Main points of investment
The company was formerly known as Jinzhou Xinhua Dragon Molybdenum Industry Co., Ltd., and later renamed Jinzhou Jixiang Molybdenum Industry Co., Ltd. The main business is the production, processing and sales of molybdenum, with the integrated production capacity of roasting, smelting, molybdenum chemical industry and molybdenum metal deep processing, and mainly adopts the order-based business model of "fixed production by sales" to carry out domestic and foreign trade business. Jixiang Film Studio, a subsidiary of Jixiang Film Studio, was established in November 2016, and gradually began to transform into an entertainment industry.
Major shareholder change, Ningbo Jutai Investment is the largest shareholder. Ningbo Jutai takes over the relevant shares of the company's former shareholders Tan Jiugang, Tian Gang, Qin Lijing and Jinzhou Xinhua Dragon Industrial Group Co., Ltd., and at the same time buys shares in the secondary market. Up to now, the total shareholding accounts for 32% of the total share capital of Bijixiang, and is the largest shareholder of the company.
Introduce a new senior management team and inject fresh blood to help the transformation. At present, the company's senior management team has rich experience in the capital market and entertainment industry. Chairman Li Yunqing has worked in Guotai Junan Securities as the marketing director of Northern Jiangsu and the Jiangsu sales director of Yinhua Fund, and has rich experience in the capital field. Director Xi Xiaotang was the general manager of Beijing Ruyi Xinxin Investment Co., Ltd., and is now the general manager of Jixiang Studio, a subsidiary of the company. Sun Jian, deputy general manager, has worked in the field of games and Internet for many years, successively in 51job, Nine cities, EA, Game Snail, Century Tiancheng and other companies.
The contribution of revenue and gross profit in 2016 is mainly molybdenum furnace charge. The company's 2016 revenue was 1.373 billion, a year-on-year growth of-14.92%, and net profit was 29 million in 2016, down nearly 50% from 2013. In terms of revenue contribution, it is mainly molybdenum furnace charge business, accounting for 63.94% in 2016, followed by molybdenum chemical business, accounting for 19.18% of revenue. In terms of gross profit, the gross profit of molybdenum furnace charge business accounted for 65.55% in 2016, and molybdenum chemical business accounted for 27.11%.
Jixiang Studio invests in a number of film and television projects and is expected to contribute to its performance. According to the latest related party transactions, in terms of TV dramas, Jixiang Studio invested in the filming of TV dramas such as "National Life", "Guardians", "ordinary years", "fighting Kunlun", "you are still here", "Chronicle of the six dynasties", "Tianjin 1928", "Old traditional Chinese Medicine", "the Frontier of Love" and other TV dramas, including "you are still here", "Old Chinese Medicine", "the Frontier of Love" and so on. Contribute to performance. In terms of movies: the three generations of Peach Blossom and the Sewing Machine Band were released in 2017, followed by Asura, the Weather explosion, Animal World and other works.
Profit forecast and valuation: at present, the company's revenue is still dominated by the molybdenum industry, but the benefit of the traditional main business is low, and the profit contribution is gradually declining, according to the company's project reserve and the configuration of the senior management team. in the future, the company is expected to make a breakthrough in the cultural and entertainment sector and become an important business outside the company's molybdenum industry.
We expect the company's operating income from 2017 to 2019 to be 2.097 billion yuan, 2.14 billion yuan and 2.335 billion yuan respectively, an increase of 52.67%, 2.08% and 9.07% respectively over the same period last year; and the net profit belonging to the parent company is 210 million, 422 million and 485 million respectively, up 613.73%, 101.52% and 14.76% respectively. As we expect that the core of the company's profit contribution in the future will gradually shift from the molybdenum industry to the cultural and entertainment industry, compared with the average 2018 valuation of related companies in the film and television sector, the company's current profit forecast corresponds to a valuation of 21 times. It is covered for the first time and rated as "overweight".
Risk hints: 1) Management risk: most of the company's senior executives are in the entertainment industry, and they are not familiar with the traditional business, and the traditional molybdenum industry has the risk of continuing to decline; 2) Film and television business risk: project launch is not as expected risk, policy regulatory risk.