\u3000\u3000 Genimous Technology Co.Ltd(000676) (000676)
Event: Genimous Technology Co.Ltd(000676) released the annual performance forecast for 2021. The company expects to make a profit of 130 million yuan in 2021, which mainly benefits from the focus of the company's business and the obvious improvement of the company's performance.
Investment highlights:
Focus on the core business and steadily improve the profitability of the company. The main reasons for the company's performance to turn loss into profit in 2021 are as follows: 1) optimize the digital marketing business structure and improve the overall gross profit margin. The company will shrink the effective marketing business with low gross profit margin in the digital marketing business and focus more on core customers and markets. The company launched advertising agency business with Huawei in September 2021. With the expansion of Hongmeng's business territory, various intelligent terminals can join Hongmeng's system, such as smart screen, smart speaker, smart TV, automatic driving, etc. in the future, the volume will continue to increase, Huawei's ecology will release greater commercial value, and the overall advertising revenue will be considerable, The Genimous Technology Co.Ltd(000676) unique generation sector (games, social networking and tools) is the largest sector of Huawei ads, which is expected to thicken the company's profits. 2) The marginal improvement of negative factors has opened up room for growth of overseas Internet media business. Overseas SPE companies and CFIUS of the US government have settled. The signing of the agreement is conducive to eliminating the uncertainty of business development. With its technology driven advantages, high-quality distribution strategy and optimized operation experience, the commercial liquidity is continuously enhanced.
The three parties set up a joint venture to create a new business ecology of yuanuniverse. The company, zhidu Group Co., Ltd., Guoguang Electric Company Limited(002045) jointly invested and established a joint venture Guangzhou zhidu universe Technology Co., Ltd. the joint venture initially focused on the development of social games and digital art meta universe projects based on VR environment. Social games: social game projects based on VR environment mainly use virtual reality, holographic vision and other technologies to connect cultural tourism and pan entertainment content. In the early stage, VR terminal is mainly used as the main entrance to realize the specific theme atmosphere required by various script plots and experience the panoramic immersive real person interaction scene; Digital art meta universe community: through VR, AR, Mr, blockchain, cloud computing, artificial intelligence and other technologies, realize the integration of online and offline virtual and real scenes, take VR terminal as the main entrance, provide rich creative tools and display methods, and create virtual exhibitions of artists' works with different themes and styles.
"Hardware + software" advantages build high barriers and cut into the meta universe track. With the help of the position and role of Guoguang Electric Company Limited(002045) in the VR equipment industry chain, combined with the blockchain technology developed by the company and its experience in game development, brand marketing and other fields, the company has laid out the meta universe ecology and continuously extended the application scenarios, which is expected to bring incremental space to the company's performance.
Profit forecast and investment rating: according to the announcement, the company changed the fair value measurement of Guoguang Electric Company Limited(002045) 11.5% shares to the equity method for accounting. Therefore, we adjusted the net profit attributable to the parent company for 21-23 years to 133 / 249 / 340 million yuan, EPS to 0.10/0.20/0.27 yuan and PE to 65 / 35 / 25 times respectively, maintaining the "buy" rating.
Risk tips: macroeconomic downturn, repeated global epidemics, intensified industry competition, and new businesses are not as expected
