Event: the company recently issued a performance forecast that the net profit in 2021 is about 35 million-52 million yuan, down 66.0% RMB77.11% from the same period last year, with an estimated loss of 182 million-199 million after deducting non-profit.
After the reorganization, the company gradually divested or made provision of the original loss business, and all kinds of non-recurrent profits and losses had a greater impact on the performance. The decline in performance in 2021 is mainly due to the large losses of some participating companies and the impairment of long-term equity investment. On the other hand, the transfer of all shares in Fantasy Yueyou, a subsidiary of the company, is expected to affect the net profit of about 130 million yuan; it is expected that the company will continue to deal with related loss assets in the future, further optimize its asset structure and business layout, and thoroughly improve the situation in which profits are dragged down by shareholding companies while providing sufficient capital and resource support for new business.
Create "flow operation-product development-brand service" business closed loop. In terms of traffic operation, the company's data flow ecological park has gathered more than 130 enterprises, with a flow delivery scale of more than 1.3 billion yuan.
Relying on the aggregate benefits of the ecological park, the newly established digital marketing business line achieved an income of 1 billion yuan + that year, which is effectively complementary with its own traffic platform of 2000 million monthly active users. On this basis, the company's "quasi-medical beauty" brand FAITH has become a hit as soon as it is launched, successfully reaching the top of Douyin's list of cross-border imported cosmetic explosives TOP1.
"Chess + e-sports" competition continues to be hot, daily service Texas hold'em products reached the top of the Apple Store.
In 2021, the company's green chess and card e-sports product, "Master Texas hold'em", successively held a series of events such as the Spring Festival Challenge and Texas hold'em Spring Competition, and reached official cooperation with HUYA Inc. platform, the popularity of the event exceeded 100 million. Overseas, its Japanese DePop competitive product "Sunvy Poker" added 220000 users without buying in 2021, with a total registration of more than 1.2 million, accounting for 1% of Japan's population, far exceeding similar products, and ranked first in the IOS Japan poker game download list and top 10 in the best-seller list throughout the year. In the future, the company may copy the successful experience of Japan to other overseas regions to create new profit growth points.
Layout intelligent digital human direction. In 2021, the company will establish a joint venture with Beijing Zhijing Future Technology Co., Ltd., which will build a virtual digital human production platform with the joint venture company as the main body, develop virtual anchors / idols, and effectively coordinate with the company's core businesses such as e-sports games and brand marketing to maintain "overweight" ratings. After the reorganization, the company continued to divest its early investment or participated in the loss-making business, with leisure e-sports and flow park business as the core, and achieved multi-point flowering in just one year.
Leisure e-sports products are successful at home and abroad, but also rely on the flow business advantages to launch an exclusive "quasi-medical beauty" explosive. And in time according to the industrial changes, the layout of the digital human business, will achieve effective coordination with the main business. Give the company a profit forecast of 2021-23 0.03max 0.11max 0.15 yuan, corresponding to 179-41-32 times PE, maintaining the "overweight" rating.
Risk hint: the risk that the business development is not as expected; the risk of impairment such as goodwill.