\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 81 Visual China Group Co.Ltd(000681) )
Event:
The company issued the 2021 annual report and the first quarterly report of 2022.
Comments:
Affected by the epidemic outside China, the growth rate of performance slowed down in 21 years
In 2021, the company achieved an operating revenue of 657 million yuan, a year-on-year increase of 15.22%; The net profit attributable to the parent company was 153 million yuan, a year-on-year increase of 8%; Net profit deducted from non parent company was 125 million yuan, with a year-on-year increase of 3.59%. The gross profit margin was 55.8%, with a year-on-year decrease of 7.72 PCT, mainly due to the change of business income structure, in which the overseas business was greatly affected and the income decreased. The ratio of sales / management / R & D expenses was 14.29% / 15.95% / 9.83% respectively, with a year-on-year increase of + 2.42 / - 1.46 / + 1.03pct. The increase of sales expense rate is mainly due to the expansion of personnel and the increase of marketing. Q4 achieved an operating revenue of 133 million yuan in a single quarter, with a year-on-year increase of 3.46%; The net profit attributable to the parent company was 2.0179 million yuan, a year-on-year decrease of 89.61%. The performance fluctuation is mainly affected by the epidemic situation outside China. 22q1, the company achieved an operating revenue of 155 million yuan, a year-on-year increase of 11.79%; The net profit attributable to the parent company was 305124 million yuan, a year-on-year decrease of 26.48%; Deduct the net profit not attributable to the parent company of RMB 303861 million, a year-on-year decrease of 15.82%.
Customers have maintained rapid growth, and the "blockchain +" TOC business has achieved initial results
In terms of digital copyright trading business, the company consolidated the service depth and breadth of large and medium-sized KA customers through the "vision +" strategy, and continued to expand the market share of medium and long tail. In 2021, the company directly signed more than 23000 customers, with a year-on-year increase of more than 35%. Among them, the renewal rate of long-term association customers with annual sales of more than 100000 continues to remain above 80%. For the long tail market, the company opened its strategic cooperation with the Internet platform, reaching more than 2 million long tail users, a year-on-year increase of more than 40% over 2020. The audio and video business achieved rapid growth, and the sales increased by nearly 150% year-on-year. The number of independent video visitors exceeded 3 billion, with an average annual growth of nearly 3.0 million. At the same time, the company launched the "blockchain +" strategy and launched the meta vision platform based on alliance chain on December 26. By the end of the first quarter of 22, the platform had established cooperation with more than 41 artists and copyright IP institutions, sold 126 original digital works of art, and the cumulative sales exceeded 10 million.
Investment advice and profit forecast
The company's leading position in China library is stable, and the launch of audio and video materials and meta vision platform is expected to drive the business to further extend to the C-end and provide increment. The net profit of the parent company is expected to be rmb394.4 billion in 2020 and rmb284.2 billion in 2020, respectively. Maintain the "overweight" rating.
Risk tips
Policy and regulatory risks, the legalization process is less than expected, and the performance recovery is less than expected.
