\u3000\u3 Shengda Resources Co.Ltd(000603) 466 Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) )
Key investment points
In 2021, the company achieved an operating revenue of 2.94 billion yuan, an increase of 30.30% year-on-year; The net profit attributable to the shareholders of the listed company was 439 million yuan, a year-on-year increase of 28.12%. Due to the increasing demand of Party construction, government and enterprises for exhibition and cultural space, the operating revenue of the company's cultural and brand digital experience space business increased from 776 million yuan in 2020 to 1.719 billion yuan in 2021, with a significant year-on-year increase of 121.51%. During the reporting period, the company signed 3.597 billion yuan of new orders, an increase of 17.20% over the same period last year, including 2.309 billion yuan of new orders for cultural and brand digital experience space, a year-on-year increase of 12.89%, and 645556 million yuan of new orders for digital products and services, a year-on-year increase of 135.21%. As of December 31, 2021, the balance of orders on hand of the company was 5.351 billion yuan, with abundant orders on hand and high certainty of future performance.
The company actively uses relevant elements of meta universe to improve the effect of offline and online display. With the government actively promoting the digital economy, the company, as a leader in the field of exhibition, will usher in greater market space. For the online exhibition, the rich details and rendering effects will make the online exhibition effect slowly approach the offline and even gradually surpass the offline. Due to the restrictions of the epidemic on the offline exhibition, the form of online exhibition will be more and more popular and recognized, and the form of online exhibition also expands the potential market space. In 2021, the company took the lead in reaching an ecological co construction partnership with China's meta universe platform, and took the "urban meta universe" as the strategic development opportunity to expand the business of meta universe 3D virtual architecture design, rendering development and digital space operation. In the NFT digital collection section, the company launched Shanghai Fengyuzhu Culture Technology Co.Ltd(603466) yuan universe Digital Art Museum, relying on the company's resources in digital art, cultural and Expo collections, traditional culture IP and other aspects, combined with the offline commercial cultural and creative exhibitions independently incubated or introduced by the lightning Institute and cultural and creative Institute, to create an online and offline interactive immersive exhibition experience, and open up the business path from 3D design, content development and operation to the casting and sale of digital collections. In the virtual scene and digital virtual human sector, Zhejiang fengyuzhou, a wholly-owned subsidiary, joined hands with Xinhua news agency to launch the national "two sessions" meta universe reporting activity, and created a holographic virtual stage for Hunan Satellite TV and a digital virtual anchor for Anhui Satellite TV.
Profit forecast and investment rating: affected by the epidemic, the company's 2022q1 revenue and profit were lower than expected. We lowered our previous profit forecast and expected to achieve EPS of 1.07 (- 0.34) / 1.47 (- 0.18) yuan in 20222023, adding an EPS of 1.77 yuan in 2024, corresponding to pe15 / 11 / 9x in 20222024. As the leader of digital display, for the development of online exhibition, the company not only has the architectural data of many urban pavilions and museums, but also reserves the rendering technology team, but also invests in relevant technology companies. It is optimistic about the second growth curve brought by the expansion of the company from offline display to online display and later online operation and maintenance, and maintains the "buy" rating.
Risk warning: order delivery delay risk; The risk of intensified industry competition; Risk of impact of epidemic situation on main business.
