\u3000\u30 Beijing Telesound Electronics Co.Ltd(003004) 13 Mango Excellent Media Co.Ltd(300413) )
Integrate the foundation of N-generation structure and seek breakthroughs in innovative content. On May 18, 2022, mango TV and Hunan Satellite TV jointly held a new ecological content appreciation meeting of "integration and rebirth of upwind doubles", which opened the road of comprehensive integration of dual platforms between Hunan Satellite TV and mango TV.
1) marketing strategy: the company is the only platform in the market that truly realizes the connection of network resources. Combined with Xiaomang content e-commerce platform (Xiaomang APP), Fengmang pan information platform (Fengmang APP), offline live entertainment platform (mcity), the company has built a unique global marketing ecosystem to meet the demands of brand differentiation and realize full coverage from content field → e-mall → information field → entertainment field.
2) content side: Launch 15 integrated N-generation and 14 innovative variety shows. Continue to adhere to the spirit of "no innovation or death", focus on social hot spots, solve existing problems and seek breakthrough innovation. The film and television plays are divided into three theaters: monsoon theater, Golden Eagle solo broadcast and mango Juxian, with a total of 39. The series maintains the consistent high-quality logic of mango and increases self-control. The content types cover cities, love, workplace, history, etc.
High quality content is the cornerstone.
1) variety show: according to the announcement of the tasting meeting, the company has a total of 42 dual platform variety show teams, studios and teams. During the three years from 2019 to 2021, the annual output of key variety shows exceeded 30 (the standard of key variety shows is that the broadcast volume of a single episode of mango platform exceeds 5 million), which is leading in the industry and frequently popular. The content covers various categories such as mysteries, reality shows, talent shows and emotional observation. With the budget constantly tightened, Brands pursue higher certainty and have higher demand for head content;
2) in terms of film and television dramas: in 2021, the company's self-made proportion has reached 24.5%, with 29 self-made teams, an increase of 17 compared with 2020. Xinmang plans to cooperate with 34 film and television drama strategic studios, an increase of 4 compared with 2020. In terms of content types, in addition to maintaining the original advantages in love, youth and other types, it continues to expand to urban, ancient costume, suspense and other content types.
Profit forecast and Valuation: considering the macroeconomic pressure faced by the advertising industry and the uncertainty of the offline entertainment business, we lowered the company's performance expectations. It is estimated that the total operating revenue of Mango Excellent Media Co.Ltd(300413) 20222024 will be 17.409 billion (original 20.8 billion), 19.8 billion (original 24.8 billion) and 22.833 billion respectively, with a year-on-year increase of 13%, 14% and 15%, and the net profit attributable to the parent company will be 2.43 billion (original 2.988 billion), 2.812 billion (original 3.647 billion) and 3.028 billion respectively, The year-on-year growth was 15%, 16% and 8%. The large deviation between the profit growth forecast and revenue growth in 2024 was due to the impact of the company's tax preference. The current market value corresponds to the company's valuation of 28x, 24x and 22x respectively, and continues to maintain the "buy" rating.
Risk tips: 1) business risk: the online time of content is not up to expectations, the growth of advertising and paying members is not up to expectations, and the loss is increased due to business expenses such as Xiaomang e-commerce and offline live entertainment; 2) Policy risk, the risk of stricter content supervision, and the risk of artists affecting the value of content; 3) Forecast assumptions and risks related to data statistics.
