\u3000\u3000 Beijing Jetsen Technology Co.Ltd(300182) (300182)
Event: Beijing Jetsen Technology Co.Ltd(300182) released the performance forecast for 2021. It is estimated that the net profit attributable to the parent company for the whole year will be 450-490 million yuan, turning losses into profits compared with the same period in 2020; It is estimated that the net profit deducted from non parent company is 340-380 million yuan, reversing the loss year-on-year; Overall, the company’s annual performance in 2021 is in line with expectations.
Content copyright operation as the core, focusing on the production and distribution of high-quality dramas. In 2021, the company’s new media copyright operation and distribution business is expected to record a revenue of about 3.087 billion yuan, a year-on-year increase of 28.4% compared with the revenue of 2.404 billion yuan in the same period in 2020, and realize a net profit of about 561 million yuan. The company has video terminals such as Tencent, Youku, iqiyi and mango, operators such as China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) and high-quality customers such as hardware providers such as Huawei and Xiaomi. It continues to cultivate the needs and cooperation of existing customers and improve the distribution of the film library; At the same time, explore new business models, focus on the rich content resources of Huashi Netcom, and continue to deepen joint operation cooperation. In terms of production and distribution of film and television dramas, the company has successively produced dramas such as “falling in love with special forces” and “ace army”, which have received good market feedback. In the future, the layout of the company’s positive energy content track deserves attention.
“Resources + technology” two wheel drive has successfully created a virtual human “IP + operation” business closed loop. The company is the largest content copyright integration service provider in China, with more than 50000 hours of exclusive network broadcasting rights and about 80000 hours of non exclusive, leading the industry in terms of stock copyright reserves. Yuanyu technology, its virtual IP operator, is a joint venture between Shiyou technology, a joint-stock company, and Murakami technology, an entertainment content operator. It mainly focuses on the content creation and commercial operation of virtual people and digital art assets; At present, it has created a virtual image based on Chen Lu, the first world champion of Chinese figure skating, and launched its own IP virtual human “miaojiangtian”. On the evening of January 25, it held the first virtual performance brand – wonders Lingjing series live audio-visual concert. With the help of Shiyou and Yuanyu technology, the company is expected to open up the upstream and downstream of the virtual human industrial chain and realize the creation of virtual human IP matrix, virtual content copyright operation and the layout of the whole industrial chain of virtual technology. We believe that the company has a large number of film and television copyrights and animation copyrights, and a large number of IP roles can be imported into Shiyou technology database to form a large IP cycle matrix, then form content based on technology, obtain traffic through content, overlay back-end IP operations, and finally form a virtuous cycle; As a leading enterprise of film and television copyright in China, the company’s resource advantages may further appear.
Issue equity incentive plan to bind the interests of core employees. The company plans to grant a total of no more than 180 million restricted shares, of which the company plans to grant 144 million restricted shares to 101 incentive objects for the first time at the price of 2.58 yuan / share. The assessment target net profit in 2022 and 2023 is RMB 700 million and RMB 900 million respectively. We believe that the equity incentive policy will build a community of corporate interests and improve the internal driving force of performance growth.
Profit forecast and investment suggestions. According to the latest performance forecast of the company in 2021, the net profit attributable to the parent company from 2021 to 2023 is expected to be 489 million yuan, 704 million yuan and 865 million yuan, corresponding to 33 times, 23 times and 19 times of PE respectively. As a leading enterprise of film and television content copyright in China, the company has completed asset divestiture, focused on the main business of core content copyright operation, participated in the company’s Shiyou technology layout yuanuniverse track, with leading technical strength in the industry, and the virtual human business closed loop of “IP + operation” has initially taken shape. In conclusion, we maintain the “buy” investment rating of the company and suggest paying attention to it.
Risk tip: the risk of intensified market competition, the risk that the UHD industrial policy is less than expected, the risk of significant changes in downstream demand, and the risk of asset impairment. fifty thousand two hundred and sixty-six
