\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 70 Guangdong South New Media Co.Ltd(300770) )
Event: on May 10, 2022, we communicated with non trading investors of Cinda securities strategy meeting organized by Guangdong South New Media Co.Ltd(300770) ( Guangdong South New Media Co.Ltd(300770) . SZ), and the company shared the relevant information of its main business.
Comments:
In 2021, the company achieved a revenue of 1.409 billion yuan, a year-on-year increase of 15.43%, a net profit attributable to the parent company of 680 million yuan, a year-on-year increase of 18.23%, and a net profit not attributable to the parent company of 625 million yuan, a year-on-year increase of 17.72%. In 22q1, the company achieved a revenue of 388 million yuan, a year-on-year increase of 19.26%, a net profit attributable to the parent of 172 million yuan, a year-on-year increase of 6.06%, and a net profit not attributable to the parent of 165 million yuan, a year-on-year increase of 5.77%.
The gross profit margin of the company was 54.3% in 2021, with a year-on-year decrease of 3.0pct; The net interest rate increased by 48.0t% year-on-year. In 2022q1, the gross profit margin of the company was 51.37%, with a year-on-year decrease of 4.14pct; 22q1’s net profit margin was 44.2%, down 5.5pct year-on-year, mainly due to the company’s integration of content copyright resources and construction of high-quality content resource library through integration, investment, self-made and other means. The company expects that the revenue in 2022 will be RMB 1.55 ~ 1.691 billion, with a year-on-year increase of 10% ~ 20%, deducting the net profit not attributable to the parent company of RMB 688 ~ 751 million, with a year-on-year increase of 10% ~ 20%.
IPTV and Ott business: the company’s IPTV basic business revenue in 2021 was 735 million yuan, with a year-on-year increase of 4.8%. By the end of December 2021, the company’s IPTV basic business has reached 19.58 million effective users, with a year-on-year increase of 6.4%. In March 2022, the national IPTV user penetration rate was 65.3%, and the fixed broadband access user penetration rate in Guangdong Province was 45.8%. Therefore, the company’s IPTV business penetration rate still has great room for growth. In addition, in 2021, the company’s IPTV value-added service revenue was 346 million yuan, a year-on-year increase of 17.33%. IPTV basic business continues to maintain stable and good cooperation with the three major operators in Guangdong. The company continues to strengthen content and product operation, expand the influence of enterprise TV brand through brand investment such as children’s hip-hop dance and cool treasure at home, and promote the stable growth of user scale and income. In 2021, the company’s Internet TV business revenue was 191 million yuan, a year-on-year increase of 21.39%. The national effective users of cloud audio-visual series app were 246 million, a year-on-year increase of 17%, of which the effective users of cloud audio-visual small TV increased by nearly 50% year-on-year; In addition, as of May this year, the number of effective intelligent terminals served by the company reached 13.56 million, a year-on-year increase of 35%.
Content copyright business: the company’s revenue from content copyright business in 2021 was 118 million yuan, a year-on-year increase of 116.6%. The company continues to increase the investment in content copyright business, adheres to the differentiated high-quality content route, invests in the production of high-quality content projects such as the fourth quarter of national music ceremony and the second quarter of Ji Jing Si Zuo, completes the layout from integrated broadcasting control to the whole industrial chain, actively constructs digital distribution channels for the national market, integrates content copyright resources through integration, investment and self-made, and cooperates with Tencent music Huya and others reached cooperation, continued to expand innovative value-added services such as music and e-sports, and explored a new multi-dimensional realization model. In terms of vertical content, focus on children, e-sports, film and television, integrate potential content teams, form a head IP matrix, and realize the diversified and high-quality development of content; In terms of cash realization mode, improve the “member + advertising” system through its own 266 million users, strengthen national channel distribution, and increase revenue through extensive cross-border cooperation such as derivatives and IP authorization.
Invest in new businesses and cultivate new growth points: in 2021, the company vigorously expanded the diversified industrial chain layout of the video industry, increased upstream and downstream investment in the industrial chain, and created a “business + investment” model. It invested in Huanyu trust Beijing Technology Co., Ltd., which focuses on the field of digital copyright, Beijing zhongkewenge Technology Co., Ltd., which is mainly engaged in big data business Shenzhen Yifang Network Technology Co., Ltd., which is mainly engaged in Internet TV platform. Deeply participate in copyright protection, big data, ultra-high definition advertising and other businesses, improve capital operation efficiency, expand the company’s new business and cultivate new growth points.
Risk warning: risk of policy regulatory change; The effect of copyright investment is less than expected; The unit price of IPTV users decreased; Ott expansion is not as expected.
