Core ideas:
The company disclosed its annual report for 23 years: 23H1 achieved revenue of 1.959 billion yuan, YoY+14.0%; gross profit of 28.2%, down 3.5 pct from the same period last year; net profit of 55.56 million yuan, YoY+26.2%; deducted non-return net profit of 33.92 million yuan, YoY+38.5%. Q2 revenue and profit recovered year on year: Q2 revenue of 1.155 billion yuan, YoY+45.6%,QoQ+43.5%; return net profit of 29.43 million yuan, YoY+118.1%,QoQ+12.7%; deducted non-home net profit of 19.37 million yuan, YoY+1078.3%,QoQ+33.1%.
The recovery after the epidemic is more flexible, and the game remains robust. From the point of view of the business: (1) Games: revenue remains stable, actively expand on-screen interactive games and Wechat Mini Game. The revenue of 23H1 games is 252 million yuan, and the gross profit margin of YoY+5.4%, is 74.2%, which is basically the same as the same period last year. The net profit is 74.34 million yuan, which is slightly lower than the same period last year. (2) Culture Travel: the recovery of stock projects is strong, and the landing of new projects is promoted.
Tourism revenue is 105 million yuan, YoY+59.3%. Changsha window of the World net profit of 29.96 million yuan, YoY+1652%, hit an all-time high. The hotel income is 86.9 million yuan, YoY+16.4%.
23H1 St. Faith Hotel has an income of 81.19 million yuan and a net profit of 10.16 million yuan. (3) Venture Capital: the scale of management continues to expand, and the overall profit is relatively stable. Investment management income of 254 million yuan, YoY+10.6%. The cumulative fund size managed by 23H1 is nearly 50 billion yuan. (4) Advertising: high-speed rail media business has a certain loss, promoting the transformation and optimization of the business. The advertising agency has an operating income of 1.259 billion yuan, a gross profit of 0.02% for YoY+15.8%, (3.13% for 22H1) and a loss of 37.59 million yuan.
Profit forecast and investment advice: the recovery trend in the first half of this year is good, and is expected to continue in the second half of this year, various businesses in the basic market sound, orderly expansion of new incremental space. We estimate that the company's revenue for 23-25 years will be 4.404 billion yuan, 5.133 billion yuan and 5.805 billion yuan respectively, and the return net profit will be 287 million yuan, 461 million yuan and 602 million yuan respectively. Taking into account the company's resource advantages and new business development space, we will give the company a 24-year 25x PE with a reasonable total value of RMB115 billion and a "buy" rating of 8.13 yuan per share.
Risk tips: the landing of the cultural travel project is not as expected, the venture capital business is not as expected, the supervision is stricter, and so on.