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浙文互联(600986):单季度毛利率提升优化主业提内力 践行数字文化战略

Zhejiang Cultural Internet (600986): Increased gross margin in a single quarter, optimization of main business, enhancement of internal strength, implementation of digital culture strategies

華鑫證券 ·  Oct 31, 2023 08:56

Zhejiang Internet released the third quarterly report of 2023: the company's revenue in the first three quarters of 2023 was 8.24 billion yuan (- 27.5% compared with the same period last year), and the return to the mother and deduction of non-profit was 1.14 yuan and 112 million yuan (8.65% compared with the same period last year), and the net operating cash flow in the first three quarters reached 520 million yuan. For a single quarter, the total revenue and total operating cost in the third quarter of 2023 were 25.18 and 2.471 billion yuan (year-on-year-30.6% and-31.4%), and the return and deduction of non-profit were 0.43 and 43 million yuan (year-on-year-29.04%,-11.21%, month-on-month + 32.2% and + 34.5%).

Main points of investment

2023Q3 homing and deducting non-profit increased by + 32%, + 34% quarter-on-quarter profit improved gross profit margin double rise, the main industry is expected to continue to improve

2023 the company's total revenue and total cost decreased both year-on-year and month-on-month in the third quarter, which is also in line with the company's overall strategy in 2023 is not to pursue simple scale advantages, but to optimize the main business structure to improve the profitability of the main business. In the first half of 2023, the company's customer structure was further optimized. In addition to traditional automobile brands, customers expand in new energy vehicles, communications, finance, fast consumer, e-commerce, games and other industries. New energy cooperation in the field of BYD, Changan New Energy, Cyrus, XIAOMI and other customers.

2023 China News Company's active optimization of effect advertising led to a decline in revenue. In the third quarter, the company continued this trend by initiatively shrinking and adjusting the low-margin business of the effect marketing plate and strengthening cash flow management. Furthermore, the company's return to the parent and deduction of non-profits increased month-on-month. And in the third quarter of 2023, the company's sales gross profit margin and net profit margin were 6.94% and 1.62% respectively (up 2.93% and 0.02% compared with the same period last year), and the profits of the main business are expected to continue to improve.

Strengthen cash flow management in 2023, the net operating cash flow reached 520 million yuan in the third quarter; in 2023, the company completed its fixed growth (mixed reform enhanced capital strength), and the company's monetary capital reached 1.057 billion yuan. The follow-up is expected to mainly invest in technology upgrading and innovation business plate, the company will continue to strengthen the digital culture plate, to help the company from digital marketing to smart marketing ecology, and then to the advanced digital culture.

▌ with AI Xu Li is expected to become an important engine of the company's new journey. The company's digital culture strategy is the next city.

The successful completion of the increase in August 2023 will bring capital supply and resource tilt to the development of the AI track, which will help to promote the innovation of the company's business model, business upgrading and the reform of the development system. As the main platform of digital culture and technology under Zhejiang Investment, the company will pry the new market with AI as the fulcrum. The development path of the company's "AI+ innovation business" is becoming clearer, with the establishment of a multi-modal AIGC digital tool matrix for pictures and scenes, the completion of meta-universe innovation business infrastructure such as virtual human, virtual space and virtual property, and the layout of subdivision tracks such as automobile meta-universe, literature and travel meta-universe, virtual human, AIGC creator community, live e-commerce, etc., with AI to create the second growth curve.

Profit forecast

The forecast company's income from 2023 to 2025 is 124.5\ 138.3\ 15.38 billion yuan, the return profit is 2.71,3.3 and 398 million yuan respectively, the EPS is 0.18,0.22,0.27 yuan respectively, and the current stock price corresponding to PE is 29.9,24.6,20.4 times respectively. As a leading enterprise in digital marketing and digital culture, it continues to consolidate the position of Zhejiang Wentou's "main platform of digital culture". The company will continue to use the "AI+" model to empower the digital culture industry, thereby maintaining the "buy" investment rating.

Risk hint

The risk of intensified market competition, the risk of core brain drain, the risk of accounts receivable, the risk of impairment of goodwill, the risk of concentration of media flow suppliers, the risk of tax policy, the risk of less than expected promotion of new business, the risk of COVID-19 epidemic fluctuation, the risk of macroeconomic fluctuation.

The translation is provided by third-party software.


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