This report is read as follows:
The company's convention and exhibition business has fully recovered, and all indicators of its main business are better than the same period last year; in addition, it acquires Tabos, the subject of high-quality exhibition, and makes a strategic investment in Huijietong exhibition to contribute to future performance increment, which is optimistic about the continuous improvement of the company's competitiveness.
Main points of investment:
Maintain and increase holdings. Taking into account the full recovery of business, the annual EPS in 23-24-25 was maintained at 0.54, 0.58, 0.61 yuan. Give the industry average 28xPE valuation in 2023, maintain the target price at 15.08 yuan, and maintain the increase in holdings.
Performance summary: in the first three quarters of 2023, the estimated revenue is 963 million yuan / + 356.40%, the return net profit is 242 million yuan, and the non-return net profit is 161 million yuan / + 646.06%.
The company's Q3 main income is 398 million yuan / + 306.83%, the mother net profit is 49 million yuan / + 55.11%, and the non-net profit is 51 million yuan / + 61.90%.
The main business has been fully restored, and the two major strategies have been continuously promoted to enhance competitiveness. Affected by the epidemic in the same period of last year, the income of the convention and exhibition business decreased, resulting in a loss in operating performance; the exhibition business recovered in an all-round way, and all the indicators of the main business were better than those of the same period last year. The company firmly promotes the strategy of "exhibition China" and "digital exhibition", explores the brand operation path, actively promotes the regional replication strategy of core business brands, and constantly enhances the core competitiveness of exhibition business.
Benefiting from the company's professional investment and operation, non-operating profit and loss increased significantly. Due to the fluctuation of the secondary market, the fair value change income of financial assets held by the company increased compared with the same period last year, and received the investment allocation of Shanghai Huaduo Equity Investment Fund Partnership (Limited Partnership). This period received compensation for the house collection of Shanghai Wentai Sports shoes Factory.
Risk hint: macroeconomic downturn, IP influence weakening; strategic promotion is not as expected.