\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 986 Zhewen Interactive Group Co.Ltd(600986) )
Event: the company disclosed its annual report on March 31, 2022, and achieved a revenue of 14.294 billion yuan in 2021, a year-on-year increase of 54.35%; The net profit attributable to the parent company was 294 million yuan, a year-on-year increase of 211.98%; The net profit deducted from non return to parent was 246 million yuan, a year-on-year increase of 242.82%.
The base sector business has grown rapidly, and the effect advertising has increased both revenue and profit. In 2021, the brand marketing sector realized a net profit attributable to the parent company of 190 million yuan, a year-on-year increase of 127%. Among them, the automobile brand marketing segment has achieved the first market share in the industry. In 2021, eight of the top ten automobile sales brands were contracted customers of the company. Main business: in 2021, the effect marketing segment achieved an operating revenue of 11.1 billion yuan, a year-on-year increase of 94%; The net profit attributable to the parent company was 120 million yuan, a year-on-year increase of 238%. In 2021, the total consumption scale of the effect marketing sector doubled year-on-year, with 24 customers exceeding 100 million in the whole year.
We will invest 200 million yuan in digital ecological innovation business to promote virtual and anthropomorphic development. In 2021, the company’s innovative business made a good start, and business tracks such as virtual digital assets, E-sports event prediction and digital collection layout showed a good development trend. Specifically, 1) in the field of virtual human, the company successfully launched two virtual digital human images: Guofeng virtual IP “Jun ruojin” and z-generation virtual IP “Lan Lan”. Relying on the customer relationship precipitated by the company, the virtual human quickly realized monetization and successively provided technical capability output for Audi and other head car brands. 2) In the e-sports event sector, the company is committed to building an E-sports fan community and providing users with game methods including event data analysis, derivative points consumption and so on. 3) In terms of digital collections, Mita platform has been tested online in March. At present, four rounds of digital collections have been sold, with a total of 14000 copies.
From equity participation to holding, state-owned shareholders are fully empowered. At the governance level, in 2021, Zhejiang cultural investment obtained the control of the company, and the actual controller of the company was changed to the Department of finance of Zhejiang Province. On December 29, 2021, the company disclosed the fixed increase plan and planned to issue no more than 165 million shares to Bowen investment, a wholly-owned subsidiary of state-owned shareholder Zhejiang cultural investment, at the price of RMB 4.85 per share. After the fixed increase is completed, the shareholding proportion of Zhejiang cultural investment will be further increased. The company is favored by state-owned shareholders in terms of policy guidance, resource introduction and risk control. We believe that the rigorous standardization of state-owned assets and the flexibility and efficiency of private enterprises will be more conducive to the optimization of corporate governance structure. We suggest paying attention to the evolution and breakthrough of the company’s subsequent business model.
Investment suggestion: the company’s basic business is relatively stable, and timely complies with the new changes in marketing in the digital technology era. Based on its customer advantages and shareholder advantages, the company actively enters the innovative business including yuancosmic business. Considering the annual report of 2021, we fine tuned the company’s performance and expected the net profit of 22-24 years to be RMB 394 / 475 / 519 million, with a year-on-year increase of 34% / 21% / 9%, maintaining the “buy” rating.
Risk tip: the macroeconomic downturn affects the advertising of advertisers; Intensified market competition; The development of new businesses such as virtual digital human is less than expected; The approval of fixed increase is less than expected; Policy related risks
