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华扬联众(603825):营销资源构筑护城河 “元宇宙+营销”前景可期

Huayang Lianzhong (603825): Marketing resources build a moat, and the prospects for “metaverse+marketing” are promising

西南證券 ·  May 4, 2022 00:00  · Researches

What happened: the company released its annual report for 2021 and its first quarterly report for 2022. In 2021, the company achieved revenue of 13.21 billion yuan, an increase of 44.5% over the same period last year, and a net profit of 230 million yuan, an increase of 9.3% over the same period last year. 2022Q1 achieved a revenue of 2.68 billion yuan, an increase of 11.9% over the same period last year, and a net profit of 20 million yuan, an increase of 28.8% over the same period last year.

The advantage of marketing resources is highlighted, and "data + customer + media" builds a moat. 1) data resources: the company has planned and implemented a large number of marketing activities for customers over the years, and has accumulated rich consumer characteristics, behavior and feedback data. 2) customer resources: the company has about 100 medium and large customers, and long-term cooperative customers include The Estee Lauder Companies Inc, OPPO, Dongfeng Nissan, Mengniu, JD.com, Yum Group, General Mills, etc. These customers maintain a steady growth in the amount of cooperation with the company every year, laying a good foundation for the company's sustained and rapid development. 3) Media resources: the Internet media cooperated by the company include all domestic well-known Internet companies, such as Tencent, Baidu, Inc., Sina, NetEase, Inc, etc., the cooperation between the two sides is long and stable, and the amount of cooperation is large. Marketing resources build the company to develop a moat, brand marketing business may continue to contribute to stable income.

Actively carry out new retail business and create new performance growth poles. The company focuses on the vertical integration of resources in automotive, duty-free and other subsectors: 1) expand the new automotive retail system: the company opens the automotive full-link service system for Beijing Automotive BJ90 models, and customizes new automotive retail solutions driven by both technology and content. 2) explore the new online duty-free retail scene: the company set up a joint venture company to assist Hainan Travel Company in the overall layout of the online duty-free service system while importing, distributing and retailing duty-free goods. The new retail business has more room for development, or it will become a new profit growth point.

Explore meta-universe and empower the infinite possibility of "meta-universe + marketing". 1) in terms of underlying technology reserve, set up joint ventures with Burning Wheat Technology and Joy Entertainment to explore the production and construction of meta-universe digital content; 2) in terms of scenarios, the digital collection "the Troupe of Qin Terracotta Warriors and horses" topped the APP best-selling list; 3) in the field of marketing and commercial realization, develop the virtual image "Sweets" for Dior. 4) in terms of transaction, he signed a cooperation agreement with Industrial and Commercial Bank of China to jointly carry out the digital RMB closure test. Relying on the existing advantages of brand marketing business, the company continues to explore a new mode of integration of meta-universe and marketing, and its future development is worthy of attention.

Profit forecast and investment advice. It is estimated that the net profit from 2022 to 2024 is 300 million yuan, 430 million yuan and 490 million yuan respectively, and the net profit CAGR is 28%. The company is a well-known Internet advertising and marketing enterprise, the main business advantage is more obvious, "meta-universe + marketing" helps virtual human IP business realization and application scene expansion, is expected to become a new growth point of potential performance. To sum up, we give the company a 20-fold valuation in 2022, corresponding to the target price of 23.4 yuan, covering it for the first time and giving it a "buy" rating.

Risk hint: market competition aggravates risk, new retail business development is less than expected risk, industry policy risk.

The translation is provided by third-party software.


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