03 Oct 2024

BFH 1H24 revenue increased by 43.8% YoY to Rmb622m, with its new media services segment up by 43.9% YoY to Rmb564m and accounted for 90.6% of 1H24 total revenue. The robust growth in sales was mainly attributed by its successful cross-platform operations on Douyin, Taobao and JD. GMV of its live-streaming e-commerce reached Rmb5.96bn in 1H24, up by 18.2% YoY. Sales from TV broadcasting segment was also up by 42.6% YoY to Rmb58m with increasing new projects and improving annual budgets of clients. Overall GPM down 5ppt to 51.5% during the period on higher cost in streamers, yet still within a healthy range. Selling expenses were up by 42.2% YoY and its ratio to sales down by 0.3ppt to 24.6%, with the increase mainly due to an increase in salary and wage expenses for the recruitment and reserve planning for marketing talents. Admin expenses were down by 7.6% YoY on the back of a decline in share-based payments during the period. As a result, 1H24 net profit was up by 93.8% YoY to Rmb84m, while if excluded share-based payments and other one-off items, adjusted NP was up by 17.0% YoY to Rmb111m, with adjusted NPM down 3.1ppt to 17.8%. The company did not recommend any interim dividends during the period (1H23: nil).

CROSBY Research – Be Friends (1450 HK/NR): Expects a 30-40% YoY sales growth in FY24