\u3000\u3 China Vanke Co.Ltd(000002) 858 Shanghai Lisheng Racing Co.Ltd(002858) )
[matters]
Recently, at the eighth meeting of the Fourth Board of directors held by the company, the proposal on the proposed change of the company’s full name and securities abbreviation was passed, which proposed to change the company’s securities abbreviation to “Lisheng sports”, which needs to be submitted to the general meeting of shareholders for deliberation.
[comments]
Rename, clarify the company’s business priorities and improve market awareness. In recent years, the company’s business capacity has been continuously improved. In addition to the original racing business, the company further participates in Yuedong world and cooperates with “Yuedong circle” app to layout the national fitness business. With the gradual development of new business, the original full name and securities abbreviation of the company can not effectively reflect the company’s business. The updated name can clarify the company’s business priorities, which is helpful to expand new business and improve market awareness.
The traditional business recovered and the performance was excellent. Recently, the company released its annual report for 2021, with a revenue of 281 million yuan (YoY + 40.4%) and a net profit of 3.1383 million yuan in 2021. Previously, the company’s event operation, venue operation and other businesses were greatly affected by the epidemic prevention and control and could not be fully carried out. The recovery of the epidemic in 2021 boosted the company’s traditional business and turned losses into profits, but it did not fully return to the level before the epidemic. We believe that with the normalization of epidemic prevention and control, the company’s traditional business is expected to further pick up.
Take the east wind of policy and make efforts to keep fit for the whole people. The sports industry is the key support direction of China, supported by many policies such as the national fitness plan (20212025) and the 14th five year plan for sports development. Sports bank has made some breakthroughs in both B / g end and C end to promote national fitness with a diversified business model. We believe that the new business of national fitness is the company’s further exploration in the sports industry. The recovery of the sports industry will accelerate the development of the company’s new and old businesses and form a two wheel drive.
[investment suggestions]
We believe that the company’s traditional racing business is expected to return to the original level with the normalization of epidemic prevention and control. We are optimistic about the rapid growth of national fitness business and maintain the company’s previous profit forecast. We predict that in 202224, the company’s revenue will be 421 / 615 / 707 million yuan, the net profit attributable to the parent company will be 33 / 65 / 78 million yuan, and EPS will be 0.01 billion yuan 20 / 0.41 / 0.49 yuan / share, PE corresponding to 58 / 29 / 24 times, maintaining the “overweight” rating.
[risk tips]
The epidemic repeatedly affected the normal development of traditional business
New business performance is less than expected
