Inmyshow Digital Technology (Group) Co.Ltd(600556) released the performance in 2021, and the annual operating revenue in 2021 was 4.51 billion yuan, a year-on-year increase of 47.4%; The net profit attributable to shareholders of listed companies was 350 million yuan, a year-on-year increase of 19.9%; After deducting non recurring profits and losses, the net profit was 420 million yuan, a year-on-year increase of 12.7%. The company's revenue CAGR in recent five years (20172021) has reached 57.7%; After deducting non net profit, the five-year CAGR reached 43.2%.
Main performance comments and Prospects
The orders of weiq, a popular marketing platform, doubled. The company's main revenue comes from Hongren marketing platform business and Hongren economic ecological chain innovation business. In 2021, the business revenue of marketing platform was 4.29 billion yuan, with a year-on-year increase of 45%, accounting for 95% of the total revenue. The revenue of celebrity marketing platform is mainly contributed by weiq platform. In 2021, the number of platform orders exceeded 3.8 million, with a year-on-year increase of 205%; The retention rate of brand customers reached 79.6%; The number of professional celebrity accounts is 535000, an increase of 244000 compared with the end of 2020. Relying on big data technology, weiq analyzes the marketing needs of advertisers and accurately distributes orders to content creators, who are responsible for content creation and release. At present, weiq has become one of the preferred platforms for traditional brands to cut into content marketing and launch new consumer brands. Other enabling tools around MCN and advertisers also include: agent service system "weiq-saas", live e-commerce product "heat wave data", we media value evaluation system "Crowley", etc.
Explore and extend the Hongren economic and ecological chain and develop innovative business. Relying on its creator resources, brand resources, big data technology and service capabilities in the celebrity marketing industry, the company continues to explore upstream and downstream of the industrial chain. In 2021, the revenue from innovative business was 222 million yuan, a year-on-year increase of 124%, accounting for 5% of the revenue. At present, the distribution directions are as follows: 1) the popular vocational education " Inmyshow Digital Technology (Group) Co.Ltd(600556) education" has reached 213 colleges and universities in China, and 40 have signed cooperation contracts; 2) The diary of new consumer brand house cat has accumulated sales of more than 100 million in 2021; 3) Evaluation community West Fifth Street, etc.
Based on Web3 0 related technology, layout meta universe field. The company launched the virtual social platform Mars micro community as early as 2011. After the layout of blockchain technology in 2018, the company used relevant technologies to upgrade the social platform to a 3D virtual life community "Rainbow universe". Since the launch of the internal test in August 2021, hongcosmos has accumulated more than 400000 reservation users. It has cooperated with Longhu group, Lafite wine and other brands to build a marketing virtual interactive scene and create a content ecology. In addition, the "topholder number one collector" of our media digital collection tool set has been officially connected to the rainbow universe open application platform to enrich the ecological construction of UGC content in the platform.
The gross profit margin fell into a stable range and invested heavily in technology research and development. The company's overall gross profit margin in 2021 was 22.3%, a slight decrease of 1.1 percentage points over the same period, mainly due to the increase in the procurement cost of media resources. The gross profit margin of marketing platform business decreased by 1.26 percentage points year-on-year, and the gross profit margin of innovative business increased by 3.5 percentage points year-on-year. We believe that the gross profit margin of the company has fallen into a stable range of 20% - 25%. In 2021, the sales expense rate was 6.4%, with a year-on-year increase of 1.9 percentage points, mainly due to the expansion of business scale and the increase of marketing investment in innovative business. R & D expenses increased by 73% year-on-year. In 2021, we focused on increasing R & D investment in projects such as weiq platform and rainbow universe.
Investment advice
Celebrity marketing is one of the main ways to realize private traffic and has broad development prospects. However, due to the high degree of decentralization, how to efficiently connect multiple parties and realize cross platform delivery is the key to the development of the industry. We believe that Inmyshow Digital Technology (Group) Co.Ltd(600556) helps solve the problem of inefficient matching caused by poor cross-border information, and realizes the full link coverage of celebrity marketing. It has a certain scale advantage and efficient linkage in various industrial resources. Continuous attention is recommended.
Major risks
The macroeconomic downturn leads to the contraction of advertisers' investment budget; Advertising supervision exceeds expectations; Industry competition intensifies; New business investment exceeded expectations, driving down profit margins.
