\u3000\u3000 Dalian Zeus Entertainment Co.Ltd(002354) (002354)
Key investment points
Event: the company released the performance forecast for 2021. It is estimated that the annual net profit attributable to the parent company will be 35-52 million yuan, a decrease of 66% - 77.1% compared with 153 million yuan in the same period in 2020, which is mainly due to the performance loss of some joint-stock companies and the company's plan to withdraw long-term equity investment impairment reserves for some joint-stock companies; It is estimated that the net profit loss after deduction of non parent company is 182-199 million yuan, a year-on-year decrease of 91.85% - 92.55%. The non recurring profit and loss is about 234 million yuan, mainly due to the transfer of 93.5% equity of Beijing fantasy Yueyou held by the company, which is expected to affect the company's net profit of about 130 million yuan.
Create a virtual human production platform and broaden the application scene of virtual human. In 2021, the company and Beijing Zhijing Future Technology Co., Ltd. jointly established Beijing Yuanjing Digital Technology Co., Ltd. to create an industrialized virtual human production line and reduce the production cycle and costs of virtual human. Superimposing the company's existing resource accumulation in e-sports, marketing and other fields, the virtual human of Yuanjing technology will be applied to game AI, star virtual image, marketing live broadcast and other scenes in the future; It can not only make its own virtual human, but also carry out virtual human research and development based on the production platform. Benefiting from the cost advantage of industrialized production, the company may promote the virtual human business to daily life to expand the virtual human to C-end business.
Develop digital marketing to boost the capacity of traffic delivery and distribution. The company has completed the establishment of China's precision digital marketing business team with Beijing as its headquarters and Chongqing, Zhengzhou and Taiyuan as its branches, and set up technology R & D, operation optimization and creative material production teams in Chongqing, Zhengzhou and Taiyuan to meet the needs of creative video shooting of various styles in real time. Up to now, the company's Shanxi data flow ecological park has invested more than 1.2 billion yuan, and has become an ecological service platform covering a variety of contents. In the first half of 2021, the total number of users of the company's Internet super traffic portal AISI assistant reached 247 million, and the total number of products reached 7428. During the reporting period, there were about 14.9 million new users and about 20 million monthly active users, forming a strong traffic distribution capacity.
Continue to optimize the layout of game business and expand the concept of "E-sports empowerment". In 2021, the company's Japanese Texas poker competitive product "sunny Poker" added 220000 users, with a total registration of more than 1.2 million, ahead of similar products. At the same time, the company will fully access its chess and card game products to wcaa cloud E-sports platform, innovate and create a "chess and card + E-sports" business model, and lead chess and card games to return to the origin of entertainment and competition through E-sports empowerment; In addition, the company will gradually expand the concept of "E-sports empowerment" and continue to explore the growth potential of leisure game market.
Profit forecast and investment suggestions. According to the latest performance forecast of the company in 2021, the net profit attributable to the parent company from 2021 to 2023 is expected to be 47 million yuan, 192 million yuan and 295 million yuan, corresponding to 161 times, 40 times and 26 times of PE respectively. Considering the rapid growth of the company's data traffic business and the strategic layout of the virtual human track, we maintain the investment rating of Dalian Zeus Entertainment Co.Ltd(002354) .
Risk warning: the risk of industry development falling short of expectations, the risk of industrial policy changes, and the risk of intensified market competition
