Inmyshow Digital Technology (Group) Co.Ltd(600556)
The performance continued to grow, and the company increased its investment in product upgrading and innovation business. In 2021, the company achieved a revenue of 4.512 billion, a year-on-year increase of 47.42%, a net profit attributable to the parent company of 354 million, a year-on-year increase of 19.9%, a net profit deducting non attributable to the parent company of 420 million, a year-on-year increase of 12.66%, a compound annual growth rate of 57.7% in revenue and 43.2% in net profit deducting in recent five years. The company has made accurate judgment on the economy of celebrities, continuously improved the efficiency of the platform, and a year-on-year increase of 124% in innovative business. In 21 years, the growth rate of the company’s net profit was lower than that of its revenue, which was mainly due to the company’s increased investment in the upgrading and transformation of its main products and the innovation business of honguniverse. The company plans to distribute a cash dividend of 0.20 yuan (including tax) to all shareholders for every 10 shares.
The efficiency of the platform has improved significantly, the customer management tends to be refined, and the ecological structure of celebrities is healthy and balanced. In 2021, the number of platform orders continued to grow explosively, with a year-on-year increase of 205.3% to 3.807 million; The number of brand customers decreased slightly, and the retention rate continued to increase. There were 7918 active business customers on the weiq platform. Compared with 2020, the retention rate of brand customers decreased slightly, reaching 79.6%. The investment amount of retained customers increased by 39.3%, continuing the high growth of 20 years; The ecosystem of platform celebrities tends to be healthy, and the proportion of waist and tail net red income increases. The number of registered celebrities was 1.921 million and the number of professional celebrities was 535000, both of which increased significantly. The income of waist and tail celebrities accounted for 81.4%, forming a solid cornerstone of celebrity ecology.
Welcome to the new Web3 0 era, build “Rainbow universe” and “topholder” platforms. 1) 3D virtual life community “Rainbow universe”. Since the on-line survey, the number of subscribers has been over 400 thousand, and the IP is too idle, the talented panda has been in the community to interact with fans, and has worked with famous brands such as Lafite group and Longhu group to explore the digital technology empowerment entity economy. 2) We media digital collection tool set “topholder number one collector” has been officially connected to the rainbow universe open application platform, and has reached strategic cooperation with microblog to provide digital collection services for microblog creators.
Risk warning: long recovery cycle of innovative business; Brand customers suppress gross profit margin; New media marketing competition is fierce.
Investment suggestion: the company’s fundamentals are good, the efficiency of the platform is significantly improved, and the business end and popular end maintain benign growth. In the short term, the company’s high growth is affected by business expansion. In the long term, the weiq platform continues to upgrade, and the company strengthens Web3 The layout of blockchain technology in the era of 0, build a meta universe and digital collection platform, and enable a new marketing ecology. We are still optimistic about the company’s long-term growth, but in the short term, the company is suppressed by the downward advertising environment and the company’s cost and R & D end. We reduce the company’s profit by 37.5% / 35.3% in 22-23 years. It is estimated that the company’s net profit attributable to the parent company will be 482 / 659 / 897 million in 22-24 years, with a growth rate of 36% / 36.8% / 36.1% and EPS of 0.27/0.36/0.50 yuan, corresponding to pe33 / 24 / 18x, maintaining the “buy” rating.
