\u3000\u3000 Beijing Jetsen Technology Co.Ltd(300182) (300182)
Key investment points
Event: Beijing Jetsen Technology Co.Ltd(300182) holding] Sun company Xinjiang Huaxiu recently signed a "film and television program authorization contract" with Tencent, with a total contract amount of 1.8 billion yuan (including tax), accounting for 56.5% of the audited operating revenue in 2020. The daily operating contract amount signed between Xinjiang Huaxiu and Tencent is large, which may contribute a large increment to the company's operating performance in the future.
1.8 billion film and television programs were authorized to land, and the long-term cooperation with high-quality customers was further deepened. Xinjiang Huaxiu is the holding subsidiary of Jiecheng Huashi netju (Changzhou), a 96% holding subsidiary of Beijing Jetsen Technology Co.Ltd(300182) , with an equity ratio of 100%. After signing this contract, Xinjiang Huaxiu authorized Tencent to enjoy the right of information network dissemination within the scope agreed in the contract with a total number of no less than 6332 film and television programs such as "golden age". The company has cooperated with Tencent for many years. In the three fiscal years 2019-2021, the transaction amounts of the two sides were 729 million yuan, 372 million yuan and 450 million yuan respectively (accounting for 25%, 15% and 15% of the company's total revenue respectively). The implementation of this contract is expected to continue to consolidate the basis of cooperation between the company and high-quality customers, expand the company's market influence, and the advantage of content copyright has been fully reflected.
Focus on content copyright operation and continue to consolidate the advantages of the main business. In 2021, the company's new media copyright operation and distribution business is expected to record a revenue of about 3.087 billion yuan, a year-on-year increase of 28.4%, and realize a net profit of about 561 million yuan. The company is the largest content copyright integration service provider in China, with more than 50000 hours of exclusive network broadcasting rights, leading the industry in terms of stock copyright reserves, and has built a digital copyright industry ecosystem with integrated services of the whole industry. At the same time, it has video terminals such as Tencent, Youku, iqiyi and mango, operators such as China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) and high-quality customers such as hardware providers such as Huawei and Xiaomi. It continues to cultivate customer needs and cooperation and improve the distribution of the film library; At the same time, explore new business models and explore joint operation and cooperation by focusing on the rich content resources of Huashi Netcom; The well-known American drama friends, which has the exclusive right of information network dissemination, was also launched on the whole platform on February 11.
Issue equity incentive plan to bind the interests of core employees. The company plans to grant a total of no more than 180 million restricted shares, of which the company plans to grant 144 million restricted shares to 101 incentive objects for the first time at the price of 2.58 yuan / share. The assessment target net profit in 2022 and 2023 is RMB 700 million and RMB 900 million respectively. The equity incentive policy may effectively bind the interests of core employees, build a community of interests of the company and improve the internal driving force of performance growth.
Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 489 million yuan, 704 million yuan and 865 million yuan, corresponding to 37 times, 26 times and 21 times of PE respectively. The company is a leading enterprise in China's film and television content copyright. Shiyou technology, a joint-stock company, has arranged the yuanuniverse track. The virtual human business closed loop of "IP + operation" has initially taken shape, and large orders may have a positive impact on the company's subsequent performance. To sum up, we maintain the "buy" investment rating and recommend attention.
Risk tip: the risk of intensified market competition, the risk that the UHD industrial policy is less than expected, the risk of significant changes in downstream demand, and the risk of asset impairment.
