Zhejiang Daily Digital Culture Group Co.Ltd(600633) (600633)
Become a leading digital culture and digital technology industry group in Zhejiang and China
Zhejiang Daily Digital Culture Group Co.Ltd(600633) as the first company in China to be listed as a whole in media operating assets, relying on the background of state-owned enterprise shareholders, the company has strong resource integration and operation ability. In the 10 years since its listing, the company has completed a comprehensive Internet transformation based on the capital market, It has developed from a listed company focusing on operating media assets to an industrial group focusing on Internet digital culture business. This year, the company issued a new strategic goal, committed to promoting the innovative development of digital culture industry, focusing on cultivating and expanding digital technology industry, and exploring and demonstrating the development of the industry. The company is mainly engaged in online game operation and value-added services, technical information services and commodity sales. Among them, online game operation business contributes the main performance (20-year revenue / profit accounts for 79.13% / 87.23% of the whole respectively), followed by technical information services (20-year revenue / profit accounts for 19.02% / 12.48% of the whole).
The digital culture business developed steadily and consolidated the company's basic market
Zhejiang Daily Digital Culture Group Co.Ltd(600633) in the field of digital culture, it mainly distributes three plates: digital entertainment, digital sports and art industry. 1) In the digital entertainment sector, the company acquired winger network in 2013. Through endogenous development and extension mergers and acquisitions, it has formed a "winger system" leisure game ecosystem with winger holding as the main body, firmly ranking the leading position in China's leisure game industry, with a net profit of 772 million yuan in 2020. At the same time, winger also actively expanded the overseas market and established bFun overseas brand in 2019, In the first year of formal operation in 2020, the company achieved a revenue of 55.22 million yuan, and has accumulated more than 100 million overseas users; 2) In the digital sports sector, the scale of China's E-sports market continues to expand. The company explores the new boundary of e-sports industry and extends the e-sports industry chain by investing in Lawton; 3) the art industry plate, the company creates art auction, art investment, art social networking platform, art education four major business segments, further explore the "Internet plus art" new business model.
Powering the data industry, the new engine of digital technology drives the growth of the company
In the field of digital technology, the company mainly arranges the data technology sector and constantly explores the application of digital technology in government affairs, medical treatment, financial media, culture and tourism, etc. In the data technology sector, the company has basically built 6700 sets of cabinets in Hangzhou No. 1 data center, with a net profit of 46.86 million yuan in 20 years. In addition, Hangzhou No. 2 data center, Beijing Yiyuan data center and Hangzhou Qiantang cloud data center are under construction. It is expected that the number of cabinets in Fuchun cloud data center will gradually increase according to the market demand in the next three years, Profitability will also reach a new level. Other businesses of digital technology, i.e. digitization, are deeply integrated with multi scenario applications such as government affairs, medical treatment, culture and tourism. With the continuous cultivation and growth of business, the value contribution to the company will be gradually reflected. In addition, the company plans to split financial media technology and plan to be listed independently, which will bring incremental valuation to the company at that time.
Investment suggestion: we predict that the company's revenue from 2021 to 2023 will be RMB 3.501/40.57/4.731 billion respectively, with a year-on-year increase of - 1.07% / 15.88% / 16.62%, and the net profit from 2021 to 2023 will be RMB 574/654/722 million respectively, with a year-on-year increase of 12.15% / 14.02% / 10.40%. According to sotp valuation method, considering that the valuation contribution of science and technology is gradually prominent, we expect the market value to be RMB 15.644 billion in 2022, corresponding to the share price of RMB 12.02/share in 2022, and give a "buy" rating for the first time.
Risk tip: policy supervision is uncertain, multi field layout management is more difficult, the project progress is less than expected, the performance of M & A companies is less than expected, and the completion of equity incentive performance is more / less than expected
