\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 633 Zhejiang Daily Digital Culture Group Co.Ltd(600633) )
Event: the company released the 2021 annual report and the first quarterly report of 2022. In 2021, the annual operating revenue was 3.06 billion yuan, a year-on-year decrease of 13.4%; The net profit attributable to the parent company was 520 million yuan, a year-on-year increase of 0.98%; The net profit attributable to the parent company after deduction was 300 million yuan, a year-on-year decrease of 46.7%. In 2022, Q1 achieved an operating revenue of 1.04 billion yuan, a year-on-year increase of 37.5%; The net profit attributable to the parent company was 50 million yuan, a year-on-year decrease of 69.5%; The net profit attributable to the parent company after deduction was 130 million yuan, a year-on-year decrease of 15.6%.
The performance of the main business is stable, and the decline in profit is an impairment factor. The net profit of bianfeng’s network company in 2021 was RMB 0.6 billion; Fuchun cloud’s net profit was 81.67 million yuan, doubling year-on-year. The company has accrued 267 million impairment under the parent company standard for luodun and other enterprises, which has dragged down the performance of the profit side, but this factor has no impact on the long-term development of the company; The company recognized the non recurring fair value income of 123 million yuan under the parent standard. If excluding the impact of impairment and changes in fair value, the non operating profit deducted by the parent company in 2021 was about 660 million yuan, showing a stable performance.
Deep cultivation of Internet Leisure Games has made a certain breakthrough in the overseas market. In 2021, the company’s wingers (game + social + advertising) achieved a revenue of 2.25 billion yuan, accounting for 73.4% of the total revenue; At the same time, winger network was selected as the “top 100 enterprises with comprehensive strength of China’s Internet in 2021”, ranking 62nd. Wingers continue to cultivate leisure games, realize game iteration and prolong the game life cycle through function design and play optimization; And continue to explore the overseas market. The overseas users of the overseas brand bFun under winger have exceeded 100 million, making a certain breakthrough.
Fuchun cloud gradually improved its strategic layout and promoted steady growth in performance. In terms of digital technology, the company focuses on data center services and deepens the strategic layout of Fuchun cloud technology. By the end of 2021, the construction of phase I of Beijing Yiyuan Sijiqing data center project is coming to an end, and the marketing work is progressing steadily; Hangzhou Fuchun cloud data center has basically completed the construction and investment attraction; Hangzhou dajiangdong project has completed the overall preliminary planning. In 2021, the company’s technical information service business achieved a revenue of 770 million yuan, accounting for 25.2% of the total revenue. Among them, Fuchun cloud technology achieved a revenue of 320 million yuan and a profit of 80 million yuan. It is expected that the profitability of the company will continue to improve in the future.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 0.48 yuan, 0.54 yuan and 0.59 yuan respectively, and the corresponding PE will be 12 times, 11 times and 10 times respectively. We believe that the company has fully completed the transformation from traditional media to Internet company, and will focus on the layout of digital culture and digital technology industry in the next stage. In terms of performance, the leisure and entertainment sector led by the winger ranks the top in China, and actively goes to sea to create a new growth pole; The construction of Fuchun cloud data center has been continuously promoted, with strong performance certainty. In terms of valuation, the company’s Internet positioning switching and meta universe business layout may bring a certain valuation premium to the company. In conclusion, we maintain the “buy” rating.
Risk warning: the risk of policy change; The risk of intensified market competition; The risk that the running water of Xinyou is less than expected.
