Bluefocus Intelligent Communications Group Co.Ltd(300058) (300058)
Key investment points
The cash reserve has increased significantly, and the strategic layout of yuanuniverse is abundant. The international business of Bluefocus Intelligent Communications Group Co.Ltd(300058) introduced strategic investors and completed the delivery in September. The subsequent income will not be included in the statement scope of Bluefocus Intelligent Communications Group Co.Ltd(300058) and will only be included in the investment income according to the equity ratio of 34.51%. Therefore, the company's revenue in 2021q3 is affected by the divestiture of international business. In 2021q3, the company achieved an operating revenue of 9.37 billion yuan, a year-on-year decrease of 18.4%. After the transaction, the company's monetary capital increased by 87.6% year-on-year to 3.57 billion yuan. Sufficient cash reserves will lay a solid foundation for the company's yuanuniverse and "business + sales" strategic layout.
Explore virtual services in an all-round way and accelerate the layout of meta universe. The development of yuancosmos relies on blockchain, 5g and other underlying technologies. The application scenarios include social networking, games, advertising and marketing, which will become the largest application scenario of media. With the establishment of the meta universe, the brand is facing a new marketing ecology. Its demand for virtual people and its application demand for virtual people in brand publicity, live broadcasting and goods came into being. Bluefocus Intelligent Communications Group Co.Ltd(300058) open the innovation of metauniverse and virtual human in the marketing field and accelerate the layout of metauniverse. Through the exploration of meta universe business, Bluefocus Intelligent Communications Group Co.Ltd(300058) layout virtual human IP and technology, XR technology and virtual space, explore the application of virtual digital human, virtual space and virtual live broadcasting in marketing scenarios, and then build the company's own IP, technology and content core capabilities.
The meta universe layout will enable "marketing + marketing" services, which is expected to provide new growth space. 1) Bluefocus Intelligent Communications Group Co.Ltd(300058) enable the virtual IP image to create an all-channel cross-border communication ecology; At the same time, the company actively promotes cooperation, creates virtual human with its own intellectual property rights, mass launches more virtual human images, turns one-time marketing means into enterprise brand digital assets, and helps precipitate brand value. 2) The virtual anchor is tailored according to the brand image to avoid the risks of job hopping and image collapse of the real anchor. The virtual live broadcast provides more personalized services and builds a bridge for the brand and consumers. 3) Bluefocus Intelligent Communications Group Co.Ltd(300058) emphasizes the transformation from integrating channels and content forms of different media to deeply helping customers sell products at the transaction end. The virtual live broadcasting room enables the e-commerce trading ground, expands the new play method of "business + sales" in the e-commerce context, provides customers with "business + sales" full link promotion services, and more directly helps enterprises achieve success.
Profit forecast and investment rating: the company divested its overseas business this year, and its revenue will be greatly affected in 2021. However, the company's overseas advertising business will maintain a high growth rate in the next two years. Therefore, we adjusted our previous profit forecast and adjusted the company's revenue forecast from RMB 43.984 billion, 48.897 billion and 55.7 billion to RMB 41.718 billion, 58.717 billion and 66.646 billion in 2021-2023, However, due to the company's increased investment in the layout of metauniverse, short video and SaaS services, the EPS forecast is reduced from 0.28, 0.36 and 0.44 to 0.26, 0.32 and 0.38 yuan, corresponding to 37.66/30.30/25.94 times of PE respectively. The company is a leader in the field of advertising and marketing, with obvious business advantages and steady performance growth. It has made great efforts to layout the meta universe business and provide new growth space. The valuation still has room to improve in the future. We maintain the "buy" rating of the company.
Risk warning: increased market competition risk, brain drain risk, goodwill impairment risk, meta universe return is less than expected
