\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 13 Mango Excellent Media Co.Ltd(300413) )
Backed by Hunan Taiwan, it has a unique internet gene of state-owned enterprises. Mango TV, founded in 2014, is a new media platform under Hunan TV. In 2018, mango TV was injected into happy buy, a listed company through restructuring, and renamed Mango Excellent Media Co.Ltd(300413) .
High quality independent broadcasting + self-made high-quality content to realize small and beautiful self circulation. China’s long-term video industry is highly competitive. Iqiyi, Youku and Tencent video (hereinafter collectively referred to as aiyouteng) have invested a lot of resources to obtain content and users. Mango Excellent Media Co.Ltd(300413) as a state-owned Internet company, its capital strength is limited, but the company has embarked on a differentiated development path driven by high-quality independent broadcasting and high-quality content self-made under the background of network integration.
At present, the first level subsidiaries of Mango Excellent Media Co.Ltd(300413) include mango TV, Tianyu media and happy shopping. In 2021, the company agreed to transfer 100% equity of the original subsidiary Hunan happy Tongbao microfinance Co., Ltd., and adjusted three subsidiaries of mango film and television, mango entertainment and mango mutual entertainment into subsidiaries of mango TV, focusing on self-made monsoon theater, variety content innovation and live entertainment operation respectively. We believe that this adjustment is more conducive to the company focusing on the main business of core content and enhancing the ability of self-made content innovation and derivative development, Strengthen internal coordination.
From 2018 to 2021, the company’s revenue and profit have maintained steady growth. In 2021, the company achieved a total operating revenue of 15.356 billion yuan, a year-on-year increase of 9.64%; The net profit attributable to shareholders of listed companies was 2.114 billion yuan, with a year-on-year increase of 6.66%. The compound growth rates of revenue and profit in recent four years were 17% and 35% respectively. In 2021, the company’s core business mango TV Internet video business (advertising + member + operator business) achieved an operating revenue of RMB 11.261 billion, a year-on-year increase of 24.29%, and a gross profit of RMB 4.911 billion, a year-on-year increase of 33.2%.
We believe that in the long video track, high-quality content is the core of obtaining user payment and advertising investment. The company has strong self-control ability in variety and drama content. In recent years, through continuous investment in copyright resources, the company has continuously created popular funds in the industry. From 2019 to 2021, the company’s content investment was 5.643 billion yuan, 5.355 billion yuan and 5.319 billion yuan respectively (select the increased amount of film and television copyright in intangible assets in the current year), The amount of content input remained relatively stable, but the number of members increased from 10.75 million at the end of 2018 to 50.4 million at the end of 2021, and the content output efficiency was continuously improved.
Advertising is the main source of platform realization. In 2021, mango TV platform realized revenue of RMB 11.261 billion, including member revenue of RMB 3.688 billion (+ 13.3%) and advertising revenue of RMB 5.453 billion (+ 31.75%). Advertising has been the main source of platform realization for many years.
Mainly implantable advertising, with high advertising realization efficiency. Different from the effect advertising of short video, mango, as a content company, its advertising revenue mainly comes from implant advertising such as variety title. The brand exposure effect is good and does not affect the user experience. The advertising value of mango single Mau in 2021 is 26.7 yuan, and the realization efficiency is much higher than iqiyi video in the same industry.
In 2021, the company’s operator business achieved a revenue of 2.12 billion yuan, with a year-on-year increase of 27.17%. In recent years, the operator business has maintained steady growth.
China mobile capital is the second largest shareholder of the company and holds 7% of the company’s shares. In June 2019, the company signed the strategic cooperation agreement with Migu culture, a wholly-owned subsidiary of China Mobile, and the two sides established a good strategic partnership. Since 2021, the company and Migu culture have carried out trial operation cooperation and exploration of new models and new businesses in many business fields, and plans to sign the overall cooperation framework agreement between Migu culture and mango tv20212023. It is expected that the cooperation amount within the cooperation period agreed in the cooperation framework agreement will not be less than RMB 3.5 billion. We believe that in the future, the two sides will carry out in-depth cooperation in large screen, 5g innovation, equity, derivatives and other businesses, joint promotion and joint expansion, so as to strengthen the complementarity and synergy of resources and advantages between the two sides.
22q1 company achieved an operating revenue of 3.124 billion yuan, a year-on-year decrease of 22.08%, and the net profit attributable to shareholders of listed companies was 507 million yuan, a year-on-year decrease of 34.39%. The main reasons are as follows: first, the covid-19 epidemic repeatedly affected the content production progress, resulting in the delay of the scheduling of key variety shows of mango TV in the first quarter; Second, in the same period of last year, due to the broadcasting of key variety shows such as “sister 2 riding the wind and waves”, the performance base was relatively high. According to the company’s content production and broadcasting plan, the sound generation and yearning for life 6 have been broadcast successively in late April, and the key variety programs and film and television dramas such as “sister 3 riding the wind and waves” will be launched in 22q2. We believe that with the launch of key content, the company is expected to usher in a performance inflection point in the second quarter.
