\u3000\u3000 Zhewen Interactive Group Co.Ltd(600986) (600986)
Leading enterprises in the digital marketing industry are committed to providing customers with integrated digital marketing solutions. The company was founded in 1993, formerly known as Keda shares. In 2015, the company quickly entered the digital marketing industry through the acquisition of subsidiaries such as bafos, perway and aichuang. At present, the company’s main business is digital marketing, with technology and data driven traffic operation, guided by the realization of customer marketing objectives in various industries, build a whole chain of digital marketing, and provide customers with the most commercially valuable integrated digital marketing solutions.
Focus on precision marketing, deeply cultivate the automotive field, and make steady efforts to innovate business. The company’s precision marketing business is deeply rooted in the field of effect marketing, and achieves the precise touch of target users for customers through data analysis. In terms of automobile marketing business, the company focuses on the fields of public relations and media purchase in the automobile industry, and provides customers in the automobile industry with quality and efficiency coordinated marketing services and industry solutions. At the same time, Zhewen Interactive Group Co.Ltd(600986) makes further layout and exploration around short video, games and other businesses to explore higher gross profit digital content services.
Actively layout the future industry of yuanuniverse and help the industry to continuously upgrade. At present, the company has built the prototype of Yuan universe ecology, and the “city of Zhejiang culture” is about to break the yuan and start. Virtual people such as Jun ruojin and LAN LAN will become the aborigines of the “city of Zhejiang culture” of the meta universe. The company continues to expand the content ecology of the meta universe, build meta universe infrastructure such as E-sports ecology, digital collection trading platform and virtual live broadcasting room, and intensively cultivate the field of intelligent AI to realize the construction of the digital future as soon as possible. In the fixed growth plan released in December, the company plans to invest 210 million yuan in AI intelligent marketing system, including two technology development sub directions: intelligent marketing platform development and virtual digital human.
From equity participation to holding, the state-owned assets mixed reform enables the development of the company. Hangzhou Zhewen Interactive Group Co.Ltd(600986) of Zhejiang Cultural Investment Holdings Co.Ltd(600715) gave full play to its advantages after taking shares, and enabled listed companies in multiple dimensions such as capital, license and business by introducing business resources, supporting credit lines, assisting in project implementation and establishing a new management team. We believe that after the fixed increase of state-owned assets in the future, the rigorous standardization of state-owned assets and the flexibility and efficiency of private enterprises will be more conducive to the optimization of corporate governance structure. It is suggested to pay attention to the evolution and breakthrough of the company’s subsequent business model.
The 21-year performance forecast and the financial report of the first three quarters reflect the company’s ability to obtain customers and its competitiveness as a core partner of head media. Specifically, the performance forecast disclosure predicts that the net profit attributable to the parent company in 2021 will be RMB 278-317 million, with a year-on-year increase of 195% – 236%; The net profit deducted from non return to parent was RMB 222-261 million, with a year-on-year increase of 209% – 264%. In the first three quarters of 2021, the company achieved a revenue of 10.78 billion yuan, a year-on-year increase of 56.5%, and the net profit attributable to the parent company was 210 million yuan, a year-on-year increase of 105.9%.
Investment suggestion: Zhewen Interactive Group Co.Ltd(600986) as a marketing company controlled by state-owned assets, it has leading advantages in business expansion ability, key customers, financing ability, license sector, etc. The company’s basic business is relatively stable and timely complies with the new marketing changes in the digital technology era. Based on its customer advantages and license advantages, the company actively arranges innovative businesses including yuanuniverse business, which is expected to open the company’s future performance and valuation space. Referring to Bluefocus Intelligent Communications Group Co.Ltd(300058) Three’S Company Media Group Co.Ltd(605168) , Beijing Jetsen Technology Co.Ltd(300182) and other comparable companies, considering the characteristics of the mixed reform of state-owned enterprises, the company will be given 30 times of Pe2 in 2022, The corresponding target share price is 9.0 yuan / share, and the “buy” rating is given for the first coverage.
Risk tip: the macroeconomic downturn affects the advertising of advertisers; Intensified market competition; The development of virtual business is not as expected; The approval of fixed increase is less than expected; Policy related risks; Recent stock price changes
