\u3000\u30 Shenzhen Zhenye(Group)Co.Ltd(000006) 81 Visual China Group Co.Ltd(000681) )
Event: in 2021, the company realized an operating revenue of 657 million yuan, a year-on-year increase of 15.22%, and the net profit attributable to shareholders of the parent company was 153 million yuan, a year-on-year increase of 8.00%. In the first quarter of 2022, the company achieved an operating revenue of 155 million yuan, a year-on-year increase of 11.79%, and a net profit attributable to shareholders of listed companies of 305124 million yuan, a year-on-year decrease of 26.48%. The company's performance is slightly lower than market expectations.
The epidemic has brought short-term disturbance, and overseas income has decreased year-on-year. China has been significantly affected in 2022q1. In 2021, the overseas revenue was 338005 million yuan, a year-on-year decrease of 39.35%, mainly due to the impact of the epidemic and exchange rate changes on overseas sales. Considering the high gross profit margin of overseas income, the change of domestic and overseas income structure in 2021 led to the decline of gross profit margin in 2021. The gross profit margin of the company in 2021q4 was 39%, down 28.72pct year-on-year. Domestic business is affected by the repeated epidemic after 2022m3, especially in East China, but the company's revenue is mainly affected by media revenue and brand advertising budget. After the epidemic improves, the growth is expected to be significantly repaired.
The market share of small and medium-sized enterprises and long tail has increased, the head customers have maintained a stable pattern, and their contracts have been renewed to maintain a high level. In 2021, the number of contracted customers of the company's digital copyright trading platform continued to grow, and the number of direct contracted customers of the company exceeded 23000, with a year-on-year increase of more than 35%; The number of users reaching the long tail through the Internet platform continued to grow rapidly, nearly 2 million, a year-on-year increase of more than 40% over 2020. The revenue of Party and government and media institutions, enterprise customers, advertising, marketing and services and Internet platforms accounted for 37% / 28% / 21% / 14% respectively. Ka major customers continued to maintain high stickiness, and the renewal rate of long-term cooperative customers with annual sales of more than 100000 yuan continued to remain above 80%.
The investment in video and audio business was increased, and the industry dividend was obvious. The company has successively invested in China's leading video material trading platform optical factory creativity and love design. Through the layout of audio and video trading platform and creative tool platform, the company fully covers small and medium-sized enterprises and long tail market, so as to improve the share of high-quality copyright content in small and medium-sized enterprises and long tail market. 2021 optical factory creativity (vjshi. Com.) The average monthly number of independent visitors was nearly 3 million, the number of videos exceeded 3 million, and the annual sales exceeded 110 million, with a year-on-year increase of nearly 70%.
The "blockchain +" strategy has been initially implemented, and the to C business has achieved initial results. The company's digital art trading platform yuan vision was launched on December 26, 2021. By the end of the first quarter of 2022, it has established cooperation with more than 41 artists and copyright IP cooperation institutions, sold 126 original digital art works, and achieved a total sales of more than 10 million yuan. It is expected that China's app and overseas platforms will be launched.
Profit forecast and investment rating: considering the impact of the epidemic and overseas factors, we will reduce EPS from 0.33/0.38 yuan to 0.25/0.29 yuan in 2022 / 2023, and it is expected that EPS will be 0.34 yuan in 2024. The current share price corresponds to 48 / 41 / 35 times of PE in 20222024 respectively. We are optimistic about the company's long-term growth potential under the blockchain + strategy and maintain the "buy" rating.
Risk tips: the impact of the epidemic exceeds expectations, changes in digital collection policies, etc
