\u3000\u30 Xuchang Ketop Testing Research Institute Co.Ltd(003008) 60 Beijing Fengshangshiji Culture Media Co.Ltd(300860) )
Event overview
On the evening of April 23, 2022, Beijing Fengshangshiji Culture Media Co.Ltd(300860) released its annual report. In 2021, the company achieved an operating revenue of 467 million yuan, a year-on-year decrease of 52.56%, and a net profit attributable to the parent company of 921642 million yuan, a year-on-year decrease of 64.62%; It is proposed to distribute a cash dividend of 0.70 yuan (including tax) for every 10 shares to all shareholders. The company also released the first quarter report of 2022. In Q1 of 2022, the company achieved a revenue of 138 million yuan, a year-on-year increase of 31.38%, and a net profit attributable to the parent company of 89.14 million yuan, a year-on-year increase of 212.03%.
Gross profit margin remained at a high level, and new R & D projects focused on online performing arts
According to the 2021 annual report, the company's overall gross profit margin was 40.62%, up 2.25 PCT year-on-year; By industry, during the reporting period, the revenue growth of large-scale cultural performance industry, landscape art lighting and interpretation industry and cultural tourism interpretation industry were 11.61%, - 20.44% and - 73.94% respectively, and the gross profit margin levels were 27.00%, 52.76% and 41.67% respectively, with changes of 1.34pct, 16.36pct and 0.5pct respectively. In terms of expense rate, the R & D rate was 6.33%, increased by 5.28pct compared with the same period last year, the sales rate was 2.49%, increased by 1.18pct compared with the same period last year, the management rate was 10.77%, increased by 6.82pct compared with the same period last year, and the financial expense rate was - 1.46%, which was - 0.90% compared with the same period last year. In 2021, the company's R & D expenses increased by 188.14% year-on-year, and a number of new R & D projects were added. Among them, the research project "virtual performing arts cloud platform system development" focused on secondary meta cultural performing arts. The company expects that the online performing arts market will usher in an explosion period.
Major projects such as the Winter Olympics show their comprehensive strength, with a considerable number of orders on hand to support their performance
In 2021, the company undertook the creative design and production of the large-scale situational epic "great journey" on the 100th anniversary of the founding of the party and the "light of China" theme lighting exhibition of the China Pavilion of the Dubai World Expo. At the same time, the company is responsible for the lighting design and production of the opening ceremony of the 2022 Beijing Winter Olympic Games, the creative design and production of the closing ceremony of the Beijing Winter Olympic Games and the opening ceremony of the Paralympic Winter Olympic Games, and join hands with major Olympic events to explore and lead the new trend of digitization of the cultural industry. With excellent creative design ability, rich experience in major projects, good market reputation and the business model of whole process service, the company has successfully created a series of projects with extensive influence. According to the annual report, as of December 31, 2021, the amount of orders on hand of the company was 814 million yuan, which can continuously support the subsequent performance.
Layout the meta universe VR performing arts and dance beauty, and explore the C-end Cultural Tourism Performing Arts Project
In 2021, the company established a subsidiary, Fengshang mutual entertainment, and began to layout VR performing arts and dance beauty related to the meta universe. In January 2022, the first winter olympic games virtual interactive ice and snow Music Carnival hosted by the Ministry of culture of BOCOG and undertaken by Beijing Fengshangshiji Culture Media Co.Ltd(300860) landed on the night of light gathering, and the live virtual anchor stepped on the stage. Six sub scene spaces and multi-level parallel worlds were arranged, successfully exploring a new mode of online performance. We expect to start contributing performance revenue in 2022 and further improve the barriers of business model. The company will invest more in self financing and self built toC tourism projects in 2022. In 2022, the company built the "Sky632" light and shadow interactive immersion technology on the 126 floor of Shanghai Center Tower, and will continue to cooperate with local state capital to obtain high-quality tourism resources, and create a new type of Tourism brigade, which will enhance the traditional tourist consumption scenario and service mode. It is expected that the urban cultural, business and tourism complex project will be implemented in Hangzhou and Sanya successively in 2022. In the post epidemic era, the culture and tourism industry is supported by multiple policies. The "integration of culture and tourism" is one of the main subjects of cultural industry development highlighted in the 14th five year plan document. We are optimistic about the future prosperity of the culture and tourism industry.
Investment suggestion: maintain the "overweight" rating.
In October 2021, the company announced that it planned to grant no more than 2.2 million restricted shares to 81 incentive objects (6 senior managers and 75 core technologies / businesses), accounting for about 1.61% of the total share capital of the company, and the grant price was 26.63 yuan per share. The performance evaluation goal of the incentive plan is that the net profit of the company from 2022 to 2024 will not be less than 300 million yuan, 400 million yuan and 500 million yuan respectively, reflecting the long-term confidence of the company's management in future operation.
Combined with the annual report data and the performance guidance of equity incentive, we adjusted the company's forecast of revenue of RMB 1.058/13.44 / (unpredicted) billion to RMB 1.141/15.45/1.881 billion from 2022 to 2024, adjusted the forecast of net profit attributable to parent company of RMB 301 / 402 / (unpredicted) million from 2022 to 2024 to RMB 301 / 404 / 503 million, and adjusted EPS 2 The closing price of the shares is predicted to be RMB 93.57 and that of the shares not held on November 13 / 22 is predicted to be RMB 20.57, corresponding to the increase of PE 2 / 20 of 2023 / 23, respectively.
Risk tips
Risks in the implementation of major national projects; Risk of market competition; The risk of slower investment growth in downstream industries.
