\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 70 Guangdong South New Media Co.Ltd(300770) )
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the company achieved a revenue of 1.409 billion yuan, a year-on-year increase of + 15.4%, and a net profit attributable to the parent company of 680 million yuan, a year-on-year increase of + 18.2%, deducting a net profit not attributable to the parent company of 625 million yuan, a year-on-year increase of + 17.7%. 22q1 company achieved a revenue of 388 million yuan, a year-on-year increase of + 19.3%, and a net profit attributable to the parent company of 172 million yuan, a year-on-year increase of + 6.1%, deducting a net profit not attributable to the parent company of 165 million yuan, a year-on-year increase of + 5.8%, which was in the median range of the previous performance forecast. The 2021y profit distribution plan of the company plans to distribute cash dividends of 12 yuan (including tax) for every 10 shares, with a total cash dividend of 275 million yuan.
IPTV & Ott business grew steadily, and the gross profit margin of Internet audio-visual business increased. (1) IPTV basic business: in the 21st year, the revenue increased by 4.77% to 735 million yuan, accounting for 52.14% of the revenue, and the gross profit margin remained basically stable at 60.61%. At the end of the year, there were 19.58 million effective users of IPTV basic services, with a year-on-year increase of 6.41%. The company’s penetration rate of fixed broadband access users in Guangdong Province was 45.77%, corresponding to the ARPU value of 37.52 yuan / year. It is expected that the increase of penetration rate will drive the growth in the future. (2) Internet audio-visual business: revenue increased by 18.75% to 537 million yuan, accounting for + 1.06 PCT to 38.12% of revenue and + 1.5 PCT to 56.96% of gross profit margin. Among them, IPTV value-added business revenue increased by 17.33% to 346 million yuan. The company strengthened the member operation and related content operation of “Xiyue TV” during the year. It is expected that the number of members and ARPU value will drive the performance growth. Internet TV business revenue + 21.39% to 191 million yuan. By the end of the 21st century, the number of effective users of cloud audition app in China had increased by + 17% to 246 million, of which the core product cloud audio-visual aurora is expected to grow steadily, and the effective users of cloud audio-visual small TV (cooperation with station B) increased by + 50%.
Accelerate the layout of new businesses and build a new audio-visual head platform for the Internet in an all-round way. In the 21st year, the revenue of the company’s content copyright business was + 116.6% to 118 million yuan, of which the business of special networks outside the province covered more than 30 million households, and continued to expand value-added services such as film, television and music; In terms of content production, 4K food documentaries like the taste of Guangdong and super ingredients were launched. The business operation revenue of new business is 1.41 million yuan (310000 yuan in the same period last year). The team was established in early 2021 to mainly carry out advertising business, which is expected to contribute to future performance increment. In 2021, while deeply cultivating its main business, the company tried to expand new business, based on content and users, combined with data and technical advantages, explore new businesses such as advertising and content, and create a diversified new growth point.
Driven by the content copyright business, the revenue of 22q1 increased year-on-year. The revenue of 22q1 company increased by + 19.3% to 388 million yuan, an increase of (+ 10.9%) compared with 21q1. It is expected that the growth will be driven by the content copyright business. 22q1 gross profit margin was 51.4%, with a year-on-year decrease of 4.1pct, which was mainly due to the increase of content cost confirmation. The ratio of sales / management / R & D expenses of 22q1 company was 4.0% / 2.9% / 2.8% respectively, with a year-on-year increase of + 1.9pct / – 0.6pct / – 0.4pct. Increasing content Investment & the rise of publicity expenses led to a short-term decline in the net interest rate. The net interest rate of 22q1 company was 44.2%, with a year-on-year increase of -5.5pct. 22q1 company achieved operating cash flow of 347 million yuan, a year-on-year decrease of 2.7%.
Profit forecast and investment suggestions: it is estimated that the company will achieve revenue of RMB 1.604/1.761/1.890 billion in 22-24 years, an increase of 13.9% / 9.8% / 7.4% at the same time; The net profit attributable to the parent company was 766 / 839 / 900 million yuan, an increase of 12.7% / 9.5% / 7.3% at the same time. The current stock price corresponds to pe10x / 9x / 8x, maintaining the rating of “overweight”.
Risk warning: policy supervision risk; Risk of recurrent outbreaks; IPTV and Internet TV licensing changes
