The company released its three-quarter report on October 27th that the company's operating income in the first three quarters was 2.29 billion yuan, down 11.8% from the same period last year; its net profit was 488 million yuan, up 5.86% from the same period last year; and 457 million yuan was deducted from its non-parent net profit, an increase of 14.4% over the same period last year. Of this total, Q3's single-quarter revenue was 572 million yuan, down 22.8% from the same period last year; the net profit returned to the mother was 84 million yuan, down 45.71% from the same period last year; and the non-return net profit was 81 million yuan, down 48.2% from the same period last year.
Focus on copyright operation, expand new customers and copyright application scenarios
In the first three quarters, the company focused on copyright operation business. On the one hand, it continued to dig deep into the needs and cooperation of existing customers, strengthen the distribution of film library, and enhance its distribution capacity; on the other hand, it actively expanded new customers and carried out joint operations with partners such as Mobile Migu, Huawei and Kuaishou Technology. In addition, the company is also constantly exploring new copyright realization models, taking the family living room cinema as the scene to create a complete distribution system from content supply, publicity, broadcast, consumption settlement.
The leading position of new media copyright is stable, and the advanced layout is meta-universe.
The company is a leading film and television copyright operator, with more than 50,000 hours of content copyright library. In the short term, the company continues to expand new customers and dig deep into the value of copyright. Customers have expanded from video platforms such as "Youai Teng" to operators and hardware manufacturers such as XIAOMI, Huawei and Migu Video. With the continuous growth of the emerging mobile hardware ecology, it is expected to further expand to VR hardware manufacturers and new energy vehicle manufacturers in the future, bringing incremental performance for the company. In the long run, Shiyou Technology has been deeply engaged in the field of XR for many years, and has a number of independent intellectual property rights and patented technology in this field. With the arrival of the era of Web3.0, the application of related virtual technology of the company is expected to usher in new opportunities.
Earnings forecast, valuation and rating
From 2022 to 2024, we expect the company to achieve an operating income of 33.9% / 4.68 billion yuan, with a corresponding growth rate of-9%, 20%, 15% and a net profit of 7.57%, respectively. The growth rate corresponds to the current share price 7P5E.4 score / 1 of 9.4%, 13%, EPS15, and 1. 2 / Ref. 11 times. The company has a strong film and television copyright barrier, and ahead of the layout of the meta-universe format comparable company valuation, we give 23 years 21 times PE valuation, the target price of 7.4 yuan, to maintain the "overweight" rating.
Risk hint: the content supervision policy is stricter, and the film and television copyright contract is not as good as expected.