Stripping off the main industries such as traditional textiles and steel pipes, comprehensively focusing on big data and the new track of Internet marketing, and stepping into a new track of development.
Zhejiang Furun is a veteran key textile and steel pipe enterprise. since it was listed in 1997, the company has been operating steadily and the cost control ability of the management team is outstanding. On December 29, 2016, the company completed the acquisition of a 100% stake in Taiyi, realizing the layout of big data and the Internet marketing industry. On August 3, 2020, the company listed to transfer 46% equity of Zhejiang Furun Printing and dyeing subsidiary and 51% equity of Zhejiang Furun Textile at a transfer price of 201.391 million yuan. The bidder is the controlling shareholder Furun holding Group. After the completion of the transaction, the divestiture of the traditional textile industry will be completed, focusing on big data and the new Internet marketing track.
The MCN industry has entered a stage of rapid growth, but it is faced with painful points such as strong bargaining power of head anchors, weak reputation at the waist and weak liquidity.
With the accelerated development of live broadcast with goods and other modes, the MCN industry is in the stage of rapid development, with an overall industry scale of more than 10 billion. However, as the head network celebrity anchors master a large number of fans and brand channels, the head anchors have a strong say in the field of sharing and changing the MCN platform, resulting in the weakening of the bargaining power of MCN institutions. On the other hand, due to the lack of credibility of the products with goods and the limited number of fans, the realization ability of waist network celebrities is weak. at the same time, it is difficult and uncertain to cultivate waist network celebrities into head network celebrities, and the risk of input and output is high. With the continuous development of the MCN industry, the pain points faced by the industry are becoming more and more prominent.
The company combines big data, blockchain, 5G packages and other products and technology accumulation to create a new 2B MCN model, which is expected to solve the bottleneck of the industry.
The company's subsidiaries Taiyi Shang and Furun number chain have accumulated products and technologies such as big data, Block chain and 5G packages for many years, and have rich customer reserves in government, commercial and other fields. Based on its own resource endowment, the company innovates 2B MCN model and creates a new B-end MCN model with controllable accounts. By combining B-end customers such as retailers and brands with MCN, blockchain, 5G and other technologies, it is expected to solve the bottlenecks such as excessive bargaining power and personnel flow of head network celebrities, as well as limited credibility of waist network celebrities and lack of carrying capacity. With the gradual landing of B-end customers such as 2B MCN in shopping malls, it is expected to accelerate the growth of the company's performance.
Investment advice and profit forecast
The company strips off the traditional textile and steel pipe industry, comprehensively focuses on the new Internet marketing track supported by big data, blockchain and 5G communications as the core technology, and strives to create a new 2B MCN model, which is expected to accelerate landing in shopping malls and other scenarios, benefiting the new trend of accelerated development of online marketing and the new 2B MCN model with high barriers based on the account system, which is expected to promote sustained and rapid growth of the company's performance. It is estimated that the company's operating net profit from 2020 to 2022 (excluding fair value changes and investment income such as holding Shangfeng cement shares) is 3.04,4.53 and 653 million yuan respectively, corresponding to 26 times in 20 years and 17 times in 21 years. With reference to the industry's average price-to-earnings ratio of 37 times earnings in 2021, the company aims to have a market capitalization of 16.9 billion yuan and a corresponding share price of 32.19 yuan, giving a "buy" rating for the first time.
Risk hint: the risk of business transformation, the risk of large balance of accounts receivable, the risk of market competition exceeding expectations, the risk of impairment of goodwill, and the divestiture of traditional business still need to be approved by the board of directors.
