Great wisdom is coming to an awkward crossroads

Absrtact: 03 Months after the listing, great Wisdom (601519.SH) is coming to an awkward crossroads. After 2010, 2011 net profit has shrunk 14% and 34%, the big wisdom in the first quarter of this year into a loss (-16.65 million). The market value, assets, users, revenue, net profit

Listing 03 months in a year, great Wisdom (601519.SH) is coming to an awkward crossroads.

After 2010, 2011 net profit has shrunk 14% and 34%, the big wisdom in the first quarter of this year into a loss (-16.65 million). What happened to the five first companies, "market capitalisation, assets, users, revenue, net profits"?

A domestic financial information company executives said, "the loss is due to the big wisdom of the personal business is shrinking, the market is not good, the product also has no characteristics." ”

By contrast, rivals have been flush with the agency's business 2-3 years ago, and eastern wealth will serve as the second largest business. This may be why the two companies can still maintain 11.25 million, 24.15 million of earnings in the context of a weaker stock market.

This year, despite the decline in performance, great wisdom did not stop the pace of expansion and acquisitions. "Its biggest problem, in fact, is not to think about their own direction." "said the top executives of financial information companies.

Personal business strife: Gross margin low 8%

In 2011, the revenue from the great wisdom of the financial information business shrank sharply: from 2010 480 million to 2011 390 million, down nearly 20%.

In contrast, the same flush of financial information revenue in 2011 maintained a growth rate of 7.45%. Due to the small revenue base, Oriental Wealth 2011 Financial Information business revenue growth rate of 76%.

"In fact, in the past two years the stock market has weakened and the personal business has fallen badly, which is an industry problem." A broker in Shenzhen told reporters.

According to Financial weekly statistics found that the financial information business income in the great wisdom of total revenue accounted for, but also in the year down: 2008 90.3%, 2009 92.7%, 2010 85%,2011 anxious to 69%. If personal business is hit hard, the performance of great wisdom is a mishap.

However, the great wisdom of the financial information business is not only "aggression", but also "internal".

The wisdom of the personal information business of the early years was well done because the data purchased from the SSE included the sale of seats. Later, policy rules only sell LEVEL2 data.

Although the LEVEL2 data has also done some digging, but it is not helpful to fry. So in the case of bad market, investors are less willing to spend tens of thousands of yuan to buy. Shenzhen a senior shareholder said.

"The wisdom of doing personal business has been applied to the old model for years," said the senior executives of financial information companies. The industry is not very optimistic. We believe that companies should seek new strategic directions. ”

It is worth noting that the profit level of the great Intelligence financial information business is far lower than flush and oriental wealth. According to Financial weekly statistics, big wisdom, flush and oriental Wealth three companies financial information business gross profit margin of 78%, 85% and 81% respectively. The gross profit margin of great wisdom is 8% lower than the same flower.

Absence of institutional business, unprecedented pressure

In the context of personal business involvement in the stock market downturn, some financial information service enterprises have cut into the institutional business.

Flush with the 2009 began to force the agency, the same year launched a high-end products with flowers shun large institutions, financial information business income achieved 76% of the high growth. In the past three years, flush in the product research and development of the cost of investment, respectively, accounted for the main business of 26%, 25%, 36%.

"There is a high rate of renewal of the agency's business and use it regardless of the good market." The proportion of foreign institutions ' business and personal business is 8:2, in contrast, we think that there is still a lot of room for exploration in the institutional business. "The same flower Shun insiders told reporters.

"Institutional business is the development trend of financial information service providers." "said the Shenzhen securities broker.

The industry's war has been intensified, the smoke. And in the rapid rise of institutional business trends, great wisdom is absent.

In the 2011, when the same flush of institutional business ushered in the harvest period, enough in the institutional market to compete with the information, the great wisdom still can't take a bullet.

In fact, in 2011 when the big Wisdom launched the first step of capital operation-the acquisition of Shanghai Financial Exchange, the company's main service target is institutional investors. Shanghai Financial Exchange Net assets book value is 11.62 million, but the purchase price is as high as 109 million, the premium 9.29 times times. The benefits of integration are unknown.

"Despite the acquisition of the Shanghai Treasury, there is no news that great wisdom is entering the agency business," he said. "said the senior financial information company executives.

April 25, financial weekly reporter call Big wisdom dong, securities representative 嵇绯 Fei said, "the company will convene a shareholder meeting, may not be able to reply." As of press, the reporter did not receive great wisdom reply.

Dilemma: The game of expansion and performance

"The great wisdom of the performance decline, in fact, from the great wisdom of the strong style." In the dilemma between expansion and performance, great wisdom chooses expansion.

If it does not expand, it will face great pressure from competitors, but if the expansion is not up to expectations, the performance will be more ugly. Shenzhen securities dealers said to reporters.

In the first quarter of the report, the wisdom of the loss of the explanation is: currently in the product development investment and business upgrade period.

In fact, great wisdom is a radical. Since the January 28, 2011 listing, great wisdom in personnel expansion, advertising, strategic mergers and acquisitions have a larger action.

In terms of staff expansion, the size of the big wisdom staff expanded from 451 in 2010 to twice times more than 1079 in 2011. And the same period flush, oriental wealth of staff size of 933 people, 772 people.

Big wisdom of the sales costs accounted for in the industry is also high. 2009-2011 with the flower shun sales cost rate of 10.92%, 12.55%, 11.8%, far below the wisdom of 19.76%, 29.67% and 32.36%.

"Big wisdom in marketing will be a lot of investment, everywhere can see its ads." "said the Shenzhen securities broker.

and mergers and acquisitions, almost become the great wisdom of 2011 years of key words.

Since the listing, great wisdom has acquired or proposed to acquire a number of companies, including Shanghai Financial Exchange, Hong Kong Aastock, and the world of China Financial news and Shanghai Long soft.

"Great wisdom has a lot of extra money, but it may not have been a good project to invest," said the senior executives of the financial information company. The company may not have a good direction yet. ”