\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 13 Mango Excellent Media Co.Ltd(300413) )
Event: Mango Excellent Media Co.Ltd(300413) published the annual report of 2021 and the first quarter report of 2022 on April 24. The company achieved an operating revenue of 15.356 billion yuan in 2021, a year-on-year increase of 9.64%; The net profit attributable to the parent company was 2.114 billion yuan, a year-on-year increase of 6.66%; The non net profit deducted was 2.059 billion yuan, a year-on-year increase of 11.57%; The net cash flow from operating activities was 562 million yuan, a year-on-year decrease of 3.30%; The weighted average return on net assets was 16.25%. In 2022q1, the company achieved an operating revenue of 3.124 billion yuan, a year-on-year decrease of 22.08%; The net profit attributable to the parent company was 507 million yuan, a year-on-year decrease of 34.39%; The non net profit deducted was 474 million yuan, a year-on-year decrease of 38.49%; The net cash flow from operating activities was -733 million yuan, a year-on-year decrease of 271.87%; The weighted average return on net assets is 2.95%.
Core business: the entertainment industry has made remarkable achievements in attracting investment, the advertising revenue has increased brightly, and the growth of member income has slowed down. In 2021, the revenue of advertising business exceeded 5 billion yuan for the first time, reaching 5.453 billion yuan, a year-on-year increase of 31.75%, accounting for more than 36% of the company's total revenue, an increase of 6pct over the same period last year. At the end of 2021, the number of effective members reached 50.4 million, a year-on-year increase of 39.5%; Member income increased by 13.3% year-on-year, significantly slower than last year.
Content production business: the scale of revenue is reduced, and the gross profit margin has decreased for four consecutive years. The annual revenue was 1.877 billion yuan, a year-on-year decrease of 32.10%. In addition, in the depressed film and television industry environment, the company's gross profit margin continued to decline. In 2018, 2019, 2020 and 2021, the gross profit margin of the company's content production and operation business was 40%, 27%, 22% and 17% respectively.
Innovative business growth: layout Xiaomang e-commerce and offline business, extend the industrial chain and cultivate new growth poles. In 2021, the company's content e-commerce business realized a revenue of 2.157 billion yuan, a year-on-year increase of 2.50%, and the daily peak of Xiaomang app reached 1.26 million.
Outlook for 2022: Q1's sluggish performance is in line with expectations, and the subsequent variety show launch is expected to repair the performance.
We expect the company to achieve revenue of 18.2 billion yuan / 21.29 billion yuan / 24.96 billion yuan in 2022 / 2023 / 2024, corresponding to net profit attributable to parent company of 2.47 billion yuan / 2.89 billion yuan / 3.43 billion yuan, corresponding to EPS of 1.3 yuan / 1.5 yuan / 1.8 yuan. Based on the closing price on April 25, PE is 21 / 18 times / 15 times, maintaining the "buy" rating.
Risk tips: macro environmental factors; Regulatory policy factors; Project promotion factors; Content infringement factors
