\u3000\u3000 Three’S Company Media Group Co.Ltd(605168) (605168)
Events
The company issued the announcement of performance increase in 2021. It is expected to achieve an operating revenue of 3.5-3.7 billion yuan in 2021, with a year-on-year increase of 24.66% – 31.78%. The net profit attributable to the parent company is expected to be RMB 500-510 million, with a year-on-year increase of 37.81% – 40.56%, and the performance is in line with expectations.
Comments
The performance certainty has been verified, and new high-quality customers in the field of FMCG financial auto enterprises have been added
The company expects to realize a net profit attributable to the parent company of RMB 500-510 million in 2021, with a year-on-year increase of 37.81% – 40.56%, which is in line with our previous expectation of rapid growth of performance. The performance growth is mainly due to the company’s rapid addition of high-quality customers with excellent integrated marketing service level. In 2021, the company’s new customers include FMCG customers such as Yibao, Xuehua, Heineken and Foshan Haitian Flavouring And Food Company Ltd(603288) under China Resources, new consumer customers such as giant biology, head customers in the medical and beauty industry, high-quality financial customers such as postal savings and China Minsheng Banking Corp.Ltd(600016) and the national sports lottery center. In addition, we will continue to develop integrated marketing business in the automotive industry, and add high-quality car enterprise customers such as Dongfeng Honda and FAW Toyota in 2021, which is expected to contribute incremental performance in 2022.
Cooperate with beiwen center to jointly establish a trading platform for digital cultural and creative products
The company recently signed a strategic cooperation agreement with beiwen center to jointly establish a trading platform for digital cultural and creative products, aiming to provide an online trading platform for digital cultural and creative creators and users. Beiwen center is a comprehensive platform for national cultural element construction and cultural and financial innovation services centered on Beijing, which was established in 2015 with the participation of central enterprises. The trading platform consists of three parts: digital transformation platform, trading platform and forum. At the initial stage of the platform, the main way to conduct transactions is to issue a one-off pricing and selling transaction. The platform charging mode includes digital conversion and the upper chain cost, transaction platform transaction fees, trading platform buyers and sellers trading consideration, all of which are settled through online legal civil currency law, including WeChat, Alipay, online banking, digital RMB wallets, etc. We believe that with our own professional ability and resource advantages, this cooperation is expected to strengthen the company’s profitability and thicken the company’s future performance.
New high-quality customers superimposed on new business layout, optimistic about the sustained and rapid growth of the company’s future performance
By constantly expanding new high-quality customers, the company further strengthens its customer service ability and influence, and improves its profitability. In addition, it is expected to further increase the company’s performance in the future by making use of its professional integrated marketing ability and resource advantages to layout new business of digital assets. We believe that the performance gambling target set in the equity incentive plan for core executives previously released by the company is expected to be successfully completed. The net profit in 2021 and 2022 is not less than 500 / 700 million yuan respectively. The scale of operating performance is expected to be released quickly in the next two years. We are optimistic about the performance certainty of the company and the excellent operating ability of the management.
Profit forecast and valuation
New and old customers make efforts at the same time, and the new business layout is expected to bring performance increment. We expect the company’s operating revenue to be 4.608 billion yuan, 7.022 billion yuan and 10.090 billion yuan from 2021 to 2023, with a year-on-year growth rate of 64.1%, 52.4% and 43.7%, and the net profit attributable to the parent company to be 508 million yuan, 711 million yuan and 1.038 billion yuan, with a year-on-year growth rate of 40%, 39.9% and 46%, and EPS to be 7.29, 10.20 and 14.89 yuan / share, Corresponding to the current share price, PE is 27.6 / 19.7 / 13.5 times, maintaining the “buy” rating.
Risk tips
The economic situation is grim; New customer expansion does not meet expectations; The construction and operation of the platform did not meet expectations.
