\u3000\u3000 Beijing Jetsen Technology Co.Ltd(300182) (300182)
Event overview
On February 13, 2022, Beijing Jetsen Technology Co.Ltd(300182) announced that Xinjiang Huaxiu, a wholly-owned subsidiary of China television network gathering, recently signed a film and television program licensing contract with Tencent, with a contract amount of 1.8 billion yuan, accounting for 56.54% of the audited operating revenue in 2020. If the contract is successfully performed, it is expected to have a positive impact on the company’s future financial situation and operating results.
Tencent’s orders have landed, and its business inflection point has arrived. It has exclusively released the classic American drama friends
According to the announcement, the total number of “golden age” and other film and television programs authorized by the company to enjoy the rights of this contract shall not be less than 6332, and the information network communication right within the scope agreed in the contract. The company has a massive content copyright library with more than 50000 hours, which is firmly the leader in the film and television copyright industry. With the accumulation of film library year by year, the business model is gradually upgraded, and the growth space is expected. Since the outbreak of covid-19 epidemic in 2020, the company has increased the distribution of large film libraries and further improved the liquidity of film libraries. This time, the company signed an authorization order of RMB 1.8 billion with Tencent to further verify the liquidity value of the company’s copyright library. The signing of Tencent’s orders will bring considerable and stable cash flow support for the company’s continued business expansion and development in the future. Combined with the annual report performance forecast released by the company, it is expected to realize a net profit attributable to the parent company of 450-490 million yuan in 2021, turning losses into profits year-on-year. We judge that the company, as the leader of film and television rights, has reached the inflection point of operation and can grow in the future!
On the evening of February 11, 2022, the classic American TV sitcom “friends” was launched on many head video platforms such as Tencent, iqiyi, Youku and station B. The Hits / views data were bright, and the topics related to “friends” were listed on the microblog hot search list. The play was released by the exclusive new media of Jiecheng Huashi online gathering. Winning the exclusive information network communication right of the well-known IP once again confirms the company’s advantageous position in the field of film and television copyright and reflects the company’s high-quality resource channels and cooperation ability in the industry. The successful issuance of friends is expected to promote the company to further deepen the layout of overseas classic film and television copyright and create incremental performance for the company’s operation.
Shiyou technology’s performance doubled in 2021q4, and the digital virtual human technology industry took the lead
According to the announcement of the company, Shiyou technology, a subsidiary of the company engaged in digital virtual human business, achieved a revenue of 34.3799 million yuan and a net profit of 8.0435 million yuan in 2021, including 11.6735 million yuan in the first three quarters and 3.339 million yuan in net profit. It is calculated that the realized revenue in Q4 single quarter of 2021 was 22.7064 million yuan and the net profit was 4.745 million yuan, Q4 single quarter performance doubled. Focusing on the R & D and application of real-time virtual technology, Shiyou technology is one of the few self-developed platforms for virtual real-time / fast virtual content production and virtual IP production in China. In the past, it has implemented digital virtual application cases including leading customers in radio and television, Internet and brand customers, education, film and television animation and other industries, At present, it is one of the few A-share listed companies related to yuancosmos that not only has independently developed patented technology, but also can achieve considerable performance.
The spring breeze of industrial policies continues, and equity incentive and asset stripping ensure sustainable and healthy development
Since the second half of 2021, policy documents such as the outline of strengthening the country with intellectual property rights, the 14th five year plan for the film industry, the detailed rules for the review of short video content, the 14th five year plan for the development of digital economy and the 14th five year plan for the development of Chinese TV dramas have significantly benefited the long-term development of the company’s film and television copyright operation business. The company invested in Shiyou technology in 2016 to advance the layout of virtual technology. 2022 is the first year of metauniverse. The company has made continuous breakthroughs in the underlying technology of metauniverse and continued to explore the business forms of metauniverse such as virtual copyright operation and virtual idol. In the third quarter of 2021, the company released the equity incentive plan, which targets the company’s senior executives and core business backbones, providing guarantee for the sustainable and healthy development of the company’s main business. In December 2021, the company completed the divestiture of assets, and in 2022, the young people will be put into battle, which is expected to achieve further growth in operating performance.
Investment advice: maintain the “buy” rating
As the company signed Tencent’s order of 1.8 billion yuan, we raised the company’s profit forecast, and the revenue forecast from 2021 to 2023 increased from 36.04/43.60/5.254 billion yuan to 36.04/48.49/55, The closing profit of the parent stock of RMB 1.89 billion and RMB 1.87 billion in 2024 / 05 increased from RMB 1.89 billion and RMB 2.70 billion respectively, corresponding to the predicted closing profit of RMB 1.89 billion and RMB 2.70 billion respectively. At present, the company’s film and television copyright business barriers are high, and the signing of an order of 1.8 billion yuan with Tencent is expected to bring considerable cash support for the company’s business expansion. We believe that the inflection point of the company’s business level has reached, the valuation level is expected to be further improved, and the “buy” rating will be maintained.
Risk tips
The introduction progress of strategic investment shareholders is less than expected; The performance progress of film and television copyright contract is less than expected; Shiyou technology has a small volume, which will not have a significant impact on the company’s revenue and profit at present, and there is still uncertainty about the impact on the company’s performance and operating results in subsequent years.
