Dalian Zeus Entertainment Co.Ltd(002354) (002354)
event:
On November 29, Dalian Zeus Entertainment Co.Ltd(002354) (002354. SZ) announced that the company planned to change the company name from ” Dalian Zeus Entertainment Co.Ltd(002354) ” to “Tianyu digital technology (Dalian) Group Co., Ltd.” and the securities abbreviation from ” Dalian Zeus Entertainment Co.Ltd(002354) ” to “Tianyu digital section”.
comment:
The renaming conforms to the development trend of the company’s commitment to diversified transformation in the field of digital economy and highlights the company’s focus on the digital economy strategy
At present, the company has more than 80 controlling and participating companies, which are distributed in game R & D and distribution, e-sports, mobile application distribution, precision marketing, digital traffic and other fields. Its development idea is to build a highly competitive ecosystem in the field of digital economy around the two wheel drive strategy of “E-sports drives games and data traffic drives the real economy”. In the first three quarters, the company realized an operating revenue of RMB 1.168 billion, a year-on-year increase of 55.31%, and a net profit attributable to the parent company of RMB 26.6351 million, a year-on-year increase of 113.50%, mainly due to the growth of data flow business income and the continuous improvement of business trend.
Cooperate with the trade union to broaden the channels for customers, and the “chess and card + E-sports” competition continues to be hot
In the first half of 2021, the company reached cooperation with a number of game associations, carried out cooperative operation for chess and card products, and opened new customer acquisition channel resources by holding rich de Pu online competitions. In the “wcaa Season 2 Texas poker masters” recently held by the company in cooperation with wcaa (World E-sports competition) During the competition, more than 30000 + people participated in the competition. Since the start of the competition, the registration rate of users has soared: from 88.74% at the beginning to about 94% in the later period, with a peak of 98.39%; The peak heat of the live broadcast room of the finals exceeded the 1 million mark for the first time, and occupied the tiger tooth home page for 5 hours in prime time during the live broadcast, with high heat in the live broadcast room.
“Leisure games + E-sports” broaden the realization path, and the national leisure E-sports platform is expected to be officially launched in the near future
The company is building the first national leisure E-sports platform – “PK. Now!” in China, Enable leisure game track with E-sports to create a new profit model for leisure game developers. The company expects to use E-sports to enable leisure games, is committed to solving the three major problems faced by leisure and super leisure games, such as poor profitability, high purchase cost and serious channel exploitation, activate the market potential and momentum of leisure games, and is gathering a number of Chinese leisure game developers to carry out online competition cooperation with third-party event brands through high frequency Low cost E-sports events broaden the realization path of leisure games. At present, the company has officially announced the “houlang” CP support plan, which aims to pass PK NOW! The platform is professionally empowered, integrates various resources, widely explores the potential CP team, fully incubates products, and comprehensively enables the development of leisure game CP in five aspects: R & D resources, operation resources, E-sports support, going to sea support and financial support. In addition, the company has launched in-depth cooperation with Beijing big data research institute. It is expected to focus on targeting accurate people, mining popular games, optimizing competitive ecology, improving the event system, looking for commercial linkage explosion points and continuously improve PK NOW! The core competitiveness and profitability of the platform. At present, the product is still in the testing stage and is expected to be officially launched in the near future.
Take the data flow ecological park as the carrier to create the advantages of full scene data flow operation service
Since it was officially put into operation in the first half of the year, Shanxi data flow ecological park has attracted more than 100 enterprises in various segments of the Internet digital field covering digital logistics, game applications, digital marketing, online Red studio, MCN supply chain and so on, with a total investment of nearly 1 billion yuan. Kwai Kwai, a tiktok operator, has been awarded the huge number of engines, the core agents of fast acting, the magnetic license of Jinniu, and the qualification of the huge volume of tiktok, the power provider of the marketing service, relying on the head flow platform such as jitter, fast hand, etc., to provide customers with comprehensive precision digital marketing services, and has accumulated more than 6000 customers. A total of 108800 pieces of creative materials have been produced, 843 million hits of creative materials have been made, and the total number of traffic has exceeded 22.4 billion. In the first half of the year, the company has provided a total of 90 million yuan credit line support to today’s headlines and fast advertising business for a wholly owned subsidiary of Shanxi. It enables Shanxi to get a payment account in a certain amount and time limit without any full prepayment, which greatly improves the efficiency of the use of Shanxi Peng Kwai. It has increased the company’s digital marketing business scale in the field of short video. In addition, in November 9th, the company announced that the Board agreed that the company offered irrevocable joint liability guarantee for Shanxi Peng Kwai to today’s headlines and quick hands. The maximum amount guaranteed by the guaranty contract is 130 million yuan, which is expected to further expand the scale effect of the company’s data traffic business and enhance the core competitiveness of the company.
Stop the loss on the sale of loss making assets in time to further optimize and integrate the group’s business
At present, the company has received a performance bond of US $7.7519 million, equivalent to about 50 million yuan, for the equity transfer of the holding subsidiary fantasy Yueyou. The industrial and commercial change registration of the equity transfer of the holding subsidiary has been completed, and fantasy Yueyou has received the changed business license. According to the current progress, it is expected that Dalian Zeus Entertainment Co.Ltd(002354) will recognize a revenue of 130 million yuan in the fourth quarter, which will provide sufficient capital and resource support for the development of the company’s new business; At the same time, we expect that the company’s asset structure, business layout and operational risks will be further optimized.
Profit forecast and investment rating
At present, the layout of e-games and data traffic of the company has entered the release period of sustainable development, and the effect of mutual promotion and coordinated development of game and traffic business has gradually appeared. We expect the overall profitability of the company to continue to improve in 2022. To sum up, we give the company an investment rating of “overweight” and keep the profit forecast unchanged. It is expected that the EPS in 2021-23 will be 0.16, 0.23 and 0.3 yuan / share respectively.
Risk statement
The company’s business development does not meet expectations, the product operation does not meet expectations, and the game industry policy risk; Data flow, Eco Park policy and operation risk, etc
