Relying on the State General Administration of Sports, laying out the whole sports industry chain
China Sports Industry is the earliest listed company in China to develop the sports industry, laying out the whole sports industry chain. Its main business includes sports events, sports communication, education and training, sports lottery, offline sports space platform, online digital technology platform, as well as brand operation, capital operation, standard certification, research and consulting, sports real estate and so on. In 2020, real estate accounts for about 38% of the main business income, lottery-related income accounts for about 38%, and event management and operation accounts for about 9%.
Grasp the trend of industry growth and optimization, deep ploughing sports services and platforms to build the market demand and economic scale of the sports industry is growing year by year, supported by various policies, and has great potential for development. The sports industry chain includes upstream event resources, mid-stream media communication and downstream sports derivative industry. at present, sports derivative business accounts for the highest proportion of the total value of the industry, with the guidance of relevant policies and the diversification of residents' sports consumption, the proportion of sports service industry is expected to increase.
The company has many lines of business, covering the core value chain of the industry: strong competition resources, focusing on head IP development and operation; rich sports communication business, providing one-stop intermediary services; education and training reserve sports talents, fitness platform to help the health of the whole people. Under the background of national fitness and COVID-19 epidemic situation, the state attaches importance to the construction of sports service complex. The company will rely on the successful experience of the China Sports Ningbo project to carry out national promotion and coverage. with the support of the national policy, the construction of sports towns is also constantly advancing, while building an online digital technology platform to cater to the trend of "intelligent sports".
Sports Lottery: to form an industrial service chain and establish sustainable advantages the important acquisition of China Sports Lottery Science and Technology and China Sports Lottery Printing in 2020 will help the company to improve the deployment of lottery business.
The subsidiary Beijing Intel is engaged in the sales and maintenance of lottery terminals, and China Sports Lottery Technology provides the R & D, operation and maintenance of the core technology system of Sports Lottery. China Sports Lottery Printing is responsible for instant sports lottery, computer thermal ticket supply and sports lottery product design.
The lottery brings new growth in profitability and a sound overall financial structure.
After the company acquired China Sports Lottery Technology and China Sports Lottery Printing in June 2020, the lottery revenue increased from 57.8183 million yuan in 19 years to 749.7205 million yuan, and the gross profit margin increased from 31.46% in 19 years to the highest value of 59% in recent eight years. In addition to the decline in mergers and acquisitions in 2020, the company's asset-liability ratio remained stable and maintained a reasonable level, and the cash flow was in good condition.
Investment advice:
As the only listed company with the layout of the whole sports industry chain in China, the company has rich sports resources and complete sports business ecology. after the completion of asset restructuring, the lottery business has become a new growth point of the company's performance. help the company to better seize the opportunity of policy dividends and industry development optimization to bring sustainable growth. With the launch of related sports events in the past two years, the comprehensive estimated net profits for 21-23 years are 150 million, 240 million and 270 million respectively, and the market capitalization for 22 years is expected to be 12.4 billion yuan, corresponding to the stock price of 13 yuan. Give a "buy" rating.
Risk tips: epidemic impact risk, policy risk, event operation risk, business risk, new project does not meet expectations
