Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) (603466)
Key investment points
The diversification strategy has been continuously promoted and the profit has increased steadily, laying the foundation for yuanuniverse investment. Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) is a leading enterprise in China’s digital display industry and is committed to becoming a leading digital experience service provider in China. It continues to promote the diversification strategy, and its main business types are the integrated construction of urban digital experience space, cultural and brand digital experience space, and digital products and services. From 2013 to 2020, the annualized compound growth rates of the company’s operating revenue and net profit attributable to the parent company reached 21% and 49% respectively. By the end of the third quarter of 2021, the company’s nine month revenue had reached 2.247 billion yuan, a year-on-year increase of 36.2%; The net profit attributable to the parent company reached 391 million yuan, a year-on-year increase of 42.3%. Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) revenue and profit have grown steadily for a long time, laying a solid foundation for its investment in yuanuniverse.
The accumulation of VR / AR technology application experience provides interactive support for Wuxi Online Offline Communication Information Technology Co.Ltd(300959) . Metauniverse is the interweaving of virtual and reality. Immersion is the basic experience problem that “metauniverse” must solve. Its implementation depends on the application of VR / AR technology. With the development of VR / AR technology and application, the linkage between virtual and real will enable more offline scenes and open the boundary between the virtual world and the real world. Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) the 5g + VR track in the card position started the layout of VR earlier, and also took the lead in realizing the large-scale commercial application of VR, AR and other technologies in the industry. The application of VR / AR enables offline pavilions in terms of display effect, display content and interactive experience. At the same time, as the company enters the meta universe track, the application of VR / AR technology also provides interactive technical support for the combination of online platform and offline digital experience space, creating a new exhibition experience.
Explore the meta universe Game track and break the Wuxi Online Offline Communication Information Technology Co.Ltd(300959) dimensional wall. Games are generally regarded as the initial entrance to the meta universe. Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) through independent research and development and cooperation with external game companies, it carries out the development of meta universe games. Its cooperation with spirit environment mutual entertainment marks the exploration of meta universe Game track. The two will cooperate with an online community platform to link with offline pavilions. On the one hand, Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) has accumulated strong scene building ability and rich resources, which will give online creative design experience and interactive experience. On the other hand, online play will feed the offline hall. Through the construction of community platform, online games and interactive entertainment experience will guide more young people to museums, science and technology museums and other cultural venues for cultural consumption, bringing new growth space for their offline exhibition business.
Profit forecast and investment rating: considering that the company’s technological innovation and meta universe layout will open the imagination space of the exhibition track in the future, and the company, as an industry leader, has formed high technical and brand barriers. We adjusted the previous profit forecast, adjusted the net profit attributable to the parent company from RMB 484 / 592 / 735 million to RMB 489 / 597 / 695 million from 2021 to 2023, and increased EPS from RMB 1.15/1.40/1.74 to RMB 1.16/1.41/1.65, corresponding to the current share price PE of 23 / 19 / 16x respectively. The company provides new growth space for the leading digital display industry and yuanuniverse business, maintaining the “buy” rating.
Risk tips: the risk of recovery of accounts receivable, the risk of intensified industry competition, and the return of yuancosmic business is less than expected
