Business Treasure: Research On "Small Portal + Alliance" Mode

We expect the company's earnings per share for 2010-12 years to be RMB 0.40 yuan, 0.55 yuan and 0.80 yuan.

The valuation is reasonable.

The main findings are:?

B2B e-commerce website development space is still broad.

In 2009, the penetration of e-commerce in SMEs was only around 9%, and the space for further growth in the future was larger.

The company's "small portal + alliance" business model is unique in the field of B2B e-commerce in China.

At present, the company has a number of specialized vertical e-commerce platforms, and operates a comprehensive B2B platform business treasure.

After several years of construction and promotion, we expect that the company will enter the harvest period in 2011-12 years.

The business and business development of the company is in good condition.

In the first half of 2010, the proportion of total income reached 17.2%.

With the maturity of the company's technology readiness, the number of paid users is expected to increase rapidly in the future.

In addition, a number of value-added services have been promoted smoothly, improving user stickiness and creating new profit sources.

The company's valuation level in 2011 was 51 times that of the current A share Internet Co's 2011 earnings ratio (about 50 times), and the valuation was reasonable.

Company profile and ownership structure

Business treasure (formerly Zhejiang Sinochem Network Technology Co., Ltd.) was founded in August 7, 2000.

The company's main operations: China chemical network, global chemical network, China Textile Network, medical website and other industrial websites and business treasure website (www.toocle.cn) are engaged in comprehensive e-commerce operation.

The company's business line has also been extended to offline, such as providing chemical Maori services (reach certification services) and offline exhibition services for small and medium-sized chemical enterprises to export to the EU.

The controlling shareholder of the company is Hangzhou Zhongda Information Technology Co., Ltd., holding 48.75% of the company's shares. The actual controller of the company is Mr. Sun Deliang, the chairman of the company.

The company is currently ranked fifth in the domestic market share of B2B e-commerce platform operators.

At present, the main third party B2B platform operators in China are Alibaba, global resources network, focus technology, Huicong network and business treasure.

The company's total revenue in the first half of 2010 was 74 million 850 thousand yuan.

Among them, the income of network infrastructure services, network information promotion services and advertising distribution services were 24 million 530 thousand yuan, 19 million 490 thousand yuan and 13 million 890 thousand yuan respectively, accounting for 32%, 26% and 19% of the total revenue.

From the perspective of future development, business business, chemical trade service and exhibition service have brought new business growth points to the company. Business e-commerce services revenue has increased by 109.7% over the same period last year, and chemical trade service revenue has increased by 332.2% over the same period last year. The service revenue of the exhibition has increased by 148.5% over the same period last year.

The website of the company's operation includes: (1) China chemical network, global chemical network, China textile net, China clothing network, medicine net and other industry websites; (2) small portal alliance website business treasure; (3) China exhibition network and other value-added service websites.

In addition, the company also operates e-commerce services, trade exhibition services and other offline services.

According to the product category, the company's chemical website revenue reached 39 million 670 thousand yuan in the first half of 2010, an increase of 20% over the same period last year.

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Industry analysis

B2B e-commerce is still worth watching.

The number of small and medium-sized enterprises in China is over 4200, accounting for 99% of the total number of enterprises in the country. The total industrial output value and the total profit and tax volume account for 60% and 40% of the total national total, respectively, and the number of jobs offered is 75% of the total number of urban employment in the whole country.

According to the State Administration of industry and commerce data, as of 2009, the number of small and medium-sized enterprises with e-commerce application capacity has reached 3995.6, an increase of 3.8% over the same period last year.

Among them, the number of small and medium-sized enterprises using third party B2B e-commerce services is 1702, accounting for 42.6%.

Different from large and medium-sized enterprises, small and medium-sized enterprises have great disadvantages in developing their own market and obtaining industry information.

Therefore, SMEs have huge commercial needs for intermediary services and information services provided by B2B e-commerce platform.

We believe that there will be great room for development of the B2B e-commerce platform in the future, mainly based on: (1) the pformation of economic structure will be conducive to the rapid growth of SMEs.

The growth of the number and business volume of small and medium-sized enterprises will increase the demand for e-commerce services of SMEs. (2) the penetration of e-commerce will be improved.

According to AI consulting, the penetration rate of e-commerce in small and medium-sized enterprises is around 10% in 2009, and will grow steadily in the future. It is expected to reach 20% in 2013.

Vertical e-commerce and integrated e-business

According to the different industries involved in the B2B platform, it can be divided into two categories: comprehensive platform and vertical platform.

The comprehensive platform can provide users with information and e-commerce services in many industries, with a wide coverage of users, but the industry lacks depth.

The representative company in this field is the Alibaba.

Vertical platform is mainly to provide B2B e-commerce services for one or several industries, and professionalism is the primary factor for customers to choose vertical e-commerce platform.

The representative company in this field is a business treasure.

The advantage of vertical e-commerce platform is that it can provide more professional and meticulous information than the comprehensive platform, and at the same time, the target customers are more concentrated, so that the enterprises in the same industry can communicate with each other.

At present, there are many vertical e-commerce websites in China, but most of them are difficult to scale.

So the website of the industry alliance was born, providing a unified user interface for many small industry portals. Business treasure is the executor of this way.

Vertical B2B websites are intensive in professional search and information and so on, so as to maximize the professional advantage of the industry and occupy a place in the competitive e-commerce website.

We believe that e-commerce websites will be further developed in the future, and vertical e-commerce websites will have the opportunity of rapid development.