occurrences

On January 30, 2023, the company released its 2022 performance forecast. The company's net profit returned to the parent during the reporting period was a profit of 220-3.2 million yuan, a year-on-year decrease of 94.08%-95.93%. Non-net profit after deducting profit was 50—1,050,000 yuan, a year-on-year decrease of 97.67%-99.89%.

reviews

The pandemic has affected advertising budgets, and business performance has been impacted. Due to the impact of the COVID-19 pandemic, the economic environment and macroeconomic policies during the reporting period, the marketing strategies of SME customers were more cautious, and the company's business order volume decreased. Furthermore, under the impact of the environment, the company's procurement costs (mainly traffic costs) increased, and the combined influence of revenue and cost led to a decline in the company's net profit.

On a month-on-month basis, the company's net profit for the fourth quarter was 846-9.46 million yuan, an improvement in operating performance compared to the previous three quarters.

Card universe marketing focuses on virtual digital content and assets. During the reporting period, the company focused on commercialization services such as the production and operation of virtual digital content and related digital assets, and initially formed two major product systems in the service category (virtual live streaming, XR live streaming, virtual person) and platform category (infinite box, unlimited number collection), laying the foundation for metaverse marketing in the web3.0 era, which is expected to increase the company's market share and profit margin level in the metaverse marketing era.

With “content+technology” as the core business strategy, we have the ability to create our own content and develop our own platform. In terms of the live streaming business, the company increased the company's content production capacity by building its own content shooting site and live broadcast room; in the metaverse business, the company developed two platform-based products, Infinite Box and Infinity Collection, by forming its own team to independently produce virtual people and XR live streaming services. At present, the company's new business R&D team has reached 100 people, including 40 people in the service business team, 50 in the platform business R&D team, and about 10 people in the business team. At the same time, the company actively cooperated with external technical teams to maintain timely updates of virtual technology and good iteration of innovative service capabilities.

Profit forecasting

We expect the company's revenue for 2022-2024 to be 33.26/44.95/4.723 billion yuan; the net profit of the mother is 0.03/0.51/088 million yuan; the corresponding EPS is 0.02/0.40/0.70 yuan. According to the closing price on April 3, it corresponds to 84/48 times PE in 2023-2024, respectively. The company has been deeply involved in the marketing field for many years and has maintained good cooperative relationships with mainstream Internet platforms. Based on the web 3.0 trend, marketing methods may usher in changes. The application of AI tools will help the marketing industry reduce costs and increase efficiency and increase profit margins. The company's forward-looking layout is expected to reap an increase in market share due to technological changes in the industry. First coverage, giving a “buy” rating.

Risk warning:

New business progress falls short of expectations; technological innovation risk; advertiser budget investment falls short of expectations; macroeconomic risk.