\u3000\u30 Zhongyan Technology Co.Ltd(003001) 44 Songcheng Performance Development Co.Ltd(300144) )
Core view
Event: the company released the annual report of 2021 and the first quarterly report of 2022. The company turned losses into profits in 2021, with an operating revenue of 1.185 billion yuan in 2021, a year-on-year increase of 31.27%; In 2021, the net profit attributable to the parent company was 315 million yuan, and the loss in the same period in 2020 was 1.752 billion yuan. Q1 achieved an income of 85.304 million yuan in 2022, compared with 306 million yuan in the same period in 2021, a year-on-year decrease of 72.16%; In 2022, the net profit attributable to the parent company in Q1 lost 38.586 million yuan, and the net profit attributable to the parent company in the same period of 2021 was 132 million yuan, a year-on-year decrease of 129.15%.
During the epidemic recurrence period from 2020 to 2021, Songcheng Performance Development Co.Ltd(300144) successfully launched new projects in Xi'an, Shanghai and Zhengzhou. The theater expansion of existing projects and the continuous and timely landing of new projects have been superimposed. Songcheng has greatly upgraded its hardware facilities during the epidemic, laying a solid foundation for the rebound after the epidemic.
The company has gradually promoted the concepts of "performing arts kingdom", "urban performing arts" and "differentiation strategy". During the epidemic period, the company planned and promoted the "performing arts kingdom" model for the Hangzhou project, comprehensively upgraded the hardware and content, and will gradually be applied to some remote Songcheng projects in the future; The "urban performance" mode of Shanghai World Expo project was also launched in 2021. Song city was launched in the first tier cities for the first time, integrating the performance content into the city perfectly. The implementation of this mode will lay a solid foundation for Songcheng project to continue to enter the first and second tier cities in the future; Among the new projects under construction, the scale and development space of Zhuhai performing arts valley have great potential.
It is estimated that from 2022 to 2024, the revenue will reach 988 / 2047 / 3380 million yuan respectively, with a corresponding year-on-year change of - 16.7% / 107.3% / 65.1%. The net profit attributable to the parent company is expected to be RMB 220 / 807 / 1421 million, with a year-on-year change of - 30.1% / 266.4% / 76.0%. It is estimated that the EPS from 2022 to 2024 will be 0.08/0.31/0.54 yuan, corresponding to pe163 / 44 / 25 times, with a "buy" rating.
Risk warning: the epidemic situation is repeated, the recovery and opening of existing projects are less than expected, and the opening process of new projects is less than expected.
