Signed a virtual digital human cooperation agreement with Zhejiang Mobile Hangzhou Branch to maintain the "buy" rating according to the announcement issued by the company on the evening of July 7 (2022-091). Mercedes-Benz Information recently signed a "Cooperation Agreement on Virtual Digital Human" with Hangzhou Branch of China Mobile Limited Communications Group, and Mercedes-Benz Information provided "Xiaopang Shuoyun" virtual digital human service for Zhejiang Mobile Hangzhou Branch. We believe that the signing of the agreement marks the beginning of the marketization of the company's virtual digital human business, and it is also the embodiment of the company as an important member of the meta-universe ecology of mobile operators. We maintain a forecast of home net profit of 4.25 Wind 503 million yuan in 22-24, which is comparable to the company's Wind consensus forecast average PE 17X in 22 years. Considering the landing of the company's virtual digital human business, the meta-universe layout is expected to be given to 2022 18X PE. The target price is 54.90 yuan, maintaining the "buy" rating.
Based on the cooperation of "Xiao Pang Shuo Yun", the virtual digital human business opens the market, according to the company announcement (2022-091). Through this cooperation, Zhejiang Mobile Hangzhou Branch can use the virtual digital human Xiao Pang to explain its cloud service content to its customers. At present, this service is provided free of charge by Mercedes-Benz information. If Zhejiang Mobile Hangzhou Branch provides digital human products to its customers, or Mercedes-Benz information upgrades and iterates the products, or Mercedes-Benz information provides other product-related services, after consultation between the two parties, the relevant fees will be agreed upon separately. This cooperation is the first landing of the marketization of the company's virtual digital human business. We believe that the follow-up company is expected to gradually upgrade and iterate its products and explore the business model of related products and services, and may continue to expand from ToB and ToG scenarios to ToC scenarios in the future.
Establish a strategic partnership to achieve long-term cooperation, in-depth cooperation with mobile operators and other diversified companies in addition, according to the contents of the announcement, Mercedes-Benz will also establish a strategic partnership with Zhejiang Mobile Hangzhou Branch to carry out fruitful all-round cooperation in various fields. In recent years, through the signing of framework cooperation agreements with a number of enterprises, the company has widely distributed 5G, digital reading, VR/AR, robot meta-universe, artificial intelligence, digital twins and meta-universe and other business directions. Partners include a number of mobile operator system enterprises and business-related industry leaders, such as China Mobile (Jiangxi) Virtual reality, Unicom online Information Technology, Unicom Lingjing Video (Jiangxi) Technology, Xinhuanet, Kuaishou Technology and so on. We believe that the company is expected to strengthen the importance of meta-universe layout in mobile operators through extensive cooperation and continue to expand the relevant forward-looking industrial layout.
Metacosmos business exploration has been promoted, and smart families and 5G have continued to expand for 22 years, maintaining "buy" rating companies to carry out business around operators' terminals and content applications, and building a smart family ecological industry chain of "terminal + platform + content applications". The growth trend of smart family and other business in the past 22 years is expected to continue, at the same time, the company has cut into meta-universe from the field of communication operators, and the business layout of virtual digital human has been opened to marketization. It is expected to expand the application scenarios of virtual digital human products from the three levels of enterprises, families and individuals. We maintain the 22-24 year return net profit forecast of 4.25 pound 503pm 580 million yuan, 22 years comparable to the company's consistent expectation of the average PE 17X, taking into account the company's virtual digital human business landing, meta-universe layout for the future, give 2022 18X PE, give the target price 54.90 yuan (the previous value of 48.64 yuan), maintain the "buy" rating.
Risk hint: the construction progress of 5G is lower than expected, and the development or commercialization of metacosmos-related technology is slower than expected.
