Overview of events
On the afternoon of August 28, 2022, Jebsen shares released a semi-annual report that the company realized operating income of 1.719 billion yuan in the first half of 2022, down 7.45 percent from the same period last year, and realized net profit of 404 million yuan belonging to shareholders of listed companies, an increase of 32.14 percent over the same period last year. Realized deduction of non-net profit of 377 million yuan, an increase of 54.85% over the same period last year.
The revenue structure further focuses on copyright and encourages amortization expenses to raise the management expense rate. In the first half of 2022, the company's new media copyright operation and distribution business, film and television content production business and audio and video technology business realized operating income of 16.97,0.15 and 7 million yuan respectively, with revenue growth rates of 1.73%,-81.43% and-93.13%, respectively. The gross profit margin was 39.77%, 20.84% and 65.43% respectively, with changes of 12.74pct, 1.61pct and 20.25pct respectively. In terms of expense rate, the sales expense rate was 2.71%, which decreased 0.03pct compared with the same period last year, and the management expense rate was 9.48%, which increased 4.71pct over the same period last year. This is mainly due to a large increase in equity incentive amortization expenses, with a financial rate of 2.54%, which decreased 0.58pct over the same period last year.
The profitability of the copyright business has improved, and the release value of Tencent's order verification film library in the first half of 2022. The company's core business, new media copyright operation and distribution business, maintained a good momentum, with revenue of 1.697 billion yuan, an increase of 1.73% over the same period last year, and a net profit of 486 million yuan, an increase of 55.05% over the same period last year. The gross profit margin of the copyright business increased significantly, increasing 12.74pct to 39.77% from 27.03% in the same period last year, mainly due to the signing of Tencent's order. The company's film library business with high gross margin has a large volume of revenue. Since the outbreak of the COVID-19 epidemic in 2020, the company has increased the distribution of the film library, further improved the cashability of the film library, and signed a 1.8 billion yuan license order with Tencent to further verify the value of the company's copyright library and the competitiveness of its business model.
Advanced layout meta-universe format, short video second creation to enhance high-quality copyright value to look forward to the future of the company, in meta-universe, the company has long had a layout-in 2016 to invest in Shiyou technology, advanced layout of virtual human virtual technology. 2022 is the first year of meta-universe, the industrial policy of meta-universe has been launched in many places, the underlying technology of meta-universe has made continuous breakthroughs, and continue to explore the forms of meta-universe, such as virtual copyright operation and virtual idol. According to the company announcement, Shiyou Technology achieved 34.3799 million yuan in revenue and 8.0435 million yuan in net profit in 2021, including 11.6735 million yuan in revenue and 3.339 million yuan in net profit in the first three quarters. At present, the application scene and industry of digital virtual human continue to expand, and it is expected that Shiyou's scientific and technological performance will continue to achieve high growth in 2022.
In terms of film and television copyright business, as many long and short video platforms join hands to carry out short video cooperation, the company has significantly benefited from the scarcity of high-quality film and television rights, and we believe that the company's copyright assets are expected to be revalued. the realization space of copyright assets is expected to be further improved.
Investment advice: maintain a "buy" rating
We maintain the original profit forecast: from 2022 to 2024, the operating income is RMB 5.9150.887 billion, the net profit of homing mother is RMB1.1.84 billion, the corresponding EPS is RMB 0.31, the closing price is RMB 5.71 per share, and the PE is 18,15,12 times. At present, the company has high barriers to film and television copyright business and high prosperity in the industry. at the same time, it continues to explore meta-universe-related new business type. We believe that its overall valuation level is low and maintains a "buy" rating.
Risk hint
COVID-19 's epidemic situation has added uncertainty to the release of new films in the film and television industry; the progress of the implementation of the film and television copyright contract is not as expected; and the small volume of Shiyou technology will not have a significant impact on the company's revenue and profits at present, and there is still uncertainty about the impact on the company's performance and operating results in subsequent years.