Mango Excellent Media Co.Ltd(300413) released the performance express in 2021, and the annual operating revenue in 2021 was 15.353 billion yuan, a year-on-year increase of 9.62%; The net profit attributable to shareholders of listed companies was 2.114 billion yuan, a year-on-year increase of 6.63%; After deducting non recurring profits and losses, the net profit was RMB 2.078 billion, a year-on-year increase of 12.53%. Main performance comments and Prospects
Concentrate resources to build mango TV main platform. Since Q2 of 2021, in order to focus more on the construction of mango TV main platform, the company has adjusted the structure and business of mango film and television, mango entertainment, Shanghai mango mutual entertainment and other subsidiaries, resulting in the slow progress of some content projects. After the adjustment, producers originally belonging to the above subsidiaries will join mango TV, expand the production capacity of self-made dramas and variety content, and realize the content with the video platform as the core. It is expected that the proportion of the company’s Internet video business revenue will further increase, and the proportion of new media interactive entertainment content production revenue will decline rapidly.
Under the pressure of the environment, the revenue growth of new media platform business is still good. In 2021, the overall supervision of the entertainment industry will become stricter, which will have a certain impact on the scheduling of variety content of mango tvq3-q4, and some head IP will be postponed to Q1 in 2022. Under the pressure of the external environment, mango TV, the company’s core business, achieved an operating revenue of 11.261 billion yuan by virtue of popular variety shows and word-of-mouth dramas of monsoon theater, and Internet video business (advertising + member + operator business), a year-on-year increase of 24.28%. Among them, advertising revenue increased by 32% year-on-year; The business of operators increased by 27% year-on-year; Member income increased by 13% year-on-year, and the number of effective members reached 50.4 million by the end of 2021, an increase of 40% year-on-year, reaching the growth target. The target number of mango TV members in 2022 is 65 million, with a year-on-year growth rate of about 30%.
Xiaomang is still in the investment period, and its revenue contribution is expected to increase rapidly in 2022. The content e-commerce platform “Xiaomang” was launched in early 2021. The company invested in variety sponsorship, theme parties and other resources to promote development. The annual peak of dau reached 1.26 million, reaching the previous goal. Xiaomang may start financing, and the strategic focus in 2022 will be to increase its contribution to the company’s revenue. Offline live entertainment business will continue to rely on content IP to extend the industrial chain and go deep into offline physical operation, script creation, DM training and other fields.
The online video competition pattern is loose, and the overseas market expansion is imminent. At present, the Internet video platform faces many challenges: 1) the incremental space of users has peaked, while the growth of member payment still takes time; 2) Advertising is affected by the macro environment and has great uncertainty; 3) Stricter content supervision, etc. The market began to pay more attention to the self-control ability and profit certainty of the platform Mango Excellent Media Co.Ltd(300413) has strong competitive advantages in self-made system, investment attraction strength, content policy grasp, channel cooperation and so on, and is expected to obtain more market share in the complex competitive environment. In addition to the mainland market, in 2022, the company will expand more to Hong Kong, Macao and overseas markets, including Southeast Asia and Africa.
Investment advice
We expect the growth rate of Mango Excellent Media Co.Ltd(300413) overall performance in 2022 to show a trend from low to high. The overall performance will gradually improve with the richer scheduling of monsoon theater dramas, the resumption of the online rhythm of variety content and the increase of Xiaomang’s income contribution. Meanwhile, although Mango Excellent Media Co.Ltd(300413) has a keen perception of the direction of content supervision and is less affected, investor sentiment may still fluctuate.
Major risks
The content performance is not as expected, and the growth of members is difficult to meet the standard; Macroeconomic downturn leads to lower than expected advertising; Policy supervision exceeds expectations; Investment in new businesses exceeded expectations, driving down profit margins; Overseas business is blocked.