We believe that the development of Mango Excellent Media Co.Ltd(300413) stems from the company’s in-depth understanding of the content industry. High quality variety and drama content is the key to the growth of platform users and traffic, and it is also the basis for derivative realization represented by “Xiaomang e-commerce” and “script killing”. Therefore, this paper will analyze the growth driving force and future development space of Mango Excellent Media Co.Ltd(300413) from the two dimensions of “content construction” and “content realization”.
Continue the high-quality variety gene of Hunan Taiwan, continue to explore diversified variety types, and constantly launch a series of popular models. Mango TV was born in Hunan TV station. We believe that variety is the content category that the company is best at. In recent years, the company has firmly grasped the pulse and trend of the times, continued to explore various variety types such as suspense, new emotion and outdoor life, and created multiple S-class series innovative programs such as star detective, wife’s romantic travel and sister riding the wind and waves.
The proportion of self-made variety shows is high, and the broadcast volume contributes greatly. In the field of variety, the variety content broadcast by mango TV is not inferior in both quality and quantity. According to the statistics of Yunhe data, in 2021, the company launched a total of 52 solo variety shows, second only to Tencent video, but the number and volume of solo variety shows accounted for nearly 100%. From the perspective of broadcasting volume, the effective broadcasting volume of mango TV variety feature films in 2021 is 3 billion times. From the perspective of Mau, the company’s Mau is less than 1 / 2 of iqiyi, but it contributes 3 / 4 of its effective traffic in the variety category.
The series of variety shows give full play to the value of industrial production, and the subsequent investment promotion of popular variety shows outstanding performance. According to our statistics of cat’s eye data, among mango TV homemade variety shows in 2021, 7 of the top 10 are series variety shows and 3 are original variety shows. We believe that the content of variety shows depends more on content insight and platform brand investment attraction ability than dramas, which is easy to realize industrial production. Due to the formation of user groups and reputation, the series of variety shows have high certainty in investment attraction. Once the original variety shows become popular, they often have outstanding performance in the later investment attraction. According to the report of the data from the fight against soil, the number of advertising projects of integrated N-generation content still increased steadily from January to August 2021. We believe that this shows that under the macro background of repeated epidemic and increasing economic pressure, brand delivery is more stable and prefers cooperation with established programs.
In terms of original variety shows, the company’s “brother cutting through thorns” and “goodbye to your lover” have become popular models of the year.
Brother who cuts through thorns: Mango TV launched the blockbuster panoramic music competition and performance variety. Through the music competition and performance of more than 30 male guests, the program shows the brothers’ attitude and determination to be brave in challenges and hardships during the competition.
After the variety show was broadcast, it became another phenomenal variety created by mango, and a number of data performances broke historical records. According to the statistics of cat’s eye data, “brother through thorns”, as an original variety show, ranked first in the number of variety shows broadcast by the company in 2021.
Goodbye to love: as the first marriage documentary observation program of mango TV, “goodbye to love” tells an 18 day RV trip between three couples in emotional crisis. Under the saturated emotional observation variety market, the program selects plain guests with clear expression and sincere feelings, and uses a delicate and gentle narrative way to deeply discuss the divorce issue with the public, opening up a new field for Chinese variety shows.
At present, the sequel of these two variety shows is expected to be set for Q3 in 2022. In view of the broadcasting and word-of-mouth performance of the previous films, we expect the advertising and investment attraction in the second quarter to achieve better performance.
Through self-made + external customization, the monsoon theater has achieved preliminary results. Mango TV was born in Hunan Satellite TV. In the past, episodes were mainly sweet and spoiled. Since 2019, the company has continuously enriched the content of its own dramas through the mode of self-made platform + customized external strategy studio. Popular dramas such as “next stop is happiness” and “in the name of my family” launched in 2020 have effectively promoted the growth of platform members. In 2021, the company launched monsoon theater, focusing on innovative categories such as suspense. Monsoon drama “I’m good in a foreign land” has become an annual public praise popular.
The proportion of dramas is relatively low, and the categories are rich. The key to breaking the circle is to broadcast dramas alone. According to the statistics of Yunhe data, in 2021, the play volume of iqiyi, Tencent video and Youku accounted for more than 90%. Compared with the three major video platforms of youaiteng, mango TV plays only account for 62%. We believe that improving the content of high-quality dramas on the platform in the future, especially adding independent dramas with rich categories, is the key for mango to expand platform traffic and break the circle of paying users.
In terms of film and television dramas, mango TV launched 170 various film and television dramas in 2021, including 55 key film and television dramas and 84 micro short dramas of “damang plan”. At present, it has 29 film and television production teams and 34 “Xinmang plan” strategic studios. It has established a film and television drama Planning Committee to conduct overall management of drama planning, production and assessment, and realize the whole process system control of evaluation, project approval, production, broadcasting and replay. We believe that the company can effectively activate factor efficiency, improve process efficiency and better liberate the productivity of the content team by building an intelligent middle platform matrix
According to our statistics on the cat’s eye professional app, the top ten episodes of mango in 2021, in addition to the traditional sweet pet and love categories, new episodes such as family, education, espionage and suspense have increased, and the types of traditional episodes have further diversified.
