Beijing Jetsen Technology Co.Ltd(300182) (300182)
The copyright operation moat has become, the business model has been upgraded and the industry ecology has been reorganized
The company has over 50000 hours of massive content copyright library, which is firmly the leader in the film and television copyright industry. With the accumulation of film library year by year, the business model is gradually upgraded, and the growth space can be expected. In recent years, the company has opened a joint operation and cooperation mode with Huawei, Xiaomi, mobile Migu and other customers to enter the TOC content operation business. At the same time, it has taken the lead in investing in joint multi video platforms to explore the distribution and distribution mode of film digital cinema, leading the reform of the film industry; The company’s customer dimension continues to expand, and terminal hardware manufacturers such as Xiaomi and Huawei turn to self built content platforms. In the future, the growth of the market scale of ultra-high definition TV, new energy vehicle intelligent cockpit and VR equipment will further increase the demand for copyright.
Advance the layout of the meta universe, and the audio and video business has entered a new stage
The company has a deep accumulation of audio and video technology research and development. Shiyou technology, a subsidiary, has been deeply engaged in VR \ ar track for many years, and continues to explore the development possibility of meta universe audio and video technology. The traditional audio and video technology cycle is gradually coming to an end. With the application of 4K / 8K ultra-high definition, VR, AR, XR and other related high-tech video technologies, the company has advanced the layout of virtual technology and explored the subdivided businesses such as virtual copyright operation and virtual idol; Ultra high definition video is clearly supported by the 14th five year plan, and the domestic 3D sound standard developed by the company has entered the final approval link.
Policies and industries focus on multiple benefits, and war investment and fixed increase and equity incentive continue to be promoted
Policy documents such as the outline of strengthening the country with intellectual property rights, the 14th five year plan for the film industry and the detailed rules for the review of short video content are significantly conducive to the long-term development of the company’s film and television copyright operation business. The underlying technology of the meta universe continues to break through, and the virtual digital man and audio and video technology are highly prosperous. The company introduced Xiaomi war investment in 2020, strengthened cooperation with channel hardware manufacturers, continued to promote the fixed increase of war investment, optimized the company’s equity structure, and issued an equity incentive plan in the third quarter of 2021. The incentive objects are the company’s executives and core business backbones, providing guarantee for the sustainable and healthy development of the company’s main business.
Investment suggestion: maintain the “buy” rating
We maintain the previous profit forecast. It is estimated that the company will achieve revenue of RMB 3.620/43.60/5.264 billion from 2021 to 2023, and net profit attributable to parent company of RMB 557/7.17/921 million from 2021 to 2023, corresponding to EPS of RMB 0.22/0.28/0.36 respectively, corresponding to closing price of RMB 6.21/share on December 22, 2021, and PE of 29, 22 and 17 times respectively. At present, the company has high barriers to film and television copyright business, and continues to explore the business form of meta universe. The completion of asset divestiture means that the company will further focus on the dominant main business, the negative impact of other businesses on the company’s performance has been basically eliminated, and the overall valuation level of the company is expected to be further improved to maintain the “buy” rating.
Risk statement
The introduction of strategic investment shareholders is less than expected; The film and television copyright business may be regulated; The release time of China’s three-dimensional sound standard is uncertain.
