Event: Lisheng Sports issued an annual performance forecast for 2022. Lisheng Sports's estimated revenue in 2022 is 254.43 million yuan, down 9.42% from the same period last year. The net profit loss belonging to listed shareholders is expected to be 77.668 million yuan, turning to a loss over the same period last year. It is estimated that the net profit loss will be 78.02 million yuan after deducting non-profit, increasing the loss over the same period last year.
22 years of epidemic situation has repeatedly affected the competition income, the main business pressure revenue has decreased, 23 years of recovery in domestic and foreign events can be expected. In 2022, the epidemic was repeated across the country, offline events were postponed or cancelled in large areas, the company's business was affected, and the revenue of the main business decreased compared with the same period last year. With the adjustment of epidemic prevention policy in 2023, the holding of events at home and abroad is expected to return to normal, the enthusiasm of the public to watch the games is released, and the number of events and the scale of sponsorship are expected to gradually return to the pre-epidemic level. In terms of domestic racing, according to the CTCC 2023 calendar, there are expected to be six races each for the CTCC Super Cup and the TCR China Cup from May to November, and five for the CTCC China Cup; on the overseas side, the China Auto Federation Middle East Regional Formula one Championship has been successfully held in the United Arab Emirates and Kuwait, and 2023 motor racing is expected to recover. In addition, the company complies with the development trend of the popularization of automobile sports in China, and the new category of "competitive + entertainment" events has enhanced public participation, is expected to enjoy policy dividends, deepen the company's C-end market and enhance the company's industry status in the future.
The company uses digital technology to drive the development of the sports industry, and digital endowment is expected to contribute to performance increment. Since 2021, the company has actively laid out the "digital sports" industry. On the one hand, it seeks breakthroughs through the traditional offline business of digital empowerment, such as VR events, the development of intelligent management software for venues, and the R & D and production of electric kart. The company comprehensively explored VR equipment to broadcast sports events, and landed the first "VR watching Racing"-CTCC Macau Station in PICO, providing spectators with a multi-VR viewing experience, and the R & D and production of electric kart is also expected to be launched. On the other hand, the company laid out "National Fitness" and "physical Education", deeply participated in the operation of "Yueyu Circle", and launched products such as "Sports Bank" and "Intelligent Campus Sports", which closely meet the needs of the market. for the government, cities, enterprises and institutions and primary and secondary school campus sports digital scene construction to provide a comprehensive solution, is expected to open up the digital development space.
Investment suggestion: the company is expected to achieve a revenue of 2.54 / 6.16 / 866 million yuan in 22-24, a net profit of-0.77 / 0.77 / 125 million yuan, and a corresponding PE of 26.8 / 16.6X in 23 and 24 years, maintaining the "overweight" rating.
Risk tips: the epidemic repeatedly disturbed the company's racing and venue operation business; go-kart venues business progress is not as fast as expected; online business penetration is not as expected.