Zhejiang Huace Film And Tv Co.Ltd(300133) (300133)
Continue to supply upward spiritual food, and continue to fulfill the mission of content vanguard under the new order
As a leading enterprise of Chinese language film and television group with Chinese cultural film and television content creation as the core, the output and broadcasting volume of TV dramas rank first, and the episodes and films are driven by two wheels. New order end content enterprises continue to consolidate their main business; For example, in the copyright sector, supported by the production of film and television dramas in recent 30 years and the external permanent copyright procurement and operation of Jiayun Society for more than 10 years, the company has become the largest enterprise in China's permanent copyright library, Relying on nearly 30000 episodes of copyright resources (more than 60% of which are permanent copyright), the company's genuine film and television material library (Huace new vision) has been launched, and it is expected to use new technologies to enable the copyright industry to upgrade.
Huace adopts the strategy of "running fast in small steps" to build an ecological and new business layout, realizes the deep cultivation of IP and the whole network penetration of content through content driven, and strives to become a supplier of spiritual food for new generation users. For example, the company's main investment and control film assassinating novelist shot with dynamic virtualization in 2021 accounts for 35% of the audience aged 20 to 24, The company practices dialogue with different generations of users with high-quality content, and makes use of new technologies such as arvr to empower its main business, so as to give play to the leading effect of the vanguard under the new order of cultural power.
The risk is released in 2019. In 2020, the impact of the epidemic is weak. The revenue increased by 56.7% in the first three quarters of 2021, and the growth rate of the main business in 2022 is expected to continue
From 2018 to 2020, the growth rate of the company's operating revenue was 10.5%, - 54.6% and 41.9% respectively, and the growth rate of net profit was - 60.7%, - 689.96% and 126.69%. From 2018 to 2019, the company's internal optimization business released risks. In 2020, the impact of the epidemic on its revenue and profit was weak. In the first three quarters of 2021, the growth rate of the company's revenue and parent company profit were 56.74% and 59.74% respectively, realizing the growth before the epidemic, The main business is expected to continue to increase in 2022.
Hualiu goes to sea to help China's capacity industry upgrade
The company aims to become a "global comprehensive media group with content as the core", adhering to the three strategies of high-quality content, industrial platform and Hualiu going to sea. In international business, one belt, one road, is also being gradually developed. The IP has been increasing its radiation intensity in Southeast Asia and the other countries along the way. The partners of Korea, Thailand and other countries are making the two creation of IP, the Chinese drama series. We are optimistic that the company, as the leading company in the film and television content industry, will lead the company to take the lead in completing the transformation from workshop production mode to industrial production mode, and start a new journey of "high-quality content producers and industry platform enablers", comply with the tide of Hualiu going to sea and lead the upgrading of China's content industry.
Profit forecast
It is predicted that the company's revenue from 2021 to 2023 will be RMB 506 million, RMB 6322 million and RMB 7265 million respectively, the profit attributable to the parent company will be RMB 480 million, RMB 595 million and RMB 665 million respectively, the EPS will be RMB 0.25, 0.31 and 0.35 respectively, and the current share price corresponding to PE will be 25, 20 and 18 times respectively. The repurchase proposal will be issued in August 2021 to implement the equity incentive plan or employee stock ownership plan, As of November 30, 5337700 shares had been intensively repurchased (the repurchase price was 5.56 yuan / share to 5.68 yuan / share); on December 24, the company issued a pre disclosure of reduction of holdings, which was mainly used to reduce the development of film and television vocational education business responsible for and used for the development of controlling shareholders. The short-term impact of the reduction event did not change. The company was basically oriented towards good and subsequent new business development, and then gave a "recommended" investment rating.
Risk statement
Risk of slowdown in the growth of film and TV drama industry; The risk of piracy; Risk of work content review; Risks of policy and regulatory environment; Risk of performance fluctuation caused by delayed release of films and other projects; There are intellectual property risks such as stolen version and broadcasting of original works; Risk of public health emergencies; Lower than expected risk of repurchase; Risks of macroeconomic fluctuations, etc.
