Report guide
In September 2020, the company negotiated and signed an "equity transfer agreement" with Guangdong Xinxuan Holdings Co., Ltd., which is controlled by Xin Youzhi, in which the company transferred 49% of its wholly-owned subsidiary Shengxun Yunshang to Xinxuan Holdings. At the same time, Xin Youzhi team joined Shengxun Cloud Merchants and carried out live e-commerce related business through Shengxun Cloud Merchants. The company also launched a restricted stock incentive program for the management of Shengxun Cloud Merchants in September, seeking to explore in the field of live e-commerce business.
Main points of investment
Simba team joined Shengxun Cloud Merchants with a net profit of 220 million yuan in 2021. In September, the company launched a restricted stock incentive program for the management of Shengxun Cloud Merchants. The number of restricted shares to be granted under the incentive plan is 8.4006 million shares, accounting for 9% of the company's share capital at the time of the announcement. The restricted shares granted by the incentive scheme will be unlocked in three phases, the unlocking condition is that the net profit of Shengxun Cloud Merchants needs to meet certain conditions, and the minimum net profit target for 2020-2022 is 0.2max 2200,000 yuan respectively.
The overall strength of the Xin Youzhi team is strong, representing the leading level of the live streaming industry Xin Youzhi team has a very high reputation on the Kuaishou Technology platform. From the point of view of the number of fans, Simba (Xin Youzhi himself) has 63.4426 million fans, even compared with other top traffic of Kuaishou Technology (Erdonkey, Sanda Brother, Little Yi). At the same time, Xinxuan team pays attention to matrix anchor training. Its anchors, such as Egg, Zhao Mengche, Shi Damei and Chen Xiaoshuo, all have tens of millions of fans and have a strong base for e-commerce to convert goods.
The Internet business based on game operation is the basic disk of the company.
At present, the company's main business includes three parts: game business, telecom value-added service and leasing business. Among them, the game business is the company's main source of income, including game operation business and entrusted development business, etc.; telecom value-added services for the company to obtain traffic and phone charges from the basic operators at a lower discount. The leasing business is mainly operating leasing, and the company leases its own property to the outside in order to obtain rental income.
Profit forecast and valuation
We believe that the Internet and leasing business of Shengxunda Company returned to order in the first half of 2020, and the business level is expected to achieve steady development in 2020; the selected team may enable the company to effectively explore in the field of live e-commerce, so as to effectively promote the company's revenue and performance. We expect the company's revenue to grow by 66.85%, 373.85%, 16.34%, to 3.6, 1704, and 1.983 million, respectively, from 2020 to 2022, with a net profit of 0.95, 312, 358 million, respectively, in 2020-2022. The combination of the company and Xinxuan shares may effectively improve the quality of the company's profits, and we believe that with the gradual release of the company's profits, it will raise the valuation center of the company, giving an "overweight" rating for the first time.
Risk hint: the development of live e-commerce industry is not as expected, and the progress of cooperation between the two sides is not as expected.
