\u3000\u30 Jinzai Food Group Co.Ltd(003000) 58 Bluefocus Intelligent Communications Group Co.Ltd(300058) )
The seascape continues to stack multiple product matrices, which is expected to drive up the gross profit margin. In terms of advertising service, the company has authoritative optimization division and interactive service team, intelligent delivery system and third-party monitoring tools, strong material production ability and efficient overseas online marketing. From the demand side, the sea wave of the company’s advertisers’ industry drives the rapid expansion of advertising demand, and finally drives the growth of blue label business scale; At the same time, the company provides a wealth of sea marketing tools to meet the marketing needs of advertisers. The prosperity of sea going business will continue to be superimposed with a rich product matrix, which will drive the improvement of the company’s industrial chain bargaining power and the gross profit margin of sea going business.
Actively adapt to the changes of external marketing environment and continue to explore new business growth poles. As a head marketing company deeply engaged in the industry for more than 20 years, the company has a deep insight into the brand marketing needs and can constantly adapt to its needs and find new business growth poles. Among them, the short video business under DuoMeng Yidong is experiencing rapid development thanks to the industry boom and the accumulation of internal advantages. According to the disclosure of the company’s annual report, the short video business is expected to become the second 10 billion business line in 2022; The Internet industry has shifted from incremental to stock competition, which is expected to promote the growth of the company’s “wake-up business”; Blue label online focuses on the online marketing needs of small and medium-sized enterprises, and is expected to further expand its business space.
Yuancosmos has a clear business layout and is expected to grasp the growth space in the direction of virtual human. We believe that China has advantages in the realization scenarios such as virtual digital human, and Bluefocus Intelligent Communications Group Co.Ltd(300058) as a leading marketing group in China, has taken the first step in the business layout of meta universe. At present, three business layouts have been formed, including virtual digital human, virtual live studio and virtual space. Its core competitive advantages are mainly reflected in three aspects: 1) rich advertiser resources; 2) Relatively perfect product matrix; 3) With a deep insight into the marketing scene, we expect it will be possible to seize the general trend of the growth of industries such as virtual digital people, so as to generate a certain amount of incremental revenue, and is expected to further improve the market share.
Investment suggestion: as the leader of China’s marketing, the company has a relatively complete layout of the marketing industry chain, rich customer resources and deep insight into consumers. In the process of development, the company continues to launch new services by actively adapting to the changes of the marketing environment, so as to maintain a high growth of the company’s income. At the current time point, the company is still expected to maintain the high growth of overseas business. On the other hand, the first landing of marketing services related to metauniverse will also help the company seize the incremental space of the marketing industry and bring performance growth to the company. At the same time, it is expected to further improve the market share, so as to strengthen the advantage of the company as a marketing leader. We estimate that the net profit attributable to the parent company from 2021 to 2023 will be RMB 649 / 876 / 971 million, corresponding to EPS of RMB 0.26/0.35/0.39, giving the company 30 times PE in 2022, corresponding to 6-month target price of RMB 10.5, and “Buy-A” rating.
Risk warning: the risk of sea going business is increased due to the impact of the international situation; The business growth in the sea market was lower than expected; The progress of Yuanyu universe business segment was less than expected.
