\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 13 Mango Excellent Media Co.Ltd(300413) )
Event: Mango Excellent Media Co.Ltd(300413) released the annual report of 2021 and the first quarterly report of 2022: the annual report shows that the company achieved a revenue of 15.356 billion yuan (year-on-year + 9.64%) and a net profit attributable to the parent company of 2.114 billion yuan (year-on-year + 6.66%) in 2021; In the first quarter of 2022, the company realized an operating revenue of 3.124 billion yuan (year-on-year - 22.08%), and a net profit attributable to the parent company of 507 million yuan (year-on-year - 34.39%).
Comments:
The core business driven by high-quality content performed steadily, and the number of effective members and advertising revenue reached a new high. In 2021, the company achieved a total operating revenue of 15.356 billion yuan (year-on-year + 9.64%), including 5.453 billion yuan of advertising revenue (year-on-year + 31.75%); The business income of members was 3.688 billion yuan (year-on-year + 13.3%), and the number of effective members at the end of the year reached 50.4 million; The business income of operators was 2.12 billion yuan (year-on-year + 27.17%); The revenue from content production business was 1.877 billion yuan (year-on-year - 32.1%), and the revenue from content e-commerce business was 2.157 billion yuan (year-on-year + 2.5%). High quality content drives the steady growth of the company's core main business mango TV Internet video business (advertising + member + operator business): in 2021, mango TV launched more than 40 self-made variety shows and 170 various film and television dramas, among which self-made content such as "sister 2 riding the wind and waves", "brother cutting through thorns" and "I'm good in another country" achieved good broadcasting results, driving the number of effective members and advertising revenue to a new high.
The rhythm of content broadcasting will affect the revenue of Q1 in 2022, and the heavyweight content of Q2 will be launched one after another, and the performance can be expected. In Q1 2022, the company achieved an operating revenue of 3.124 billion yuan (- 22.08%). In addition to the high base of Q1 in 21 years, the covid-19 epidemic repeatedly affected the content production progress, resulting in the delay of the scheduling of key variety shows. From Q2 of 2022, mango TV will launch heavy content one after another, among which "sound without rest" has been launched since April 24, with a cumulative broadcast volume of more than 100 million on the first day. The subsequent reserve contents include "sister 3 riding the wind and waves" and "brother 2 cutting through thorns", which is expected to drive the gradual recovery of the company's performance.
The gross profit margin increased steadily and the expense rate remained stable. In 2021, the company's gross profit margin was 35.5%. With the further increase of the revenue proportion of mango TV Internet video business and the optimization of related costs, it increased steadily. The company's sales rate, management rate and R & D rate were 16.1%, 4.5% and 1.8% respectively, which remained basically stable. The company has strong cost control ability. By the end of 2021, mango TV has 26 self-made entertainment teams, 29 film and television production teams and 34 "Xinmang plan" strategic studios. Relying on Mango ecology, it has formed standardized agreements in content production evaluation, operation, products, technology and other links, and continuously consolidated the moat of high-quality self-made content. With the further release of the company's self-made content ability, the gross profit margin is expected to increase steadily.
Actively layout new tracks and cultivate new growth poles. Xiaomang app is positioned as the "e-commerce platform for trendy domestic content". In 2021, the company achieved the linkage from program to app by creating "Xiaomang seed flower night", "Xiaomang new year goods Festival" and other heavy parties, and promoted the rapid development of Xiaomang app. The peak value of dau reached 1.26 million. At the same time, relying on high-quality contents such as "detective" and "escape from the chamber of secrets", the company has created a new brand m-city and laid out the offline live entertainment track. In addition, the company focuses on the innovation of content product form, actively explores cutting-edge technologies such as AR, VR and XR, further extends the industrial chain and cultivates new growth poles.
Profit forecast and rating: the company has a complete self-made system, which is expected to continue to output popular content and drive the continuous growth of membership and advertising revenue. At the same time, the company actively cultivates a new growth pole and deepens the industrial layout. We are firmly optimistic about the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.555 billion yuan, 3.195 billion yuan and 3.870 billion yuan respectively, corresponding to the existing share price PE of 22x, 18x and 15x respectively, which will be raised to the "strongly recommended" rating.
Risk tips: (1) the content scheduling is not as expected; (2) Advertising investment is less than expected; (3) Membership growth is less than expected; (4) The epidemic situation affects the production progress of the content.
