\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 158 China Sports Industry Group Co.Ltd(600158) )
Event:
In 2021, the company realized an operating revenue of 1.515 billion yuan, a year-on-year decrease of 24.11%; The net profit attributable to the parent company was 549197 million yuan, a year-on-year increase of 1.79%; The basic earnings per share was 0.0572 yuan, a year-on-year decrease of 7.59%.
Comments:
The overall business performance is stable, and there are many highlights in sports business
In 2021, the overall operation of the company remained stable, with certain differentiation in the performance of sub businesses; Among them, the real estate business is affected by the development cycle, and the revenue has a certain decline; The event management and operation business of sports business have been affected by the repeated epidemic, but the four businesses of stadium operation management, leisure and fitness, sports brokerage business, certification and testing have benefited from the intensive holding of 21-year competitions and the continuous enhancement of the company’s business capacity, which makes the overall operation of sports business still stable. In terms of event business, the company insists on focusing on the creation and operation of large-scale event activities. During the reporting period, the company completed the event operation of the 21 year Beijing half marathon and the first 21 year Huai’an full marathon, and once again obtained the exclusive authorization for the development and operation of the commercial rights of the “Beijing marathon”, The company won the operation rights of “20212023 Nanjing marathon”, “China Chengdu Tianfu greenway International Cycling Race” and “Kunming Dianchi Lake sectorau cycling Invitational race”. In terms of market development, the company successfully completed the market development and sponsor rights and interests of the National Games and Special Olympics, and actively expanded and reached the “Chengdu World University Games uniform management consulting service” and “Guangxi National Youth Games” The Winter Olympic franchise project has also been successfully completed. In terms of ticket operation, the company completed the exclusive ticket operation of the 14th National Games in 2021, won the ticket operation service project of Chengdu Universiade, won the bid and successfully operated the ticket operation project of Yangzhou World Horticultural Expo. In terms of sports communication business, the company has gradually formed a common development model of four business segments: sports brokerage, sports public relations, sports resource integration, sports advertising and new media. In terms of sports brokerage, it has initially realized the transformation and innovation from traditional intermediary service to exclusive resource agency, signed a number of world champion athletes such as Ren Ziwei, Zhang Yufei and Wang Shun, and improved the core competitiveness of its own resources. In terms of sports public relations, the 35th Olympic Day activities, China square dance competition and other large-scale activities were completed. In terms of advertising and new media, new business growth points have been formed through the integration of all media resources. At present, a number of sports talents have been signed and the first Chinese sports MCN organization has been established.
In terms of physical education and training business, the company starts to carry out the overall business layout around the fields of physical vocational education, physical vocational training and physical skill training. In terms of vocational training, the business model of vocational training and skill training for major groups including sports college students, sports practitioners and retired athletes has been preliminarily established by means of investment cooperation.
In terms of sports lottery business, the company is mainly involved in sports lottery system integration, product printing, terminal equipment sales and maintenance business. In terms of system integration, during the reporting period, the company continued to optimize technical resources, actively carried out the construction of field standards, continued to expand new channels such as commercial complexes and small and micro retail outlets, and orderly promoted the construction of new data centers.
In terms of sports space business, as the one-stop sports space operator with the widest coverage in China, the company is committed to providing customers with one-stop services integrating “consultation, design, financing, construction and operation”. During the reporting period, the company signed 11 high-quality space projects such as Beijing yifangyuan sports and health city and Guangdong Zhanjiang Olympic Sports Center; More than 200 events were held throughout the year, including more than 20 national events; There are more than 30 landing design consulting projects in many places, including major projects such as the operation design of Chun’an competition area of Hangzhou Asian Games, the operation design of Hangzhou Asian Games and Wenzhou Olympic Sports Center.
Relying on the “fourteenth aspect” of the company’s digital business development, it has become an important force for the gradual implementation of the “fifth aspect” of the company’s digital business development. During the reporting period, the company completed the research and phase I construction of “integrated intelligent supervision platform for events and activities”; Completed the product design and initial function development of the service guarantee platform of the national community games, and promoted the “national community games – Chess pilot competition” and other events in the form of Online + offline; Ensure and assist the scientific training services of some participating projects of the Winter Olympic Games of the winter sports center of the General Administration of the people’s Republic of China; Focusing on the intelligent upgrading of sports space, the venue operation and management platform independently developed by the company – China Sports cloud pavilion has been put into operation in multiple venues. At the same time, in the field of digitalization of sports public services, the company has undertaken the design of national fitness public service platform and the construction of relevant modules / subsystems. In addition, the company also released the digital collection of Chinese ice and snow sports, and actively explored the product research related to sports IP digitization and sports digital assets.
In terms of standard certification business, the company is currently an authoritative sports standardization service, certification and testing organization in China. During the reporting period, the company established a special class for the construction of sports system standards and norms, and provided standard setting consulting services for more than 10 national sports centers and associations. In terms of certification and acceptance, the company efficiently completed various audit tasks throughout the year, and the total number of valid certification certificates for various certification businesses exceeded 6600 during the reporting period. In terms of inspection and testing, the company has completed the inspection and acceptance projects of a number of important sports facilities such as Hangzhou Asian Games, Chengdu Universiade, Shantou Asian Youth Games and Shaanxi national games, and the Beijing chemical laboratory is ready for operation.
In terms of international sports business, during the reporting period, the company completed the training of Myanmar sports team in China and the construction of sports technology engineering of Madagascar National Stadium; Ensure the normal implementation of technical assistance projects for stadiums in Uganda and Niger under epidemic conditions; Actively participated in the bidding for the implementation of foreign aid projects, successfully won the bid for the implementation of sports technical assistance projects in Cambodia, hosted the 20th anniversary football match of SCO, and broadened the scope of business.
Investment rating and profit forecast
On the whole, the company’s overall operation still maintains a steady development trend, and its relative competitiveness in the whole industry is steadily increasing. The impact of repeated epidemics and fluctuations in the real estate cycle on the company’s medium and long-term operation will be gradually eliminated. It is expected that the performance will continue to be stable in 2022. We continue to be optimistic about the company’s sustainable layout and comprehensive competitiveness in the sports industry, and its potential in the future layout of sports business will continue to be tapped and released; Continue to give the company an investment rating of “overweight”. It is estimated that the company’s EPS from 2022 to 2024 will be 0.07, 0.10 and 0.13 yuan / share respectively.
Risk tips
Industrial policy risk, business development fails to meet expectations, major changes have taken place in operation, the real estate industry continues to be depressed, and epidemic control continues to delay sports events.
