Investment Rating - The investment rating for the company is "Buy" [9] Core Insights - The report highlights that the current bull market is characterized by a shift in investor habits, with a greater reliance on professional investment advisory content and multimedia channels for information. This change drives industry suppliers to enhance their content professionalism and outreach channels to adapt to new market demands. The company has a clear first-mover advantage in building internet channels and has demonstrated strong Alpha attributes in this bull market due to its comprehensive business model built around an account matrix [2][4][14]. Summary by Sections Company Overview - The company, formerly known as Jiufang Wealth, was established in 1996 and is a leading provider of online high-end investment education services in China. It was one of the first companies to obtain a securities investment advisory license from the China Securities Regulatory Commission in 1998. The company utilizes multimedia to provide financial information and content to individual investors, operating a business model that combines MCN account traffic generation with private domain traffic retention [5][36]. Market Dynamics - The report notes significant changes in the capital market this year, including a substantial increase in the proportion of trading volume attributed to ETFs and the entry of a new group of investors, necessitating a more targeted approach from third-party advisory firms. The new investor group shows a marked increase in dependence on professional investment advisors and internet channels for financial information [4][21][23]. Competitive Advantages - The company possesses several key advantages: 1. A rare investment advisory license that provides compliance advantages 2. A well-structured organization that ensures stable content output 3. A robust cost structure that enhances operational leverage. These advantages enable the company to translate its high-quality operations directly into earnings per share (EPS) [6][7][14]. Business Model - The company's business model is divided into two systems: a traffic system and a product system. The traffic system includes both public and private domains, utilizing an MCN account matrix to attract users through differentiated content on platforms like Douyin and WeChat. The primary services offered include investment advisory services, with recent product launches aimed at enhancing user engagement and retention [40][42]. Financial Performance - The company's revenue is closely tied to trading volume, with order income and cost expenses providing a clearer reflection of current operational conditions. The report indicates that the company's revenue and order income exhibit a semi-annual lag due to the typical six-month service period of its products [42][46]. The revenue structure is balanced between high-end investment education services and financial information software services, each contributing approximately 50% to total revenue [49]. Cost Structure - The company maintains a high gross margin, with a net margin impacted by accounting adjustments and investment volatility. The report details that in the first half of 2024, the company's gross margin was 80.0%, while the net margin was -19.4%. Sales expenses constitute the largest portion of total costs, with a significant focus on employee costs [56][62]. Future Outlook - The report expresses optimism regarding the company's ability to leverage its first-mover advantage in the short video era and its strong research team to provide high-quality content products, thereby capturing market opportunities and increasing market share [34][36].
九方智投控股：顺势而为，成就Beta中的Beta