\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 556 Inmyshow Digital Technology (Group) Co.Ltd(600556) )
Event: in 2021, the company achieved revenue of 4.512 billion yuan, yoy + 47.42%, net profit attributable to parent company of 354 million yuan, yoy + 19.90%, net profit not attributable to parent company of 420 million yuan, yoy + 12.66%. In 2021q4, the revenue is 1.261 billion yuan, yoy + 50.81%, the net profit attributable to the parent company is 99 million yuan, yoy + 105.71%, and the net profit not attributable to the parent company is 91 million yuan, yoy-16.43%. The performance basically meets our expectations.
The revenue continued to increase, and the increase in investment slowed down the growth of net profit. In 2021, the company’s operating revenue increased by 47.42% year-on-year, mainly benefiting from the company’s continuous R & D investment in weiq platform and data products, and the processing capacity of the platform increased year by year. In 2021, the gross profit margin of the company was 22.28%, yoy-1.10pct, and the net profit margin was 7.44%, yoy-2.14pct. At the rate side, the sales expense rate is 6.42% (YoY + 1.93pct), which is mainly due to the expansion of business scale and the increase of investment in innovative business; The management fee rate is 3.43% (YoY + 0.62pct); The R & D expense rate is 2.87% (YoY + 0.43pct). In terms of cash flow, the company’s net operating cash flow in 2021 was – 438 million yuan, compared with – 316 million yuan in the same period last year, which was mainly due to the increase in the proportion of brand customer sales in 2021 and the relatively long accounting period given to brand customers with good credit, resulting in the increase of accounts receivable, but the overall improvement since 2021q3.
The order volume of weiq platform has increased rapidly, and the merchants and popular end have developed continuously and healthily. In 2021, the company’s celebrity marketing platform business achieved a revenue of 4.290 billion yuan, a year-on-year increase of 44.87%. The number of orders reached 3.807 million (YoY + 205.3%), with an average order amount of 1127 yuan (2375 yuan in the same period last year), and the commercialization potential of waist and tail celebrities was gradually released. In 2021, the platform demand conversion rate was about 12.9%, compared with 10.4% in the same period last year. The platform demand conversion capacity was gradually improved. Affected by the epidemic, the number of active businesses has declined, but in the long run, the penetration rate still has great room to improve. In 2021, the number of active business customers on weiq platform reached 7918 (yoy-5.08%), including 799 brand business customers (yoy-6.55%), and the retention rate of brand businesses reached 79.6% (YoY + 1.6pct). The number of professional red people at the red end has increased significantly and the ecology is healthy. By the end of 2021, the number of platform registered celebrity accounts has reached 1.921 million (YoY + 30.33%), of which the number of professional celebrity accounts has reached 535000 (YoY + 83.85%), accounting for 27.85% (YoY + 8.11pct); The number of MCN institutions settled on the platform is 11041 (YoY + 47.39%); The income of waist and tail celebrities accounts for 81.4%, and the industry distribution is balanced. With the optimization of weiq platform model, the improvement of order matching efficiency and parallel processing capacity of the platform, and the sustained and healthy development of merchants and popular clients, we are optimistic about the sustained and high growth of platform revenue.
We will continue to innovate our business and lay out blockchain technology. The company continued to explore the business boundary of Hongren economy, and performed well in digital products and derivative services. In 2021, the innovative business achieved a revenue of 222 million yuan, yoy + 123.63%. In addition, the company actively explored blockchain technology, launched 3D virtual social software “Rainbow universe” and our media digital collection tool set “topholder number one collector”, and actively explored new platforms and new ways of realizing content creators.
Profit forecast and investment rating: considering that the epidemic situation may affect the investment of businesses and the company’s increased investment in innovative business, we lowered the previous profit forecast. It is estimated that the EPS in 20222024 will be 0.27/0.34/0.43 respectively (0.38/0.55 yuan before 20222023), and the corresponding PE of the former stock price will be 32 / 26 / 20x respectively. We are optimistic that the company, as the leader of Hongren economy, will gradually improve the ecological layout of Hongren, highlight the synergy between innovative business and main business, and maintain the “buy” rating.
Risk tip: the recovery risk of accounts receivable, macroeconomic depression and intensified industry competition.
