Zhejiang Daily Digital Culture Group Co.Ltd(600633) (600633)
Recommendation logic: 1) digital culture sector, leisure and entertainment sector led by winger, ranks the top in China, and actively goes to sea to create a new growth pole; 2) In the digital technology sector, the construction of Fuchun cloud data center continues to advance, and the existing 6700 groups of cabinets are expected to increase steadily in the next three years, with performance thickening expectations; 3) The company actively carries out meta universe layout, such as participating in the construction of digital government affairs such as "urban brain" and "digital Zhejiang" and enabling the art industry with blockchain, which is expected to have a positive impact on the valuation.
Build a digital government system to immerse government affairs into digitization. The company has deeply participated in the construction of digital government and smart city in the province, such as "urban brain", "digital Zhejiang" and other smart cities and digital government construction, and deepened the construction and operation of relevant R & D, operation and application scenarios of urban brain in Hangzhou, Wenzhou, Taizhou, Yiwu, Anji and other cities; At the same time, we will fully participate in the construction of key tasks such as the overall intelligent governance and comprehensive application of Party and government organs, the comprehensive application of digital government and the comprehensive application of digital society. This business of the company is a typical example of digitizing the offline government system, and it is also a way to make life more digital immersion.
The art industry endows artwork with digital ID cards, opening up the imagination space of blockchain business. Under the company's art industry, there are many platforms for art merging media and art auctions. Through these platforms, the artists integrate social interaction, art business, art education, and integrate the art categories and products through the Internet plus short video mode to help the convergence and exchange of art works. Such platforms can provide digital ID cards for works of art, solve the difficulties of digital art anti-counterfeiting, and create an exclusive art sales chain, industrial chain and blockchain for artists.
Digital technology and digital culture work together to establish the company's leading edge in the digital industry. In terms of digital entertainment, Zhejiang Daily Digital Culture Group Co.Ltd(600633) has built up the digital entertainment industry circle with winger holding as the core, and continuously nurture and improve the layout of digital sports. Based on Zhejiang Art Industry Group, we build "Internet plus art" development platform, improve the digital culture ecology of the company, and support the company's performance stability and growth. In terms of digital technology, Zhejiang Daily Digital Culture Group Co.Ltd(600633) has gradually built a digital technology industry segment including data technology, digital intelligent governance, financial media technology, digital culture and tourism and other subdivided fields to improve the company's sustainable development ability.
Profit forecast and investment suggestions. It is estimated that the EPS in 2021-23 will be 0.46 yuan, 0.56 yuan and 0.60 yuan respectively, and the corresponding PE will be 19 times, 15 times and 14 times respectively. The company has fully completed the transformation from traditional media to Internet company, and will focus on the layout of digital culture and digital technology industry in the next stage. The company's Internet positioning switching and meta universe business layout may bring a certain valuation premium to the company. To sum up, we expect the market value of the company to be RMB 14.588 billion in 2022, corresponding to the target price of RMB 11.53, and give a "buy" rating for the first time.
Risk tip: risk of policy change; The risk of intensified market competition; There is a risk that the water flow of Xinyou is less than expected.
