The company ploughs the field of sports Noumenon, the head resource barrier is significant, the layout of the whole industry chain is gradually becoming, the industrial clusters work together, and the leading position is stable. The recovery of sports economy after the epidemic is flexible, the policy has a strong long-term tendency, the market prospect is broad, and the growth potential is promising. Cover for the first time and give an overweight rating.

Support the main points of rating

The resource barrier is significant, and the leading position is stable. As the only listed company under the General Administration of Sports, the company has the head sports resources such as domestic boutique events, and has intangible assets resources such as international and domestic authoritative and popular sports institutions and organizations. 25 years of intensive cultivation has enabled it to accumulate rich operation experience in the industry. Now the company has established a good brand credibility and market recognition, and has high barrier core competitiveness in scale, efficiency, brand and other aspects, and the industry leading position is stable.

Sports core of the whole industry chain layout, cluster coordination and complementary advantages are outstanding. The company has ploughed the sports industry for many years, gradually forming a business layout covering the core industrial chain, such as event activities, sports communication, sports space, lottery-related, certification and testing, education and training, etc., forming a strong business cluster advantage, conducive to achieving the optimal allocation and integration of resources, giving full play to complementary advantages and synergy, promoting the transformation and upgrading of the company's overall business, and cultivating the sustainability of the company's performance growth.

It is good to undertake the policy, and the long-term growth potential of sports economy is expected. In the short term, the post-epidemic sports economy is expected to achieve a highly elastic recovery; in the long run, macro policies continue to encourage and support the development of the sports industry, sports economy has broad prospects. As an industry leader, the company first undertakes the benefits of industry recovery and policy stimulus, and will usher in a large number of development opportunities both in the short term and in the long term. During the epidemic period, the company continues to expand the layout while reducing costs and increasing efficiency. The landing of new projects and the resumption of operation are expected to thicken the company's performance, bring a large increment and open up the growth space.

Valuation

The company has ploughed the sports industry for 25 years, backed by the State General Administration of Sports, has significant resource advantages, and has a stable leading position; it has the layout of the whole sports industry chain, and the synergy and complementary advantages of industrial clusters are significant, and the landing of new projects is expected to open up the growth space; the sports economy is expected to rebound quickly after the epidemic in the short term, strong policy support in the long run, and broad market prospects, and the company is expected to undertake dividend growth potential. We estimate that in 23-25, the company's income will be 1.815 pound 1.973 billion yuan, the net profit of return to the mother will be 0.61 pound 0.87 billion yuan, the EPS will be 0.06 pound 0.09 pound 0.12 yuan, and the corresponding Pamp E will be 149.5 pound 104.9pm 82.1 times. Cover for the first time and give an overweight rating.

Main risks faced by rating

Policy risk, business diversification risk, the new project does not meet the expected risk.