The net profit achieved in 2016 was 378 million, an increase of 41.8%, which was basically in line with expectations.
The company released its annual report in 2016, with revenue of 2.57 billion yuan, an increase of 36.61%, a total profit of 390 million yuan, an increase of 41.33%, and a net profit of 378 million yuan, an increase of 41.8%. Basically in line with expectations. At the same time, it is proposed to distribute 1 yuan (including tax) for every 10 shares; the company also issued a quarterly report for 17 years, realizing a revenue of 380 million yuan, a decrease of 25%; and a net profit of 64 million yuan, an increase of 60.08%. The decline in revenue in the first quarter was mainly due to the 16-year broadcast of "filial son of the whirlwind" in the first quarter, which was changed to the third quarter of this year. The increase in net profit was mainly due to the good issuance of the project and increased efforts to collect accounts receivable.
The growth rate of main business and net profit has slowed down, and the comprehensive gross profit margin has rebounded slightly.
The growth rate of the company's main business and net profit has slowed in 16 years, due to 14 years of blue flames of mergers and acquisitions, resulting in 14 and 15 years of high performance growth. Specifically, the company's business includes variety, film and television, marketing and sports, among which, because film and television and variety are project systems, the return on investment ratio of different projects fluctuates to a certain extent, but remains basically stable on the whole. Benefiting from the younger transformation of the company's film and television business, the project orientation is more networked and fashionable, which promotes the rise of the film and television business gross profit margin, and the company's 16-year comprehensive gross profit margin has rebounded slightly.
The effect of film and television rejuvenation transformation is obvious, and the project reserve is rich.
The company began to adjust the tone of film and TV drama products in the past 15 years, taking into account the needs of young audiences in the new media environment. The effect of the transformation of the product route is obvious, and the gross profit margin of the film and television business in 16 years is significantly higher than that in 15 years. The 16-year film and television income mainly comes from the first round of releases of projects such as "the workplace is a technical job" and "long live Love", as well as the second round of past plays. From the project reserve, the projects that are expected to contribute income in 17 years include "late Night Canteen", "Legend of Liji", "Moonlight in the City" and so on, among which "late Night Canteen" and "Legend of Liji" sell better. it is expected to promote the sustained growth of the film and television business in 17 years.
Variety shows began to expand, giving strong impetus to 17 years of performance.
The company's 16-year variety income mainly comes from "whirlwind filial son", "Cross-border Song King", "my New clothes" and so on, which have won a good reputation and provided a basis for the further development of IP. At present, "Crossing King 2" has been broadcast on Beijing Satellite TV, and "whirlwind filial son 2" is under preparation and is expected to be broadcast in the third quarter. At the same time, new variety shows scheduled for 17 years include "come on Brothers", "sonorous Rose", "the Big Dreamer", "many stories in a small Town" and an unnamed music show. After the accumulation over the past few years, the company's variety show production capacity will be released this year, which will give a strong impetus to the performance of the sector.
All businesses are going hand in hand, and are planning to acquire assets and maintain increased ratings.
The company's younger transformation is beginning to bear fruit and will continue to contribute to the gross profit margin of the film and television business. Variety production capacity has been released and high performance growth has been guaranteed. The development of content will bring the growth of marketing business, while the company's new business sports also maintain a good momentum of development. The company recently issued an announcement planning to acquire assets, which will inject new vitality into the company's development if it goes well. Regardless of mergers and acquisitions, it is estimated that the EPS from 2017 to 2018 is 0.63 yuan and 0.77 yuan, corresponding to PE32X, 26X. Since the last rating, due to the market correction and tighter regulation, the media valuation center has declined. Considering the valuation of the same industry and the expectation of asset acquisition, we think that it is more reasonable for PE to give 35X-40X range in 2017, and accordingly adjust the target price to RMB21.9RMB-25.03RMB to maintain the overweight rating.
Risk hint: the progress of asset mergers and acquisitions is not as expected.