\u3000\u3000 Shanghai Lisheng Racing Co.Ltd(002858) (002858)
[matters]
On February 12, 2022, the company signed the strategic cooperation framework agreement with China Sports Newspaper Corporation Limited (hereinafter referred to as “the corporation”) and China Sports Federation (Beijing) Investment Co., Ltd. (hereinafter referred to as “China Sports Federation”) in Beijing. In order to further implement the “healthy China 2030” planning outline of the CPC Central Committee and the State Council and the outline for building a sports power of the State Council, the company, the head office and the China Sports Federation will carry out strategic cooperation in all fields such as sports bank, digital twin, sports industry, sports forum, event marketing, workplace fitness, combination of sports and medicine, and combination of sports and education.
[comment]
Join forces with the head office and China Sports Federation to strengthen the field of national fitness. China Sports Newspaper Corporation is a public institution directly under the State Sports Administration. Its subordinate media include China sports daily and China sports lottery. It is responsible for comprehensively and accurately publicizing the sports work policy and publicizing the “national fitness plan” and “Olympic glory plan”. China Sports Federation is a wholly-owned subsidiary of the general society, a first-class subsidiary of the central cultural enterprise, and a backbone enterprise in the field of national fitness. The company is a strategic partner in the field of national fitness with the head office, and a strategic partner in the field of national workshop fitness, national fitness events, sports and medical integration and sports science popularization with China sports. The three parties will introduce the “sports bank” to cooperate in relevant sports events and carry out comprehensive strategic cooperation in areas such as comprehensive fitness.
Sports bank brings a new model of national fitness, which can be commercialized in the future. In the sports industry, especially in the field of sports and fitness, user growth and commercialization are important pain points. In terms of user growth, the company does not adopt the buying mode, but the “2g2c” customer acquisition mode avoids large-scale investment and covers the whole age group from the youth and the middle-aged and the elderly by surrounding the city in the “countryside”. In terms of commercialization, for g-end and b-end, provide sports big data, event organization, AI sports courses, intelligent hardware and other products and services for governments, schools and other institutions; For the C-end, incentive and realization are realized through point exchange, which is essentially an e-commerce diversion business based on CPS.
The recovery after the epidemic is superimposed with the new business of national fitness, with high certainty of future growth. First, the recovery after the epidemic. In 2021, the traditional business reached the level of 50-60% before the epidemic. The epidemic has a great impact on audience participation. In 2022, the traditional business such as event operation will gradually recover. Second, the commercialization of comprehensive fitness businesses such as “sports bank” has accelerated.
[investment advice]
We are optimistic about the recovery of the company’s traditional racing business and the rapid growth of the new business of “sports bank”. Based on the progress of traditional racing business and raised investment business, we expect the company’s revenue to be 275 / 421 / 615 million from 2021 to 2023, the net profit attributable to the parent company to be 05 / 0.33/0.65 million, and the earnings per share to be 0.03/0.20/0.41 yuan from 2021 to 2023 respectively. PE corresponds to 466 / 75 / 37 times. We are cautious and optimistic and give a “overweight” rating.
[risk tips]
Traditional business recovery is less than expected
New business expansion is less than expected
Lifting of restricted shares
