Event: the company released its semi-annual report for 2022. During the reporting period, the company achieved operating income of 4.302 billion yuan, 21.84% of the same period last year; net profit of 56 million yuan, 30.01% of the same period last year; net profit of 56 million yuan, 31.49% of the same period last year; gross profit of 14.67%, net profit of 1.15% of 3.15pct and 0.26pct of the same period. In the first half of the year, the frequent disturbance of the epidemic situation, the reduction of customer marketing demand led to a decline in operating income, and the optimization of the main brand marketing business led to an improvement in overall gross profit. The operating cash flow of the company's 2022H1 was-388 million yuan, down 256.64% from the same period last year, mainly due to a large number of payments due to suppliers.

Tamp the main internal strength of marketing, "meta-universe + marketing" opens a new space. As an exclusive provider of official communication agency service for the Beijing 2022 Winter Olympic Games and Paralympic Games and an international public relations service provider, the company has participated in the service guarantee work with high quality, high standards and high efficiency. The global audience of the Beijing Winter Olympic Games has repeatedly reached record highs, and it has become the session with the largest number of viewers on the digital platform, confirming the company's excellent marketing strength. At the same time, the company is actively exploring the diversified business scene of "meta-universe + marketing": ① underlying technology: the company jointly released the "Meta-Universe Development Research report 2.0" by Tsinghua University, and was elected as a formal member of the Meta-Universe Industry Committee of China Mobile Limited Communications Federation, and cooperated with China Mobile Limited, Shanghai Burning Mai and other domestic meta-universe leaders. ② application scene: create a closed loop of "content production-marketing-payment transaction". The company's new picture Wenchuang has been authorized to issue digital collections from the Qin Mausoleum Museum, and its company, the Forbidden City Lantai Culture and the Imperial Palace School's development and operation of the Imperial Palace Cloud course APP issued a digital micro-chapter. ③ trading link: sign the "Digital RMB closed Experimental Framework Agreement" with Industrial and Commercial Bank of China and jointly carry out digital RMB closed experimental cooperation.

Create the P matrix of digital culture and explore the new generation of digital business format. The Central Office and the State Office jointly issued the opinions on promoting the implementation of the National Cultural Digitalization Strategy, vigorously promoted the National Cultural Digitalization Strategy, and made it clear that the cultural digitization infrastructure and service platform would be basically completed by the end of the 14th five-year Plan period. the formation of online and offline integration of interactive, three-dimensional coverage of cultural service supply system.

The company leads and participates in the production, production and distribution of pan-entertainment animation, digital collections, games, cultural education, virtual people and XR and other digital content, and develops independent IP property rights image content, trying to break the boundary between virtual and reality, and innovate scenes with the new generation of consumers.

Investment suggestion: as an established global marketing company, relying on the strong P matrix, the qualification barrier of digital RMB, the technical resources of virtual human, and the underlying technology support of China Mobile's digital business, the company takes meta-cosmic ecology as a new communication carrier, has a strong first-mover advantage and resource endowment in the process of building the application scene of cultural digital system, and is optimistic about the commercial potential of the company to create a new digital ecology in the future. Considering that the performance is affected by the epidemic, we adjust our profit forecast. It is estimated that the return net profit of the company in 22-24 years is 2.47max 3.77 / 442 million yuan respectively, EPS is 0.97 shock 1.49 shock 1.75 yuan, corresponding to PE is 17-11-9 times, maintaining the "buy" rating.

Risk tips: the repeated impact of the epidemic, the promotion of new business is not as expected, and industry competition aggravates the risk.