\u3000\u3000 Bluefocus Intelligent Communications Group Co.Ltd(300058) (300058)
Over the past 25 years, we have made continuous progress to become the world’s top ten marketing groups, focused on the new scene of technology empowerment and meta universe, and explored new growth curves. Bluefocus Intelligent Communications Group Co.Ltd(300058) was founded in 1996 and started with public relations business. After M & A and integration, it rapidly expanded its industrial territory and became a global marketing group. The chairman and actual controller of the company is Mr. Zhao Wenquan. Since 2011, the company has integrated marketing communication through M & a transformation, acquired DuoMeng Yidong in 15 years, established the leading position of mobile digital advertising, paid attention to the layout of data and technology business, released blue label online in 20 years, and began to comprehensively promote the exploration and implementation of meta universe related businesses in 21 years.
With the whole case promotion service, whole case advertising agency and overseas advertising as the core business, China’s business has been steadily improved and overseas advertising has developed vigorously. The company’s business in China mainly includes all case promotion services in China (including content creativity, activity management, etc.) and all case advertising agents (including mobile digital advertising and Ott advertising). Blue label’s business in China is stable, which is related to China’s macro-economy, game, consumption and other market prosperity. Its 20-year revenue is 13.2 billion yuan and 21h1 is 5.05 billion yuan. Sea advertising is a sector with high revenue growth in recent years, and it is also the largest revenue source of blue standard at present. The revenue scale in 20 years is 24.4 billion yuan, with a year-on-year increase of 41%. The company is the only official authorized agent in China with meta, Google, twitter and other global top 16 media platforms.
From the management structure to capital, technology and talents, we comprehensively promote metauniverse, and constantly clarify that metauniverse business is the strategic core of the company in the future. At present, blue standard mainly carries out layout in the fields of virtual live broadcasting technology, virtual digital human creation and operation, virtual space and so on. In October of 21, the company cooperated with ALI Dharma academy to carry out virtual live studio service. The company’s first virtual person with its own intellectual property rights, “Su Xiaomei”, was officially launched at the beginning of 22 years. In terms of structure, a wholly-owned subsidiary of blue universe was established as the main position for Blu ray to focus on exploring the relevant investment and operation business of meta universe; On December 16, Zhao Wenquan resigned as the general manager of Bluefocus Intelligent Communications Group Co.Ltd(300058) and continued to serve as the chairman of the company, and will serve as the chairman of blue universe, focusing on the business layout of yuanuniverse.
The finance recovered a healthy rhythm, the revenue and net profit after non deduction increased steadily, and the burden of goodwill decreased significantly. The road of M & A brought about the expansion of the company’s scale in the early stage, but it also brought the pressure of goodwill impairment from 16 years. After several years of digestion, the finance returned to a healthy rhythm. In the past 20 years, the revenue of blue standard was 40.5 billion yuan, a year-on-year increase of 44.2%; The net profit after non deduction in 20 years was 589 million yuan, a year-on-year increase of 29.8%, and 21q1-q3 increased by 30%. The company’s human efficiency has continued to rise in recent five years, and the income generated by a single employee in 20 years has increased by 44.1% year-on-year. In September 21, the goodwill of more than RMB 1.8 billion related to blue standard international was stripped off, and the net amount of Bluefocus Intelligent Communications Group Co.Ltd(300058) remaining goodwill decreased to RMB 3 billion.
Investment suggestion: Bluefocus Intelligent Communications Group Co.Ltd(300058) as a leading marketing company in China, it is leading in business capacity, industrial chain layout, key customers and technology forward-looking exploration. Its financial performance in recent years also reflects the company’s scale advantage and sustained and steady growth ability. At the same time, based on the content creation and operation, accurate advertising, multi-channel connection and other capabilities accumulated over the years, the company is expected to lay out the meta universe and promote the blue label online Maas platform, which is expected to open the company’s future performance and valuation space. We expect that the net profit attributable to the parent company from 2021 to 2023 will be 636 million / 801 million / 977 million yuan respectively, with a year-on-year increase of – 12.2% / 26.0% / 22.0%, and the corresponding PE will be 41.4x/32.9x/27.0x respectively. It will be rated as “buy” for the first time.
Risk tip: the impact of macroeconomic changes and industry supervision on advertising, the uncertainty of epidemic situation outside China, the uncertainty of advertisers’ willingness to launch, the failure of new business development to meet expectations, the risk of goodwill impairment, and the recent stock price rise.
