Baina Qicheng is gradually transformed into a content + IP whole industry chain operation platform. In 2018, the company actively responded to the mixed reform of central enterprises and introduced a new shareholder Yingfeng Group; from the end of 2020 to the end of 2021, it completed the holding of Beijing wonderful time Culture and Media Co., Ltd., realizing the layout of the film and animation track; in May 2022, Warburg Bainer announced that it had officially changed its name to "Beijing Baina Qiancheng Film and Television Co., Ltd.". At present, the company's business covers film and television, marketing, animation and other fields, horizontally establish drama, film, animation and other content matrix, vertically with high-quality content as the core of the industrial chain extension, from a simple film and television company to create a "content" and "content +" two-wheel-driven IP industry chain operation platform.
Series business to diversification, serialization strategy transformation, active layout of short dramas and other emerging tracks. In terms of drama business, the company has stable production capacity, steady improvement in output quantity and quality, and maintains good cooperative relations with customers of all kinds of channels, in addition to front-line TV media and major long video platforms, actively develop business cooperation with byte jumps and other emerging Internet platforms to tap high-quality channel resources. The company has rich series reserve projects, adhere to the line of high-quality content, gradually try to layout younger and diversified drama projects, explore innovative themes, and constantly enrich product types and improve product quality. for example, the company's major project "Orphan Mars" is the first to explore and break through in the field of domestic hard science fiction. At the same time, the company actively layout film projects related series of short plays and so on. At present, more than half of the series reserved by the company have been turned on and have entered the stages of post-production, review and broadcast. Starting from the second half of 2022, the company's high-quality production capacity is expected to enter the rapid release period.
Vigorously develop the film and animation business, gradually improve the industrial layout, the potential of the film business is expected to be gradually released.
The company regards film, animation and other business as an important development direction, vigorously promotes and improves the business layout, and reserves professional production talents and rich film project resources. At the same time, the company used to participate in film projects in the form of joint production and joint distribution, but the upstream layout is not deep enough. at present, the company finishes the layout of the whole industry chain by holding Beijing. It has been announced that most of the film reserve projects are "main investment control".
With the emergence of roles, the future company may further gather and bind core film talents and expand the film creative team in the industry trough by means of joint ventures and strategic investment, and the film business potential is expected to be gradually released. The company's current major project reserves include the animated film "Youth of casting Sword", "Youth of Day by Day", which belongs to the same series as "Lion Boys" (completed on April 20, 2022) and "Lion Boys 2". It also includes live-action film projects such as "Dunhuang Heroes", "Demining Forces" and "Space Spring Festival Transport".
Rely on the content matrix, actively explore new marketing, new consumption, new travel, and build the whole industry chain operation mode of IP. The company is rich in content matrix, and has accumulated preliminary IP through previous film and television products. in the future, with the release of "Youth Series" animation films and other IP to movies and dramas, the company's IP reserve is expected to continue to enrich, and its business will evolve to the direction of "serialization", "IP overall operation" and "integration of content marketing". More collaborative value exploration will be carried out in the fields of new marketing, new consumption, new literature and travel, etc. Realize the diversified realization of the whole industry chain of IP.
Investment suggestion: the company has stable drama production capacity, rich channel resources, diversified project reserves, and vigorously develop the film and animation business. Starting from the second half of 2022, the company's production capacity is expected to accelerate the release.
In the future, other businesses such as film and television, animation and marketing will produce synergy, which is expected to accelerate the accumulation and diversification of IP. We estimate that the company's parent net profit from 2022 to 2024 will be 60 million yuan, 91 million yuan and 116 million yuan respectively, corresponding to the existing share price PE of 70X10 46X and 36X respectively, covering for the first time and giving a "recommended" rating.
Risk tips: (1) the epidemic repeatedly affects the production progress of the company's film and television projects; (2) strong regulatory policies in the film and television industry exceed expectations; (3) long video platforms reduce content procurement budget; (4) the risk of customer loss in marketing business.