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浙文互联(600986):加速大股东产融共振 全面拥抱AI与数字经济

Zhejiang Internet (600986): Accelerating the Resonance of Industry and Finance for Major Shareholders to Fully Embrace AI and the Digital Economy

華金證券 ·  Apr 25, 2023 00:00  · Researches

Key points of investment

Incidents: The company achieved revenue of 14.737 billion yuan in 2022, an increase of 3.10% over the previous year; the net profit of the mother was 808.066 million yuan, a decrease of 72.55% over the previous year; basic earnings per share of 0.06 yuan; no increase, no dividends, no stock transfers. In the first quarter of 2023, the company achieved revenue of 2,794 million yuan, a year-on-year decrease of 31.51%; the net profit of the mother was 383.623 million yuan, an increase of 8.42% over the previous year; and basic earnings per share of 0.03 yuan.

Under the influence of global events, impairment was calculated lightly, and there was a clear recovery in the first quarter of '23: affected by global events such as the pandemic, the company's downstream customers were greatly affected, causing the company's profits to decline. At the same time, a credit impairment loss of 126 million was calculated. After the epidemic ended, the industry as a whole picked up. While the company's profit increased in the first quarter of 2023, gross margin increased by more than 1 point month-on-month and year-on-year to 5.58%, clearly showing a recovery trend.

Fully embrace AI+ and expand marketing boundaries. The company led the development of AIGC application tools and launched AIGC tool applications such as rice painting (AI painting tool) and digital warrior (metaverse scene generator) to gradually develop cross-platform collaboration capabilities, improve digital marketing content production efficiency, and jointly improve quality and efficiency for itself and its brands. Its subsidiary, Zhejiang Meita, targeted Midjourney to create a new input port in the field of AI painting. Its metaverse digital art creator community had 470,000 registered users by the end of 2022. The company's fundraising project also targets AI intelligent marketing systems to lay out digital asset accumulation for customers and users through underlying data deployment and data management applications. The platform is already connected to big domestic AI models such as Wen Xin Yi Yan.

Give a “Buy-A” rating. Zhejiang Cultural Investment, the controlling shareholder of the company, is a provincial level state-owned enterprise and the only cultural investment and financing platform under Zhejiang State-owned Assets. 2022 is the beginning of the upgraded version of Zhejiang's digital economy “Project No. 1”. It is planned to achieve a new round of “double growth”. By 2027, the value added of Zhejiang's digital economy and the value added of core industries will exceed 7 trillion yuan and 1.6 trillion yuan respectively. The company will respond positively and participate in Zhejiang's digital construction, and is rapidly advancing the implementation of the Zhejiang investment plan of 165 million shares, opening up a new development path for digital culture through digital cultural tourism and the value of data elements. EPS for 2023-25 is expected to be 0.20/0.26/0.33 yuan, and the corresponding PE is 32/25/20 times.

Risk warning: impairment such as bad goodwill; AIGC and metaverse business development falls short of expectations; macroeconomic downturn, etc.

The translation is provided by third-party software.


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