Event: Lisheng Sports issued a 2023H1 performance forecast. The company expects 23H1 to achieve a net profit of 15.5 million yuan, an increase of 54.1612 million yuan over-38.6612 million yuan in the same period last year. It is estimated that 23H1 will deduct the non-return net profit of 13.76 million yuan, an increase of 54.2227 million yuan compared with-40.4627 million yuan in the same period last year. The net profit of 23Q2 is expected to be 5.2398 million yuan, compared with a loss of 23.3198 million yuan in the same period last year, and a loss of 24.2497 million yuan in the same period last year, deducting the net profit of 4.5836 million yuan in the same period last year.
After Q1 overseas events exceeded expectations, Q2 domestic events returned to normal, and high attention is expected to boost the company's performance. The company held three top events CTCC China Auto track Professional League in the first half of 2023. On May 13, Lisheng Sports's top IP event-CTCC China Motor track Professional League opened at Shanghai Jiading Station. Three years later, the Shanghai International Circuit welcomed spectators for the first time, and more than 60 participating vehicles and nearly 100 drivers participated in the event. On June 24, CTCC Shaoxing Keqiao Station was held at Zhejiang International Circuit, and the stands were opened to the public for the first time after the epidemic. On July 9, there were a total of 44 cars in CTCC Hunan Zhuzhou Station Super Cup-TCR China Series and Sports Cup-Yangtze River Delta Racing Festival, with nearly 60 drivers participating and 12000 fans arriving at the scene to watch the race. The gradual resumption of domestic events has attracted a lot of attention, and the new event IP is expected to contribute to the increase in the second half of the year.
The company is actively exploring the sports fitness + AI track, and continuous progress has been made in strategic cooperation. On May 25, Lisheng Sports announced that it signed a "Strategic Cooperation Framework Agreement" with Beijing Baidu, Inc. Netcom Technology Co., Ltd., based on Baidu, Inc. artificial intelligence model and Lisheng sports existing digital platform user movement behavior data precipitation, committed to the use of artificial intelligence technology to promote the development of sports multimodal model to achieve omni-directional three-dimensional cooperation On July 12, the company signed the Strategic Cooperation Framework Agreement with CCTV Yi Orange, and the two sides decided to establish a strategic partnership to complement each other's advantages and carry out all-round cooperation in national sports fitness, sports bank, digital VR live broadcast and other aspects. With the advantages of the company's local government national sports and fitness program, high-quality customer resources and advanced platform, as well as the advantages of strategic partners, the company is expected to quickly make a breakthrough in the sports + AI track.
Investment suggestion: the company is expected to achieve a revenue of 5.76 / 7.73 / 1.014 billion yuan and a net profit of 0.77 / 1.19 / 158 million yuan in 23-25, corresponding to a PE of 46.2 / 30.1 / 22.6X, maintaining the "overweight" rating.
Risk tips: macroeconomic is not as expected; new events incubation is not as expected; AI product research and development is not as expected.