According to the research report released by Guosheng securities, the first “buy” rating given to edvison group (09919) is expected to realize a net profit attributable to the parent of 86.34 million yuan / 120 million yuan / 150 million yuan in 2021-23, with a year-on-year increase of 268.7% / 34.2% / 27.5%. It is expected that the EPS in 2022-23 will be 0.15 and 0.20 yuan / share, and the current share price corresponding to PE is 9 / 7 times. Due to the subsequent growth center of the company maintained at about 30%, referring to the performance of peers in 2022, The target price is HK $2.8, corresponding to 15 times PE in 2022.
the main viewpoints of Guosheng securities are as follows:
ed Weixuan: China’s leading pan fashion data interactive marketing group.
Officially established in 2013, the company is a leading pan fashion brand data interactive marketing group in China. Its business covers experience marketing services, digital new marketing services and IP expansion. It has maintained a cooperative relationship with Chanel, Dior, LV and other international top brands for more than 12 years, covering more than 500 brands. According to the consulting report, in 2020, the company was the largest experience marketing service provider in Greater China, with a market share of 7%. According to the company’s announcement, in 2021h1, the company achieved an operating revenue of 390 million yuan / + 436.5%, and a net profit of 35.5 million yuan. After the epidemic, the company reversed its losses, and the net profit margin reached 10.0%.
marketing solutions trillion market: high luxury brands focus on experience marketing and diversified transformation of digital marketing; The marketing demand for popular brands grew steadily.
Marketing solution providers are located in the second link of the market value chain. According to insight consulting, the market scale of Greater China marketing solution services in 2018 was 890.6 billion yuan, with CAGR of about 9.3% in the previous four years, of which digital marketing and experience marketing accounted for 43.5% and 4.0% respectively. In terms of current segmentation: 1) high luxury brand benefits from consumption upgrading, strong purchasing power of generation Z & millennials, high increase of consumption return to the overall market and high brand marketing investment. Its marketing expenditure reached 28.5 billion yuan in 2019, of which experience marketing is an important part (accounting for 36.5% of the scale of high luxury marketing market), and the pattern is more concentrated than other marketing modes; Tiktok and KOL are popular in the diversified transformation of digital marketing mode, and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) linkage expansion. 2) the demand for mass consumer marketing also grew steadily. By 2018, the scale of digital marketing / experience marketing / public relations in the marketing solution service market of brands such as China Volkswagen was 378.4 billion / 27.8 billion / 31.1 billion yuan respectively, compared with 27.2% / 12.3% / 12.8% respectively in the previous four years.
company: leading creativity, team and experience, high luxury customers, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration and further expansion, and the main business scale is expected to grow steadily.
1) team structure is stable. Several senior executives have been deeply involved in the industry for many years and have adopted the partnership system to stimulate the vitality of the team. 2) customer stickiness is high. Deep cultivation of the industry, with a multi person creative team and accumulated many years of industry experience, with Wuxi Online Offline Communication Information Technology Co.Ltd(300959) one-stop integrated marketing layout, and reached stable cooperative relations with multiple high-end brands. 3) fully integrated marketing highlights its advantages. As one of the few marketing service providers that can provide Wuxi Online Offline Communication Information Technology Co.Ltd(300959) full integrated marketing, it reaches consumers through publicity on the front line of the event, offline activities, and online secondary fermentation after the event, resulting in outstanding integrated marketing effect. Luxury + national trend is rising. The bank predicts that the investment in high luxury and national trend marketing is expected to reach 100 billion from 2021 to 2023. As a leader in high-end brand marketing services, the company’s marketing business revenue is expected to grow steadily.
follow the trend and explore diversified marketing layout with the help of advantages; The layout of new services continues to expand, and IP services are expected to recover and contribute to the increment after the epidemic.
The company is in line with the market trend, experiencing the layout of tiktok and leading MCN agencies to set up joint venture company to jointly direct the live business of the direct seeding business, and sign many new artists to expand the live broadcast of the business. Establish the pan fashion MCN business brand avantplus, focus on the business brokerage and social platform operation business of star talent, cooperate with Hong Kong land and Fosun fashion, layout the meta universe business, constantly explore new business growth points and enable the business closed loop. In addition, IP services are expected to recover and contribute to the increment after the epidemic.
investment suggestions: as a leading pan fashion data interactive marketing company in China, the company has rich team experience, a solid customer base and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) full integration advantages; Its high luxury experience marketing business has advantages over its peers. With the accumulation of original brands and personnel, it complies with the trend of online and diversified marketing, integrates all channels and continuously increases its weight, and its performance is expected to grow steadily; And carry out meta universe layout, and constantly explore new business growth points, which is expected to enable business closed-loop.
risk tip: customers lose due to irresistible factors; Repeated outbreaks hinder offline activities; Industry competition intensifies.
