\u3000\u3 Bohai Water Industry Co.Ltd(000605) 168 Three'S Company Media Group Co.Ltd(605168) )
Event: on] April 16, 2022, the company released the performance report for the first quarter of 2022.
In 2022q1, the company achieved an operating revenue of 895 million yuan, a year-on-year increase of 58.83%; The net profit attributable to the parent company was 60 million yuan, a year-on-year increase of 13.07%; The gross profit margin and net profit margin in a single quarter were 14.20% / 6.72% respectively, with a year-on-year decrease of 3.12pct/2.72pct.
The main reason for the substantial growth of the company's revenue in 2022q1 is that the company continues to develop leading customers in automobile and other industries, and the amount of marketing budget invested by the original leading customers is increased. 2. The main reasons why the year-on-year growth rate of net profit attributable to the parent company of 022q1 is lower than that of revenue are as follows: 1) the company has made great efforts to expand customers in the automotive industry. In order to better serve the newly expanded head car customers such as SAIC GM Buick, Dongfeng Honda and FAW Toyota, the company has newly recruited a group of professional customer service talents in the automotive industry during the reporting period to meet the demand for talents due to the rapid development of business, Therefore, the increase of labor cost in the reporting period is higher than that in the same period of last year; 2) Affected by the multi-point outbreak in the country, the company's high gross profit business scene activity service business and campus media marketing service business were limited during the reporting period, and some businesses could not be carried out normally.
Comments:
Continue to develop integrated marketing business in the automotive industry to ensure performance growth. In recent years, the company has vigorously implemented the development strategy of developing integrated marketing business in the automotive industry. During the reporting period, relying on its professional integrated marketing service ability, the company won the bid for Dongfeng Honda's 2022 online advertising agency project, and was selected to provide brand publicity and communication and other marketing services for FAW Toyota's new models. At present, it has accumulated FAW Volkswagen, FAW Pentium, FAW Toyota, SAIC GM Cadillac, Dongfeng Honda Great Wall Motor Company Limited(601633) and many other high-quality customers in the automotive industry to ensure future performance growth.
The stickiness of existing customers is high, and we will continue to dig deep into the marketing budget. For the original leading customers in consumer goods, telecom operators, finance, automobile and other industries, the company promotes the formation of large-scale effect of key customer advertising by building a more efficient marketing methodology, so as to obtain the incremental budget of more stock key customers.
The digital content trading platform to be launched is worth looking forward to. The company signed a strategic cooperation agreement with beiwen center in January 22 and plans to jointly establish a digital cultural and creative product trading platform, which is expected to be launched this year and become the second growth curve of the company. On April 13, China Internet Finance Association, Bank Of China Limited(601988) Industry Association and China Securities Industry Association jointly called on member units to jointly launch initiatives, including "protecting the intellectual property rights of bottom commodities", "preventing prices from deviating from the basic law of value" and "Resolutely Curbing the tendency of NFT financialization and securitization", which have a certain impact on investment sentiment. We believe that there is no need to worry too much. We propose to clarify the value of NFT in protecting intellectual property rights and still support culture.
Investment suggestions: Three'S Company Media Group Co.Ltd(605168) has stable head customers in many industries, including head state-owned enterprises such as Yili, three operators and four banks. It will update and develop new customers in many industries such as China Resources Group, FAW Volkswagen, Dongfeng Honda and FAW Toyota in 21 years, and there may be investment income elasticity in the next 2-3 years. We maintain the early-stage profit forecast. It is estimated that the net profit attributable to the parent company in 22-24 years will be 744 / 1029 / 1322 million yuan, the corresponding EPS will be 10.67 / 14.76 / 18.97 (7.36 / 10.18 / 13.08 yuan after conversion and dilution), the corresponding valuation will be 12.3x/8.9x/6.9x, and the early-stage target price will be 266.75 yuan / share. Considering that the company benefits from the growth trend of continuous marketing and promotion investment of core state-owned enterprises, and the layout of NFT and digital virtual human is expected to form a catalyst, the "buy" rating will be maintained.
Risk factors: increased market competition, decline in operating interest rates, changes in industrial policies and other risks.
