period; (ii) the Group's SaaS-related services acquired a number of new customers; and (iii) the Group's cost structure for maintaining a healthy cost structure.
Reviews:This increase in performance stems from the company finding new momentum for performance growth by cultivating a new business called SaaS solutions for cross-border online stores. Currently, the cross-border marketing industry where Limeng Technology is located is still in the early stages of development. The company has yet to form a solidified market competition pattern in the industry, and there are currently no leading players in the industry who have a monopoly advantage in terms of market share.
According to Frost & Sullivan, in terms of total bill amount in 2021, Limeng Technology ranked third among cross-border e-commerce, with a market share of 6.2%; the company is also the fourth largest cross-border digital marketing service provider in China, with a market share of 2.7%. By the end of 2022, Limeng Technology had provided services to more than 1,900 marketers and cooperated with 19 major global media publishers, including Google and Twitter. The media coverage of its services covered more than 240 countries and regions around the world. According to institutional forecasts, the market size of China's cross-border digital marketing service industry is expected to expand to US$61.6 billion from 2021 to 2026. The corresponding compound annual growth rate is about 22.5%, but the compound annual growth rate of 36.0% in the previous 5 years has slowed down.
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