\u3000\u3000 Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) (603466)
Upgrading from a leading enterprise in China’s exhibition industry to a leading enterprise in China’s digital technology industry
Leading enterprises in the application field
As the leading enterprise in China’s digital display industry, about 80% of the company’s operating revenue in the first three quarters of 2021 came from creative design, interactive experience, CGI special effects, VR / AR, holographic image and other software and hardware system integration services, and the decoration part accounted for only 20% of the revenue, The promotion of digital technology has laid the potential to improve the company’s gross profit margin (the sales gross profit margin increased from 28.7% in 2019 to 35.9% in the first three quarters of 2021).
At the main business end, by the end of 2021, the company’s orders on hand were about 5.462 billion yuan (a year-on-year increase of 1.39%), and abundant orders on hand formed a strong support for the subsequent development of the main business; On the new volume side, external scientific and technological progress and technological development are conducive to the embodiment of the company’s better scene application ability. In addition, the company maintains the sensitivity of industry development, actively expands new business and makes advanced application of cutting-edge technologies. In 2021, it will continue to increase R & D investment in 3D design in the field of digital technology. The development and investment of digital technology is expected to further enable the company’s main business to bring premium space, And help to enhance its differentiated competitiveness.
After the outbreak, the company actively adjusted the structure, and the revenue increased by 30.3% and the profit attributable to the parent company increased by 32.5% in 2021
From 2019 to 2021, the growth rate of the company’s operating revenue was 18.8%, 11.2% and 30.3% respectively, and the growth rate of net profit attributable to the parent company was 24.3%, 30.6% and 32.5%. The steady growth of the company’s revenue in 2021 was due to the active promotion of the application scenario diversification strategy and the efforts to expand the application of digital experience business in public cultural space, cultural and tourism space and other scenarios. The business of the company’s culture and brand digital experience space grew rapidly; In the fourth quarter of 2021, the profit attributable to the parent company was 63 million yuan (down 6.9% year-on-year, narrower than that in the third quarter). Under the post epidemic situation, the company strengthened fine management to alleviate the cost pressure under the price rise of materials and equipment, and made quarterly improvement.
Looking at the new increment of the combination of virtual and real experience economy in 2022
Under the epidemic situation after 2020-2021, on the one hand, the company adjusted the structure and optimized the fine management of its main business, on the other hand, the exploration of new business continued. In the second half of 2021, the company actively embraced the digital technology under the meta universe and strategically invested in the “Lingjing oasis” under zero environment mutual entertainment. The company is good at building digital scenes by combining space design, 3D modeling, real-time rendering, CG special effects, human-computer interaction, VR / AR and other technologies. In January 2022, the company cooperated strategically with Xingyi cinema to jointly explore new scenes of the combination of virtual and real, At the same time, the company has also reached a cooperative relationship with Baidu xirang. In metauniverse, the company is expected to create Shanghai New World Co.Ltd(600628) again and shine the scene application ability in the virtual and real world.
Profit forecast
It is predicted that the company’s revenue from 2021 to 2023 will be 2.94 billion yuan, 3.53 billion yuan and 4.24 billion yuan respectively, the profit attributable to the parent company will be 454 million yuan, 544 million yuan and 656 million yuan respectively, the EPS will be 108 million yuan, 1.29 million yuan and 1.56 yuan respectively, and the current share price corresponding to PE will be 25, 21 and 17 times respectively. The company’s technical advantages in the field of digital technology application and rich resources accumulated in the fields of digital art and immersive experience, It is expected to help it become a leading digital experience service provider in China. At the same time, it will continue to maintain the enterprise evolution ability under the steady growth of its main business, continue to empower its main business with new technologies, and then give a “recommended” investment rating.
Risk tips
Market competition intensifies risks; Risk of recovery of accounts receivable; Project cost control risk and project implementation management risk; Risk of loss of core technical personnel; The risk that the progress of external coordination and cooperation is less than expected; Macroeconomic fluctuations.
