Event: according to the company's Wechat official account, the signing ceremony of strategic cooperation between Xi'an Performing Arts Group and Dafeng Industry was held in Hangzhou on July 4. The two sides conducted in-depth sharing and exchanges around the common development of ecological cooperation, high-quality development of enterprises, industrial empowerment and so on.
Comments: strong and strong join hands to help the strategic transformation. Xi'an Performing Arts Group and Dafeng Industry are both cultural enterprises. Through this strategic cooperation and resource sharing, Dafeng Industry is expected to provide quality services for Xi'an Performing Arts Group with technological advantages such as the construction of cultural and tourist venues, the integration of culture and tourism, and the technology of digital arts and technology.
The business of sports, science, technology and equipment continues to develop. In 2022, the company successfully delivered many landmark or major influence projects, such as the Winter Olympic Games, the opening ceremony of the Winter Paralympic Games, Hangzhou National version Hall, Hangzhou Electronic Competition Hall and so on. The company continued to make efforts to "Belt and Road Initiative" and issued an announcement on June 20, 2023, signing a contract with a Russian company for the project of Sirius Theatre and Concert Hall complex in Sochi, equivalent to 278 million yuan. With the continuous deepening of Belt and Road Initiative, the company's overseas orders are expected to continue to break through.
The business of digital technology is developing rapidly. The overall revenue of digital technology business in 2022 was 400 million yuan, a year-on-year increase of 122%. According to the company's official account, a press conference on the new business strategy of Dafeng Sports and Sports Brigade was held in Hangzhou. At present, Dafeng Industry has entered the construction stage of the new business scene of the Strategy 2.5 Sports Brigade. Its own operation scene and mature digital business model have been formed in the cultural, sports and tourism scenes. Starting with the contents of repertoire, performing arts, teaching and research, and IP creation cooperation, it will attract many cultural consumption flows to accumulate data. Continuously improve the level of digitalization and intelligence in the stylistic travel scene. On April 5, 2023, according to the company's official account, the copyright of the novel "wandering the Earth" is officially authorized exclusively by Dafeng Industry, which will be presented in the form of pan-entertainment projects such as live entertainment, stage dramas, immersive acting and so on.
"Sports and sports brigade innovation and technology + stylistic brigade enabling service" two-wheel drive. The company is actively expanding to the upstream and downstream of the sports and tourism industry chain, transforming from high-end smart manufacturing to content creativity and operational service industry. In the aspect of digital technology, the company quickly excavates and integrates the needs of users, and provides creative planning and technical implementation solutions.
In 2022, "Tonight Xixi" maintained its normal performance throughout the year, and the number of viewers exceeded 254%.
The number and scale of venues have increased significantly, and they have successfully won the operation rights of Wenzhou High-tech Culture Plaza and Hangzhou Asian Games Exhibition Hall. The company has performance content procurement channels all over the world, and the exclusive introduction of projects accounts for more than 20%. On this basis, it cooperates with well-known directors at home and abroad to arrange and produce self-made repertoire.
Coverage for the first time, giving the company an "overweight" rating. It is estimated that the company's net profit from 2023 to 2025 will reach 3.99,5.82 and 712 million yuan respectively, an increase of 39%, 46% and 22% over the same period last year, with a corresponding valuation of 17, 12 and 9 times.
Risk hint: downstream demand is lower than expected, valuation and profit forecast are not as expected.