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浙文互联(600986):2023优化主业结构 扩直播电商探索数字营销新阶段

Zhejiang Language Internet (600986): Optimizing Main Business Structure and Expanding Live E-commerce to Explore New Stages of Digital Marketing in 2023

華鑫證券 ·  Apr 25, 2023 13:15  · Researches

Zhejiang Interconnection released the 2022 Annual report and the 2023 Quarterly report announcement: the company's total revenue in 2022 was 14.737 billion yuan (an increase of 3.1% over the same period last year), operating costs increased by 4.69%, and sales and management expenses decreased by 13% and 4.8%, respectively. Return to the mother and deduct non-profit 0.81 and 69.57 million yuan (down 72.55% and 71.75% respectively) In the fourth quarter of 2022, the company lost 45 million yuan in parent profit (110 million yuan in credit impairment); in the first quarter of 2023, the company's total revenue was 2.796 billion yuan (down 31.5 percent from the same period last year), and the total operating cost decreased by 31.69 percent over the same period last year. The return to the mother and deduction non-profit were 0.3836 yuan and 37.73 million yuan respectively (up 8.4% and 5.5% respectively over the same period last year).

Main points of investment

In 2022, the main business was under pressure and landed in 2023. The homing profit increased in the first quarter compared with the same period last year.

In 2022, the revenue of brand marketing and effect marketing in the company's main digital marketing is 2.643 billion yuan and 12.046 billion yuan respectively (compared with the same period last year). The company still dominates in the field of automobile vertical marketing, and cooperative customers are constantly optimized. such as new energy car brands BYD, XPeng Inc., Changan New Energy and other customer resources In 2022, it was helped by Bank of China Ltd., Bank of Communications, XIAOMI brand, Wuliangye and other customer resources to make breakthroughs in finance, fast consumption and other industries, continuously consolidate the main industry, and maintain stability in customer cooperation. The improvement of the quality and efficiency of the performance marketing business under the new technology is expected to be highlighted. The company has maintained close cooperation with Toutiao, won a huge number of three-star service providers in Qianchuan under Douyin, silver brand service provider in Douyin e-commerce, and set up an overseas division. Red Flag overseas, Shortcut overseas projects help the company break the international ice.

The company's return profit in the first quarter of 2023 is 38 million yuan (an increase of 8.4% over the same period last year). In 2023, the company will not pursue simple scale advantages, but will optimize the main business structure to enhance the profitability of the main business.

Become the second largest shareholder of Zhejiang Institute and the next city of digital culture strategy.

In 2022, the company will become the second largest shareholder of Zhejiang Cultural property Exchange under Zhejiang Wentou Group. The company will give full play to the advantages of the state-owned assets platform and further strengthen the cooperation between the two sides in the business fields related to digital cultural copyright assets. At the same time, the company plans to invest an additional 800 million yuan (165 million shares with an average price of 4.85 yuan) to Zhejiang, and the proportion of shares invested in Zhejiang will be raised to 16.47% after the issue. the stability of the ownership structure can accelerate the business integration among the companies of the controlling shareholders. will help to enhance the core competitiveness of enterprises' long-term development.

Continue to promote Yuanyu 2023 to launch live e-commerce business to open new increments

The company practices the strategic development of digital culture and creates cases such as literature, travel and automobile meta-universe, which develops rapidly in the fields of digital people, digital collections, meta-universe creation tools and so on. Zhejiang Mita is positioned as a meta-universe digital art dreamer, and Midjourney achieves auxiliary creation in the field of AI painting to create a meta-universe creator community. We believe that new technologies need application scenarios, and the field of marketing is also an area where new technologies are better used, and new technologies and new applications are expected to drive new increments. The company's live broadcast e-commerce business has been continuously promoted since its launch in October 2023. In April 2023, the company laid out its own e-commerce business on the basis of the original live broadcast business, improved the connection of live rooms, short videos, goods and stores, and carried out large-scale expansion on the basis of the original Hangzhou live broadcast base to develop a global growth model. E-commerce business is expected to integrate the innovative application of AIGC and put into virtual anchors. Efficient collaboration to enable the development of live e-commerce business, create large-scale and professional AI digital human and meta-universe scenarios, provide users with a more interesting and immersive live streaming experience, and open a new stage of digital marketing.

Profit forecast

Based on the principle of prudence, the impact of fixed increase on the company's performance is not considered for the time being. it is predicted that the company's income from 2023 to 2025 will be 124.5\ 138.3\ 15.38 billion yuan, the parent profit will be 2.71\ 3.33\ 398 million yuan, and the EPS will be 0.21\ 0.25\ 0.3. the current stock price corresponding to PE will be 31.7\ 26\ 21.6 times, and the company will continue to consolidate its main business. The continuous layout of new business (from digital man to meta-universe expansion to new tool AIGC exploration), while the company has won the Hangzhou Asian Games and Asian Paralympic Games official online brand promotion service provider enterprise, with both main business restoration and new business, thus maintaining the "Buy" investment rating.

Risk hint

The risk of approval of non-public stock offering, the risk of core brain drain, the risk of accounts receivable, the risk of impairment of goodwill, the risk of concentration of media flow suppliers, the risk of tax policy, the risk of unexpectedly advancing new business, the risk of intensified market competition, the risk of fluctuation of COVID-19 epidemic situation, and the risk of macroeconomic fluctuation.

The translation is provided by third-party software.


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