\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 88 Citic Press Corporation(300788) )
Key investment points
Performance summary: Citic Press Corporation(300788) released the annual report for 2021. According to the announcement contents: 1) the company achieved revenue of 1.92 billion yuan in 2021, with a year-on-year increase of 1.6%; The net profit attributable to the parent company was 240 million yuan, a year-on-year increase of - 14.4%; The net profit deducted from non parent company was 210 million yuan, with a year-on-year increase of - 17%.
The revenue of publishing business is flat year-on-year, and the market position is strong. In 2021, the company still ranked first in the overall book market. The book publishing and distribution business achieved a revenue of 1.46 billion yuan, a slight year-on-year decrease of 0.5%, and the gross profit margin was 32%, a year-on-year decrease of 2.6 percentage points. In the subdivided fields, the market share of economic and management books continues to lead the market; Popular science keeps the first place in the market; Biography rose to second place; Compared with last year, the art category increased by six places and ranked sixth. In the future, the company will continue to increase the investment in copyright and content R & D, and expand the scale and quality of high-quality content reserves. The situation that the strong is always strong is expected to be maintained.
CITIC Bookstore turned losses into profits. In 2021, under the background of repeated epidemic, the company's bookstore business realized an operating revenue of 450 million yuan, up 3.4% year-on-year, and the profit caliber has achieved profit. By category, the scale of CITIC Bookstore airport store ranks first, with an annual passenger flow of 446 million; Business stores have established mature models and competitive advantages. At the same time, the company is committed to carrying out diversified operation. For example, in cooperation with Taiwu bookstore, Yuyu culture and life company provides comprehensive supply chain services for all Taiwu bookstores in China, which has reached the flexible supply chain standard recognized by Japan's Taiwu bookstore and Japanese vendor group. The richness of products and store management ability of the company's offline stores have been improved.
The Internet team joined the construction of China Taiwan system. The company established a professional Internet technology and operation team and increased investment in product digitization and intelligent operation. In 2021, the company invested 17.36 million in R & D, nearly doubled the R & D rate year-on-year, and the number of R & D personnel increased by 40.7% to 38 year-on-year. A large amount of R & D investment has effectively improved the company's operation: 1) upgrading software: upgrading CITIC Bookstore applet and CITIC academy app, opening up Wuxi Online Offline Communication Information Technology Co.Ltd(300959) membership system and implementing full link integrated operation. The daily revenue of CITIC academy app can reach 100000. 2) Online audio reading: CITIC college plans to develop columns such as big coffee reading, video reading and live reading club to enhance user stickiness, with nearly one million new users each year. In 2021, the company's audio product revenue increased by 29% year-on-year, and the number of podcast subscriptions of "jumping Island FM" exceeded 100000. 3) Channel operation: build an audio and video operation matrix covering station B, xiaohongshu, Zhihu and shuaikuai platforms, cultivate the head knowledge-based MCN and professional live broadcasting team, and improve the sales capacity. In 2021, the MCN matrix covered 39.33 million fans and 2.7 billion content videos.
Profit forecast and investment suggestions. It is estimated that the EPS of Citic Press Corporation(300788) 2022-2024 will be 1.44 yuan, 1.62 yuan and 1.81 yuan respectively, corresponding to 17 times, 15 times and 14 times of PE; Considering that the company's bookstore business has been profitable, the company has a large reserve of education and training books, and the development momentum of online reading is strong, the investment rating of "buy" of the company is maintained.
Risk warning. There are risks in national policies, unexpected risks in epidemic development, and the effect of the company's book market is less than expected.
