\u3000\u3 Shengda Resources Co.Ltd(000603) 466 Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) )
Core view
The company is the leader of digital display. The company is committed to becoming a leading digital experience service provider in China. Its core businesses include urban digital experience space, cultural and brand digital experience space, digital products and services. The controlling shareholder and actual controller of the company are Li Hui and Xin haoying, whose shares account for 58.83% of the circulating shares. The company's current performance is mainly driven by orders. Government orders were the core source of revenue 21 years ago. The proportion of 21h1 culture and brand digital experience space increased from 39% to 61%.
Policy support, digital technology and cultural needs promote the vigorous development of the company's industry. Under the competition pattern of one super and many strong companies, the company is expected to continue to expand its market share and establish the position of industry leading platform company. The main business is stable and the performance continues to grow. In 2021, the company achieved a revenue of 2.94 billion, an increase of 30.31% and a net profit attributable to the parent company of 454 million, an increase of 32.47%. Among them, 21q4 achieved a revenue of 693 million, an increase of 14.25%, and 21q4 achieved a net profit attributable to the parent company of 63 million, a decrease of 7.31%. The net cash flow from the company's operating activities was 325 million yuan, an increase of 48.37% and the weighted average roe was 21.21%, an increase of 2.68 PCT. The company's performance is good, its main business continues to grow steadily, actively promotes diversification, continues to control costs and fine management.
There are abundant orders on hand, and the proportion of businesses outside the g-end is gradually increasing. As of December 31, 2021, the company's orders on hand were about 5.462 billion yuan, an increase of about 1.39% over the end of last year. In 2021h1, the proportion of the company's cultural and brand digital experience space business increased significantly. The company signed new orders of 1.598 billion yuan, an increase of 7.39%, including 933 million yuan of cultural and brand digital experience space, an increase of 12.70%, and 47.5 million yuan of digital products and services, a significant increase over the same period of last year.
We will continue to layout yuancosmos and NFT related businesses and actively grasp the new trend of the industry. 1) The company has reached strategic cooperation with Suning cinema to explore a new pan entertainment business model of "meta universe + cinema + script killing"; 2) The company has reached a co construction and cooperation with Baidu xirang to expand the development of 3D virtual architecture; 3) ShanMeng teamed up Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) to launch China's first NFT expression pack digital collection; 4) Xingtubit, the NFT distribution technology service company, has received an investment of Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) ten million yuan, and the two sides are expected to cooperate in the field of NFT.
Risk warning: digital technology R & D risk; The progress of meta universe landing is slow; The digital display industry is highly competitive.
Investment suggestion: as the leader of design exhibition, the company benefits from the broad market prospect of digital space. On the one hand, the g-end orders ensure the basic performance of the company. On the other hand, the company grasps the wave of new technologies, explores diversified and high gross profit businesses, and has an in-depth layout in the fields of metauniverse, NFT and VR / AR through endogenous extension. The company has the potential to build a global (virtual scene + offline scene) space design platform company. Therefore, we compare the company to the content + technology platform company in the standard sector. It is estimated that the net profit attributable to the parent company in the 21st-23rd year will be 454 / 582 / 738 million, with a growth rate of 32.6% / 28.1% / 26.9%, EPS of 1.08/1.38/1.75 yuan, corresponding to PE of 22 / 17 / 14x, which is covered for the first time and rated as "overweight".
