\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 70 Guangdong South New Media Co.Ltd(300770) )
Event:
The company issued the 2021 annual report and the first quarterly report of 2022.
Comments:
The performance maintained steady growth, and the revenue increased quarter by quarter in the past 21 years
In 2021, the company achieved a revenue of 1.409 billion, a year-on-year increase of 15.43%; The net profit attributable to the parent company was 680 million, with a year-on-year increase of 18.23%; Net profit deducted from non parent company was 625 million, with a year-on-year increase of 17.72%. The gross profit margin was 54.29%, with a year-on-year increase of -3.01pct. The ratio of sales / management / R & D expenses was 3.56% / 1.48% / 3.29%, with a year-on-year increase of -0.55 / – 2.33 / + 0.15pct. In the fourth quarter, the revenue reached 394 million, with a year-on-year increase of 25.94%, and the quarterly revenue increased gradually. The net profit attributable to the parent company was 135 million, with a year-on-year increase of 12.72%. In the first quarter of 2022, the company achieved a revenue of 388 million yuan, a year-on-year increase of 19.26%; The net profit attributable to the parent company was 7.2 billion yuan, a year-on-year increase of 106.6%; The net profit deducted from non parent company was 165 million yuan, with a year-on-year increase of 5.77%, which was in the middle of the performance forecast.
IPTV basic business has been steadily improved, and Ott business has driven growth
By business, the revenue of IPTV industry was 735 million, a year-on-year increase of 4.77%. By the end of 2021, there were 19.58 million effective users, a year-on-year increase of 6.41%, and the penetration rate of fixed broadband access users in Guangdong reached 45.77%. The revenue of Internet audio-visual business was 537 million, a year-on-year increase of 18.75%. Among them, the company deepened the operation of “Xiyue TV” large membership system, increased the introduction of header content, and promoted the double increase of member payment rate and ARPU. The value-added service revenue of Guangdong IPTV was 346 million, a year-on-year increase of 17.33%. The revenue of Internet TV business was 193 million, a year-on-year increase of 21.39%. The national effective users of cloud audio-visual series app reached 246 million, with a year-on-year increase of 17%, and the year-on-year increase of cloud audio-visual small TV users was close to 50%. The intelligent terminal business actively built a closed-loop operation of “content + platform + terminal”, and the number of terminals reached 13.56 million, a year-on-year increase of 35%.
New breakthroughs have been made in the content copyright business, and diversified realizations have been explored in the operation of new media
In 2021, the company’s content copyright business realized revenue of 118 million, an increase of 116.6% year-on-year. Complete the industrial chain layout from integrated broadcast control to production, investment, integration and distribution, and build a boutique content library represented by the national music ceremony. At the same time, actively explore new media business operations, build an algorithm advertising platform, cooperate with Konka Group, real estate group and other customers and short video platforms, and explore diversified brand marketing models. The business operation business realized a revenue of 1.4103 million yuan, a year-on-year increase of 361%..
Investment advice and profit forecast
We expect the company to achieve revenue of RMB 1.608/1.832/2.057 billion, net profit attributable to the parent company of RMB 741/8.26/911 million and EPS 3.5 billion respectively from 2022 to 202421 / 3.57/3.94 yuan, corresponding to pe10 / 9 / 8x, maintaining the “overweight” rating.
Risk tips
The business expansion outside the province is less than expected, the risk of partner change and the risk of operator IPTV policy adjustment.
