\u3000\u3000 Dalian Zeus Entertainment Co.Ltd(002354) (002354)
Event: the company recently released a performance forecast. In 2021, the net profit was about 35-52 million yuan, a year-on-year decrease of 66.0% – 77.11%, and the estimated loss after deduction was 182-199 million yuan.
After the reorganization, the company gradually divested or accrued the original loss business, and various non recurring profits and losses had a great impact on the performance. The decline in performance in 2021 was mainly due to the large losses of some joint-stock companies and the impairment of long-term equity investment. On the other hand, the company’s transfer of all equity of its subsidiary fantasy Yueyou is expected to affect the net profit of about 130 million yuan; It is expected that the company will continue to deal with relevant loss making assets in the future, further optimize the asset structure and business layout, and completely improve the situation that profits are dragged down by participating companies while providing sufficient capital and resource support for new businesses.
Create a closed-loop business of “traffic operation – Product Development – brand service”. In terms of traffic operation, the company’s data traffic ecological park has gathered more than 130 enterprises, with a traffic investment scale of more than 1.3 billion yuan. Relying on the aggregated benefits of the ecological park, the newly established digital marketing business line realized an income of 1 billion yuan + that year, which formed an effective complementarity with AISI assistant, a self owned traffic platform with a life of 20 million months. On this basis, the company’s “quasi medical beauty” brand FAITH (Fei Yi Si), once launched, became a bomb, and successfully climbed the top of the tiktok to import the beauty makeup explosive list TOP1.
The “chess and card + E-sports” event continued to be hot, and the Japanese service depo products reached the top of applestore. In 2021, the company’s green chess and card e-game product “Dezhou poker master” successively held a series of events such as the Spring Festival challenge and Dezhou poker spring competition, and reached official cooperation with tiger tooth platform, with the popularity of the event exceeding 100 million; Overseas, sunvypoker, its Japanese Debo competitive product, added 220000 new users without buying in 2021, with a total registered number of more than 1.2 million, accounting for 1% of the Japanese population, far exceeding similar products. It ranked first in the IOS Japan poker game download list and top 10 in the smooth sales list throughout the year. In the future, the company may replicate the successful experience of Japan to other overseas regions to create new profit growth points.
Layout intelligent digital human direction. In 2021, the company established a joint venture with Beijing Zhijing Future Technology Co., Ltd., which will rely on the core advantages of Zhijing future in the development of computer vision and AI virtual digital human, take the joint venture as the main body to build a virtual digital human production platform, develop virtual anchor / idol, and realize effective coordination with the company’s core businesses such as e-games and brand marketing
Maintain the “overweight” rating. After the reorganization, the company continued to peel off the loss making businesses invested or participated in in in the early stage, with leisure E-sports and traffic park business as the core, and achieved multi-point flowering in just one year. Leisure E-sports products have been successful both at home and abroad, and also launched an exclusive “quasi medical beauty” explosive product relying on the advantages of traffic business. According to the industrial changes, the digital human business has been arranged in time, which will realize effective coordination with the main business. Give the company a profit forecast of 0.03/0.11/0.15 yuan from 2021 to 23, corresponding to 179 / 41 / 32 times PE, and maintain the “overweight” rating.
Risk warning: the risk that the business development is not as expected; Goodwill and other impairment risks.
