\u3000\u3000 Beijing Yuanlong Yato Culture Dissemination Co.Ltd(002878) (002878)
Key investment points
Event: Bing dwen dwen, the opening of the February 4th Winter Olympic Games, has become one of the hot topics. It is hard to find a “pier” and the company is expected to be positively influenced by the Beijing Winter Olympic Games concession producers and retailers.
The franchise blessing of the Winter Olympic Games will help gifts to a higher level. Shuey Rhon Rhon Bing dwen dwen is a listed company that produces “ice pier” and “snow Rong Rong” plush toys as the licensed manufacturer and retailer of the Winter Olympic Games. Bing dwen dwen gifts include Bing dwen dwen toys, styling, hand holding, ornament buttons, crystal balls, and ice tower pier blind boxes, badges, precious metals and so on. “Bing dwen dwen” has been sold short since the opening of the Winter Olympics. At present, the company has organized the factory to start production in an all-round way, made every effort to coordinate production capacity rationing, and ensured the sales of licensed products for the Winter Olympic Games and traditional gifts through multiple channels and production lines. We believe that the continued popularity of Winter Olympic licensed goods is expected to bring certain performance flexibility to the company.
Deeply plough the gift track for many years, and the gift business is the main performance contribution point. The company landed in the A-share market in 2017 and is the first A-share listed company in China’s gift industry. As a core supplier, it has long served more than 100 well-known enterprises at home and abroad, such as Nestle, Wyeth, L’Oreal, Alibaba and so on, providing customers with comprehensive marketing services and marketing material solutions. The overall business development of the company remained stable. In the first half of 2021, the operating revenue was 932 million yuan (+ 9.8%), of which the total revenue of promotional products and promotional services was 551 million yuan, accounting for 59.1% of the total revenue. The revenue of licensed souvenirs and precious metals for the Beijing Winter Olympic Games was 70.738 million yuan (+ 36%), which is expected to further develop and expand the influence of gift business with the momentum of the Winter Olympic Games in the future.
Actively expand IP resource reserves and deepen cooperation with key customers. The company has five-year rights to use the IP series of Universal Pictures, such as “Kung Fu Panda”, “Madagascar” and “pieces”. The derivative products developed by IP can be marketed and sold in gift and point exchange channels; The company signed a distribution agreement with the high-end Baijiu Wuliangye Yibin Co.Ltd(000858) , and became the national distributor of its “eight party and” series of cultural liquor. The business mode changed from the 2B mode of the big customer service to the 2B and 2C mode. At the same time, the company actively develops new fields and new customers. In the first half of 21 years, new suppliers, such as millet, Kwai Fu, and many other large gifts and gift suppliers, will help improve the follow-up business performance.
Profit forecast and investment suggestions. The net profit of Bing dwen dwen in the 2021-2023 years is 120 million yuan, 192 million yuan and 239 million yuan respectively, corresponding to PE 55 times, 34 times and 28 times respectively. The company is a leading gift enterprise, and the winter’s products such as “ice pier” and so on, are expected to bring flexibility to the company’s performance, and the market influence will expand, and the IP resources of the company will be expanded. To sum up, we maintain the “buy” rating and recommend attention.
Risk warning: the risk of intensified market competition, the risk of customer loss, the risk of business integration or less than expected, and the risk of franchise business or less than expected.
