Events:
In the first half of 2019, the company achieved operating income of about 443 million yuan, down 20.84% from the same period last year; net profit from home was 22.7254 million yuan, down 11.51% from the same period last year; and earnings per share was 0.0269 yuan, down 11.51% from the same period last year.
Main points of investment:
The sports business continues to grow steadily, and the company's bright spot during the reporting period is that the sports business continues to maintain steady growth-revenue from the sports sector increased by 19% in the first half of the year compared with the same period last year, which continues to be an important growth point for the company's performance. At present, the strategic goal of the company rooted in sports, focusing on sports, becoming the integrator of sports industry resources, the maker of rules and the builder of industrial platform has achieved initial results. there are eye-catching performances in sports events, sports space content and operation, national fitness, sports marketing and market development business. The business model of sports industry + a variety of industry resources begins to play a pulling effect and is the absolute leading company in the industry.
Sports business: event management operation, market development, venue operation, event operation business will release performance in the second half of the year. In terms of event management and operation business, revenue during the reporting period was 8.4978 million yuan, an increase of 69.79% over the same period last year, with a gross profit margin of-48.74%. This is mainly due to the substantial increase in revenue caused by the company's holding of the Beijing half Marathon and the Tour Qinling Cycling Race in the first half of the year. at the same time, the company will operate in the second half of the year, the company will operate the three core events of Beima, Wuma and Guangma due to a small increase in investment. The second half of the year will be the window for the performance release of the company's event operation business, and we believe that the company's event operation business for the whole year is expected to maintain a steady growth trend; in addition, the company won the 2019 National Fitness Competition operator selection project will accumulate more profound industrial resources.
Sports event market development, marketing and sports brokerage business will be an important performance growth point of the company in the medium term.
The company already includes 2019 CISM World Games's market development commercial implementation body, 2019 Olympic Day national exclusive operator, 2021 National Games exclusive market development service provider, Beijing area franchise retailer of 2022 Beijing Winter Olympic Games and Winter Paralympic Games (and is applying for Tianjin area), ticketing consulting service provider of the 2022 Hangzhou Asian Games Asian Organizing Committee, and many other major projects. It is the biggest beneficiary of the spring tide of sports events in the next three years.
The large-scale replication mode of venue operation is on. During the reporting period, the company's stadium operation business achieved revenue of 88.12 million yuan, an increase of 39.14% over the same period last year, and the development momentum is also very good. SPORTS City, which was operated by the company in the first half of the year, was officially opened for operation, and at present, the passenger flow performance is excellent; at the same time, the characteristics of large-scale replication of this complex have also begun to appear gradually-the company has signed a cooperation agreement with Yizheng City in Zaolin Bay Leisure Town, which is expected to release the performance one after another. In addition, the company also continues to increase the supply of all kinds of performances in the operation of stadiums and stadiums to provide a solid content foundation for the operation of stadiums and stadiums.
In terms of internationalization, the company is the implementer of the "Belt and Road Initiative" strategy in the sports industry. During the reporting period, it hosted the Sports Industry Forum of the three countries in East Africa, implemented "three-in-one" sports technical assistance projects such as Jamaica, Samoa and Uruguay, and carried out projects such as commercial training for Burmese athletes and workshops for Malagasy athletes to come to China. This business is expected to benefit for a long time with the help of the continuous promotion of China's Belt and Road Initiative strategy.
Asset restructuring will continue to advance and improve the company's sports territory. During the reporting period, the company continued to promote equity acquisitions of four companies in the field of sports lottery service, sports standard service and certification testing. We believe that on the one hand, the company's move will improve the company's business territory and achieve the company's strategic goal as a benchmark company in the domestic sports industry; on the other hand, it also shows the determination and confidence of the management of the company to start a business. It is the core logic that we are optimistic about the company's medium-and long-term development.
Investment rating and profit forecast
We believe that the company's resource advantages in sports event operation, market development, sports complex development and operation in the past 19 years have begun to be released, and the landing of major events in the second half of the year will release major performances. so that the annual performance to maintain a steady growth trend. In the medium term, the overall business of the company will also be supported continuously with the intensive holding of competitions in the next three years, so as to make the growth of performance more resilient. We continue to give the company an investment rating of "overweight". Without considering the approval of the company's restructuring, the company's EPS is expected to be 0.14,0.20 and 0.26 yuan per share respectively from 2019 to 2021. Investors are advised to keep a close eye on it.
Risk hint
Sports industry policy risks, the company's business development is not up to expectations, major changes have taken place in business, and the real estate industry remains in the doldrums.
