\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 13 Mango Excellent Media Co.Ltd(300413) )
Event overview
On April 24, 2022, Mango Excellent Media Co.Ltd(300413) released the annual report of 2021 and the report of the first quarter of 2022. The net profit of the parent company was RMB 15.39 billion, a year-on-year increase of RMB 16.31 billion, with a year-on-year increase of 6.61%. The company plans to distribute a cash dividend of 1.30 yuan (including tax) for every 10 shares. In the first quarter of 2022, the company achieved a revenue of 3.124 billion yuan, a year-on-year decrease of 22.08%, and a net profit attributable to the parent company of 507 million yuan, a year-on-year decrease of 34.39%.
The core business grew steadily, and the number of effective members exceeded 50 million
In 2021, the company built a high threshold long video platform, and the revenue scale of mango TV Internet video business, the core main platform, maintained a steady growth, with a gross profit margin of 43.61%, an increase of 2.92pct over the same period last year. During the reporting period, the company actively explored new marketing models, and the advertising business revenue reached a new high of 5.453 billion yuan, a year-on-year increase of 31.75%. The business income of operators increased significantly, realizing a revenue of 2.12 billion yuan, with an increase rate of 27.17%. In 2021, the company achieved a member income of 3.688 billion yuan, a year-on-year increase of 13.3%, and the number of effective members reached 50.4 million, an increase of 39.5% over the end of 2020. By strengthening channel cooperation, the company further improved the member conversion rate and user penetration, comprehensively upgraded member rights and interests, and created customized content for variety members.
Deeply cultivate the theme creation and abide by the content innovation
In 2021, the company launched the “centennial of the founding of the party” tribute drama “ideal shines on China” and “refining into steel”, established a documentary studio, launched 17 high-quality works with positive energy as the main theme, such as “the daughter of the party”, “youth at the right time” and “shining ordinary: Youth relay”, and prepared more than 20 documentaries such as “these ten years” and many film and television dramas such as “long river in the world”, playing the strongest voice of the mainstream publicity to welcome the 20th CPC National Congress. The company abides by the high threshold and long video platform, and focuses on high-quality content production. Mango TV has 26 variety shows, 29 film and television production teams and 34 strategic studios of “Xinmang plan”. On April 24, 2022, the premiere of music variety show “sound never stops” received a warm response. The company has rich reserves of high-quality content throughout the year, which is expected to support the stable growth of performance.
Layout the new track and explore the innovation of meta universe enabling content
The company has independently developed the “Guangguang” cloud production and broadcasting platform, successfully applied 5g and VR production and broadcasting technology to the “family birth night” of “brother through thorns”, and successively launched a series of innovative achievements, including virtual host, interactive video platform, imgo ultra-high definition video repair and enhancement platform, Internet 4K ultra-high definition production and broadcasting platform, 3D video content reality enhancement system, etc. The company continues to focus on AR, VR, XR and other cutting-edge technologies. Based on the 5g Key Laboratory awarded by the State Administration of radio, film and television, the company promotes the R & D and application of NFT, digital human production and virtual content production and broadcasting technology. The exploration of new business forms is expected to provide new empowerment for the company’s content innovation.
Investment advice
Combined with the annual report and the first quarterly report, we adjusted the forecast of the company’s revenue of 19.56623336 / (unpredicted) billion yuan in 20222024 to 17.716200.33/22.171 billion yuan, adjusted the forecast of net profit attributable to the parent company of 2.865/34.41 / (unpredicted) billion yuan in 20222024 to 2.518/29.16/3.255 billion yuan, and adjusted EPS 1.2 billion yuan 53 / 1.84 / (not predicted) yuan is predicted to 1.35/1.56/1.74 yuan, corresponding to the closing price of 28.92 yuan / share on April 25, 2022, and PE is 21, 18 and 16 times respectively. The company is the benchmark of the state-owned new media platform, with high-quality business and scarce assets. At present, the valuation level is at a historical low. We are optimistic about the rising space of the company’s share price and maintain the “overweight” rating.
Risk tips
Industry regulatory risks; Brain drain risk; New business expansion is less than expected risk.
