1. Matrix: build a full-scene interactive entertainment social platform based on matrix products.
The company's products cover multiple scenarios in the social field, meet the diversified needs of different ages and different professional users, achieve matrix product income, and obtain more market space. For example, App, which adopts live show mode and mature business, is firmly in the forefront of the market, bringing sufficient cash flow. Jimu App mainly focuses on stranger social mode, mainly concentrated in first-and second-tier cities, and is especially popular among young users, with 61% of young users aged 20-29, which is higher than comparable platforms. App is a video dating model, facing the sinking market, targeting "small town youth" in third-and fourth-tier cities, and currently has more than one million online blind dates per month.
2. Collision between virtual and reality: "ROOMUU+ Project" creates a new social model.
ROOMUU, the first real-time interactive positioning bar in Jimu, opened a trial operation in Changsha, where users and bar customers can achieve online and offline social interaction. The "online + offline" mode can be replicated. For example, the "Jimu Night" activity, which began on November 11, covered offline sites in nine cities, further expanding its offline influence, and becoming an "online gathering place" for offline activities. to achieve offline and online two-way diversion.
3. Inflection point: restart growth beyond the bottom, and support matrix strategy with sufficient cash to push forward.
Under the matrix application layout, the traditional main App Yingke live broadcast and innovative App develop together, which makes the performance of Yingke 2021 maintain a high growth rate and increase its cash reserves.
4. Investment rating and valuation: Yingke's revenue in the next three years is expected to be RMB 102 / 13.1 billion respectively, with an adjusted net profit of RMB 490 million, an adjusted profit of RMB 570 million, and a corresponding adjusted profit margin of RMB 4.8%, 4.9%, 5.0%, respectively, and 0.23, 0.26, respectively. Give 2022 0.41 times PS valuation, corresponding to the 2022 target price of HK $2.60, for the first time to cover the "recommended" rating.
Risk tips: changes in industry policy; repeated epidemic situation; expansion of investment in marketing.