Monsoon Theater: Mango monsoon theater is China’s first network linked weekly drama theater jointly built by Hunan Satellite TV and mango TV. The male oriented and anti poaching drama “wolf Hunter” was launched in May 2021. Douban scored 7.3 points, and Douban scored 8.1 points for “I’m good in a foreign land” broadcast in the summer, becoming an annual word-of-mouth blockbuster. We believe that monsoon theater is a huge content innovation for mango: 1) it marks the gradual expansion of the company’s content products from the user group dominated by young women, and the broadcasting of new types of dramas such as wolf hunter has driven the increase in the proportion of male users of the company. 2) We believe that the mutual drainage of stations and networks brings two-way cohesion to the brand volume, which is conducive to improving the effect of advertising and investment promotion.
In 2022, the company has a rich reserve of new dramas, and key projects include the choice of wife (monsoon theater drama, which is expected to be broadcast in May), Zhang Weiguo’s summer, youth school 2, etc., as well as the key project of the General Administration, the long river in the world. We estimate that the company’s content expenditure in 2022 is expected to be 7-8 billion yuan. In addition to variety shows, most of them focus on the production of film and television dramas. We believe that the company’s dramas adopt the business model of self-made + external cooperation. Traditional dramas can effectively control the cost side of content production through accurate user positioning and efficient aggregation of core production factors. Monsoon theater can set higher standards, mobilize wider cooperation and improve the production quality, And the types are more diverse, which is expected to fully drive the company’s users to break the circle.
Advertising is a barometer of macro-economy. Affected by the epidemic, the number of advertisers of variety brands decreased to 1376 and 744 brands lost in 2021. Compared with 2020, the number of variety shows with cooperation between the two brands has also decreased by 2. Although the epidemic has a certain pressure on the consumer market and the advertising of brand owners, we believe that the company has more head variety products, and the proportion of series variety shows is high (7 of the top ten variety shows in 2020 are series variety shows), which still has a certain guarantee for the exposure of brand owners, and the company’s advertising is still expected to achieve steady growth in 2022, In April, the company launched the new innovative variety “sound living”, which was sponsored by 9 brand resources in the first quarter, with outstanding commercialization ability. The blockbuster variety “sister 3 riding the wind and waves” that will be launched in May is still expected to maintain a high program popularity and bring advertising revenue growth to the company in the second and third quarters.
According to the disclosure of mango TV’s official microblog, the company will adjust the price of mango tvpc mobile film and television members and comprehensively upgrade the membership equity matrix from 0:00 on January 2, 2022. Prior to this, mango TV member users who have not cancelled their subscription for consecutive months / Seasons / years will enjoy the service of maintaining the original price for one year. We believe that the successive price increases of iqiyi and Tencent video members have not had a significant negative impact on the number of members, which has verified the feasibility of the price increase of long video members to a certain extent. In the future, with the promotion of the cost reduction and efficiency increase strategy of Internet platform, the membership fee of Chinese video platform may enter the upper stage.
Content e-commerce: the company launched Xiaomang e-commerce app to locate the trendy domestic content e-commerce platform. By creating “Xiaomang Flower Night”, “Xiaomang new year goods Festival” and other heavy parties, users can realize the linkage from program to app. In 2021, the daily peak of Xiaomang app will reach 1.26 million, and the revenue will reach 250 million yuan. At present, Xiaomang e-commerce has completed a new round of capital increase and share expansion initiated by the major shareholder mango media, and the company’s indirect shareholding in Xiaomang e-commerce has been reduced from 100% to 66.67%. In the future, Xiaomang e-commerce will continue to be optimistic about the business closed loop of “content + Video + e-commerce”.
Ty-m is expected to accelerate the opening of a new entity and offline entertainment company in Changsha, relying on the speed of ci-m’s online and offline entertainment companies.
VR production and broadcasting, digital man and other new technologies: in 2021, the company independently developed the “Guangguang” cloud production and broadcasting platform, successfully applied 5g and VR production and broadcasting technology in brother cutting through thorns, and created the most complex new technology application of the long video variety platform. The company has successively launched a series of innovative achievements including virtual host and interactive video platform, and will continue to focus on cutting-edge technology applications such as AR, VR and XR in the future.
Digital collection: Mango TV has tested the water of digital collection. We believe that mango TV has many well-known variety show and artist IP resources. In the future, after the industry policy is further clarified, the digital collection is expected to obtain a broader development space.
As the company’s business composition includes innovative businesses such as content production and copyright distribution, Internet long video media platform and content e-commerce, we valued the company by segment method.
1) as the Internet video industry is still in the investment period, iqiyi and other Chinese head companies are still in the state of loss, so we use the PS method to evaluate the new media channel, refer to iqiyi, Netflix, BiliBili and other streaming media platforms, and consider that the user portrait of mango new media is clear and young women have high payment ability. We expect the company to see the Internet in 2022
