Recommendation logic: the company is a digital commercial company driven by technology, content and data, realizing the layout of four business segments: brand marketing, effect marketing, short video marketing and e-commerce operation. With the help of the industry development Dongfeng, the company's short video marketing and e-commerce operation business has developed rapidly, driving the rapid development of the company's performance. The company attaches importance to scientific and technological innovation, forward-looking layout of big data, AI marketing, is expected to further increase market share.
To grasp the hot trends of the industry, short video marketing and content e-commerce have achieved preliminary results. At present, the pattern of digital marketing industry has undergone great changes under the influence of policy and science and technology. New forms of entertainment such as short videos and live broadcasts have led to the development of new forms of entertainment such as live streaming. The company laid out the short video marketing business in the fourth quarter of 2019, independently incubated and signed celebrities to build KOL matrix, supply chain and media integration platform, and continued to increase investment, with a team size of nearly 200 people and about 150 million fans. At present, the company's second MCN headquarters is officially stationed in Hangzhou Future Science and Technology City, starting a new journey of live e-commerce. We believe that the company's short video marketing and content e-commerce business has begun to take shape, which will help the company compete in the field of digital marketing, and the subsequent growth is worth looking forward to.
Continue to develop head customers, the advantage of customer resources is obvious. The company has strong customer resources, stable cooperation with brand enterprises and traditional media, more than 300 long-term cooperative media, and further expand the cooperative relationship with Douyin, Kuaishou Technology and other short video new media in terms of effect marketing. In the first half of 2020, the company's customer structure was further optimized, with new cooperation between technology giants such as Ant Financial Services Group and XIAOMI. Strong customer resources are expected to help the company expand the market and support the development of the company's content e-commerce business through an exclusive supply chain.
Forward-looking development of AI content implantation and the new retail big data business platform. 1) the company develops the application of AI in the content field, automatically generates creative short videos or pictures based on artificial intelligence technology, identifies video products with high marketing value, and realizes customized and large-scale advertising and e-commerce business delivery. In the future, it will effectively fill the market gap of content creative production and scene advertising under the background of 5G, and help the company improve its performance. 2) the company is committed to building a new retail ecological service platform of P2B2C model, realizing data accumulation and data return, feeding back efficient supply chain management, and realizing omni-channel enabling consumption. In the future, both AI content implantation platform and big data management platform will bring great competitive advantage to the company.
Profit forecast and investment advice. It is estimated that the return net profit of the company from 2020 to 2022 is 120 million yuan, 220 million yuan and 320 million yuan respectively, and the corresponding EPS is 0.44,0.83,1.16 yuan respectively. With reference to the comparable company's valuation, the company will be given a 25-fold PE in 2021 with a target price of 20.75 yuan per share, giving a "buy" rating for the first time.
Risk hints: the risk of industry policy change, the risk of intensified market competition, the risk of less than expected business development, the risk of core brain drain, the risk of asset impairment.
