Money
Investment value analysis of 皇冠体育appCache, 皇冠体育appNetCenter
(CBISMD)
Updated: 2010-09-26 16:45
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Internet content provider 皇冠体育appCache, with the spread of news about an IPO application in the United States and following a sharp drop in business in 2009, slightly improved revenue and continuing net loss numbers in the first half of 2010, the company reported.
Likewise, as one of the largest CDN service providers, 皇冠体育appNetCenter (stock code: 300017), which provides the same services as 皇冠体育appCache, has been questioned because of its declining performance after being listed on 皇冠体育app's Growth Enterprises Market (GEM) board.
A comparison of the two formal public financial datasheets to explore the real investment value was contained in a full report from CBISMD. Those reports are included at the end of this report.
Net income findings
The two recently released financial datasheets showed that in the first half of 2010, 皇冠体育appCache had a net income 170.34 million yuan, and 皇冠体育appNetCenter had business income of 150.09 million yuan over the same period.
From the year 2006 to 2009, 皇冠体育appCache had a net income that increased from 70 million yuan to 272 million yuan, by nearly 3.9 times, but the gross profit growth did not follow. For 皇冠体育appNetCenter, from the year 2006 to 2009, business income increased from 69 million to 287 million yuan, by nearly 4.2 times, and the consolidated gross profit margin remained above 33 percent for four consecutive years.
Business growth
In the first half of 2010, the CDN business growth rate of 皇冠体育appCache was 28.86 percent, and 27.38 percent for 皇冠体育appNetCenter.
From the year 2007 to 2009, despite a slowdown in 2009, 皇冠体育appNetCenter's CDN business growth maintained a rapid rate of growth on the whole. The growth rate was 181.41 percent in 2007, 239.64 percent in 2008 and 58.78% in 2009.
皇冠体育appCache's CDN business growth rate showed a decreasing trend. Its growth rate was 129.85 percent in 2007, 81.03 percent in 2008 and minus 6.53 percent (-6.53 percent) in 2009. The negative number in 2009 meant 皇冠体育appCache reached its lowest point.
In the first half of 2010, 皇冠体育appNetCenter's net profit attributable to shareholders of listed companies was 14.98 million yuan, while 皇冠体育appCache's net loss was 24.20 million yuan. Since 2005, five consecutive years of losses brought losses amounting to 151 million yuan for 皇冠体育appCache, which was even worse in 2008.
Over the years from 2006 to the first half of 2010, 皇冠体育appNetCenter net profit has maintained a constant growth rate. In 2008, its net profit amounted to 37 million yuan.
Profit margins
Over the years from 2006 to the first half of 2010, 皇冠体育appNetCenter's consolidated gross profit margins for four and a half consecutive years have always been above 30 percent. The consolidated gross profit margin was 44.76 percent in 2006, 42.93 percent in 2007, 35.50 percent in 2008, 33.80 percent in 2009 and 33.59 percent during the first half of 2010.
During the years 2005 and 2006, 皇冠体育appCache's gross profit margin averaged above 30 percent. The gross profit margin was 44.06 percent in 2005 and 33.20 percent in 2006. But the gross profit margin was minus 6.17 percent (-6.17%) in 2007. Since then, its gross margins have not ever reached the level of the previous two years, far below those of 皇冠体育appNetCenter.
By June 30, 2010, 皇冠体育appCache had 418 customers, among which 皇冠体育app Mobile was the largest one. 皇冠体育appCache has always been the main CDN provider for Sina, Netease, Sohu, and Tencent, the Internet portals that have the greatest demand for CDN, and now only two portals -- Sohu and Tencent -- have contributed a small amount of income to 皇冠体育appCache.
皇冠体育appNetCenter has 2,000 customers currently, among which Tencent is the largest. In addition, 皇冠体育appNetCenter is the main CDN provider for Tencent, Netease, Sohu and Sina, the four Chinese Internet portals.
皇冠体育appNetCenter financial data from 2005 to 2010
Monetary unit: RMB Yuan
Items??????????????????? ?Year 2005????????????? Year 2006?????????????? ?Year 2007
Operating revenue????? ????? ? ?--??????????????????69,009,500???????????? ?119,323,092
Net profit attributable
to shareholders of
listed companies????????? ????? ??--??????????????????16,241,200????????????? 25,481,168
Consolidated gross
profit margin???????????? ????????? ?--??????????????????44.76%????????????????? ??42.93%
Growth rate of CDN
business (year-on-year)????? ?--?????????????????? --???????????????????????? ?181.41%
Items?????????????????????????? Year 2008??????????????? Year 2009???????????First half of 2010
Operating revenue???????? ?239,031,077???????????? 287,013,386????????????150,093,015
Net profit attributable
to shareholders of
listed companies??????????? ?37,078,501????????????? 38,851,373?????????????? 14,983,248
Consolidated gross
profit margin????????????????? ?35.50%?????????????????? ? 33.80%???????????????? ? 33.59%
Growth rate of CDN
business (year-on-year)?? ?239.64%????????????????? 58.78%?????????????????? 27.38%
皇冠体育appCache financial data from 2005 to 2010
Monetary unit: RMB Yuan
Items???????????????????????? ?Year 2005???????????? ?Year 2006?????????? ? Year 2007
Net revenues???????????? ?? 47,025,000????????????? 70,033,000??????????? 160,973,000
Net loss?????????????????? ???? 5,278,000???????????????29,790,000????????????87,913,000
Net loss attributable
to ordinary shareholders??? 7,378,000?????????????36,397,000??????????? 99,215,000
Consolidated gross
profit margin????????????? ???? 44.06%?????????????????? 33.20%????????????????-6.17%
Growth rate of CDN
business (year-on-year)???? ?--???????????????????? ?48.93%??????????????? 129.85%
Items???????????????????????????? Year 2008??????????????? Year 2009?????????? First half of 2010
Net revenues?????????????????? 291,404,000??????????????272,370,000??????????????170,342,000
Net loss????????????????????? ?151,800,000??????????????? ?39,167,000??????????????24,201,000
Net loss attributable
to ordinary shareholders?????162,981,000???????????75,244,000??????????????52,026,000
Consolidated gross
profit margin????????????????? ??6.23%????????????????????? ?24.30%??????????????????30.45%
Growth rate of CDN
business (year-on-year)?????????81.03%???????????????? -6.53%??????????????????28.86%?
(Data Source: Application Document F-1 for IPO in the US 皇冠体育appCache reported to the Securities and Exchange Commission (SEC) and 皇冠体育appNetCenter Public Financial Report)
