\u3000\u3 Shengda Resources Co.Ltd(000603) 825 Hylink Digital Solution Co.Ltd(603825) )
Event: the company released 2021 annual report & 2022 quarterly report. The company achieved an operating revenue of 13.214 billion yuan in 2021, with a year-on-year increase of 44.51%; The net profit attributable to the parent company was RMB 229 million, a year-on-year increase of 9.28%; Net profit deducted from non parent company was 239 million yuan, with a year-on-year increase of 8.84%. 22q1 company achieved an operating revenue of 2.685 billion yuan, a year-on-year increase of 11.92%, and the net profit attributable to the parent company was 193427 million yuan, a year-on-year increase of 28.75%.
The main business grew steadily, and the new retail business became a new bright spot. 1) Traditional business: brand marketing achieved revenue of RMB 11.834 billion, a year-on-year increase of 39.29%, gross profit margin of 13.26% (a year-on-year decrease of 0.15pct), and brand operation achieved revenue of RMB 173 million, a year-on-year decrease of 39.17%. The steady growth of traditional business is mainly due to the success of digital transformation, the expansion of customers and the increase of cooperation volume; 2) New retail: the company achieved a revenue of 1.184 billion yuan, a year-on-year increase of 283.93% and a gross profit margin of 4.78% (a year-on-year increase of 1.82pct). The new retail business is the key driving force of the company in 2021, covering new automobile retail and duty-free business. Relying on rich automobile customer resources, the company achieved rapid growth in sub business performance, opened up the automobile full link service system for BAIC bj90 model, and cooperated with Hainan tourism investment to arrange online duty-free business, At the end of 2021, the offline stores cooperated with Laox were opened. It is expected that the tax-free business will begin to contribute profits to the company in 2022.
The company's customer structure is mainly large customers, and actively expand high-quality customers in high growth industries such as sports. The company actively adjusts the customer structure. In 2021, the top three customer segments are beauty daily chemical, automobile and 3C digital. The company eliminated customers with industrial or financial risks, consolidated and deepened the service relationship between Estee Lauder group, Feihe, SAIC GM Wuling and other major customers, and the volume of cooperation increased rapidly. At present, the company has about 100 medium and large customers, the cooperation amount has increased steadily, and it is less disturbed by external factors such as economy. As the exclusive provider of communication agency services for the 2022 Winter Olympic and Paralympic Games, the company took the opportunity to launch new marketing services for the sports industry, thereby deepening the cooperative relationship with Anta.
The company has arranged various tracks of yuanuniverse and explored the possibility of diversification of "yuanuniverse + marketing". From the perspective of IP, the company independently created the virtual human amiee and jointly launched the virtual image with stars; From the perspective of application scenarios, the company has signed strategic cooperation with the Palace Museum and the Qinshihuang Mausoleum Museum, and its new picture cultural creation has been authorized to issue the cultural and creative digital collection of the Qinling Mausoleum Museum; From the perspective of transaction, the company and Industrial And Commercial Bank Of China Limited(601398) signed the "digital RMB closed experimental framework agreement", integrating users, markets, channels, data, technology and other resources of both sides, and jointly accelerating the scene construction and user promotion, so as to provide strong support for the transaction links in the process of building the business scene of the yuan universe in the future.
Profit forecast: we predict that the company's revenue from 2022 to 2024 will be RMB 13.547/16.191/19.125 billion, with a year-on-year increase of 2.5% / 19.5% / 18.1%, and the net profit attributable to the parent company will be RMB 322 / 4.34/479 million, with a year-on-year increase of 40.7% / 34.7% / 10.2%, maintaining the "buy" rating.
Risk tips: industry competition intensifies, the recovery of epidemic situation is less than expected, and the expansion of new business is less than expected
