Tianyu Digital Division ( Dalian Zeus Entertainment Co.Ltd(002354) )
Event: the company recently released an annual report. In 2021, the company achieved a revenue of 1.764 billion, a year-on-year increase of 77.07%, and a net profit attributable to the parent company of 427207 million yuan, a year-on-year decrease of 72.07%; The basic earnings per share is 0.03 yuan. No dividend, no increase.
After the reorganization, the company gradually divested or accrued loss businesses, and non recurring profits and losses had a great impact on the performance. The decline in performance in 2021 was mainly due to the large losses of some joint-stock companies and the impairment of long-term equity investment; And the company’s large investment income due to debt restructuring in 2020. It is expected that the company will continue to deal with relevant loss making assets in the future, further optimize the asset structure and business layout, and provide sufficient capital and resource support for new businesses.
The e-sports game business has changed from “heavy” to “light”, and the digital sports platform has made a strong start. In 2021, the company sold the loss making business of overseas heavy game distribution, focused on leisure sports track and built a digital sports platform “PK. Now!”, It creatively integrates leisure games with e-sports, and significantly improves the activity of leisure games through low-cost and high-frequency digital competitive events. By the end of the reporting period, there were more than 60 boutique leisure games and “PK. Now!” Cooperation, the number of registered users reached 580000, of which 43% were female users, breaking the industry practice of male users on E-sports platform.
Data traffic business from “point” to “surface”, embracing the new blue ocean of digital economy. In terms of traffic operation, the company’s data traffic ecological park has gathered more than 150 enterprises, and the newly established digital marketing business line achieved an income of 1 billion yuan + in that year. At the same time, the company has laid out the virtual digital human business and will focus on the business development of virtual digital human production and IP incubation operation based on the rich application scenarios in the field of E-sports games and data traffic.
Maintain the “overweight” rating. After the reorganization, the company will continue to peel off the loss making businesses invested or participated in in in the early stage. In the future, it will continue to adhere to the business direction of “E-sports drive games and data flow drive the real economy”, and seize the historical opportunity of the development of digital economy. Accelerate the extension to the full truth Internet integrating virtual reality. Give the company a profit forecast of 0.08/0.14/0.20 yuan from 2022 to 24, corresponding to 59 / 34 / 23 times PE, and maintain the “overweight” rating
Risk warning: the risk that the business development is not as expected; Risk of impairment of goodwill and long-term investment
