A leading pan-fashion data interactive marketing group in China, showing flexible business performance after the pandemic, Edway's promotion business covers experiential marketing, digital marketing and brand promotion, and has a number of top international IPs authorized in China. In 2022, experiential marketing accounted for about 10% of the market, ranking first. The company has a stable customer base, with more than 550 high-end global pan-fashion brand customers, covering more than 3.14 million high-net-worth customers. 2023H1 was accompanied by offline recovery. The company achieved revenue of 350 million yuan/yoy +103.5%, recovering to 90% in the same period in 2019, and net profit of 38 million yuan/yoy +547%, setting a new semi-annual performance high. We expect the company's net profit for 2023-2025 to be 1.06/1.42/186 million yuan, YOY +347.2%/+34.5%/+31.1%, EPS 0.15/0.21/0.27 yuan, and the current stock price corresponding to PE is 6.3/4.7/3.6 times, covering the first time, giving it a “buy” rating.
The marketing solutions market increased significantly. Team experience+customer resources+technology empowered to build a solid moat benefited from the continuous expansion and digital innovation of the luxury market. In 2014-2019, the marketing solution service market for high-end and luxury brands in Greater China increased from 16.9 billion yuan to 28.6 billion yuan, and the CAGR reached 11.1%. The CAGR is expected to reach 16.9% in 2022-2025, and the market size will reach 46.6 billion yuan in 2025, of which the marketing experience/digital marketing/public relations CAGR was 16%, respectively /20.2%/14.5% Company advantages: The team is experienced and the manpower is remarkable. It has abundant customer resources and maintained rapid growth, and has high customer stickiness. It has become Baidu Wenxin's first batch of ERNIE Bot ecological partners, which will empower the company's marketing experience and content creation.
Continuously explore diversified business layouts, and IP services contribute new volumes. The company uses data interaction as the core to build a positive cycle of resource circulation, and the three major businesses collaborate to promote sustainable development.
(1) Experiential marketing services: The company has now received a number of global and local marketing service projects, and has reached cooperation with Fulang Group to provide one-stop marketing services for Fulang Group and jointly explore and incubate new brands and expand new business models. (2) Digital marketing: The company continues to deploy in the AI+ metaverse field on the basis of expanding new customers. A strategic cooperation was reached with “For Fast Technology” and a co-creation agreement with Baidu and Xiyang, which are expected to expand new performance growth points. (3) IP business: The 2023 Tour de France and La Liga club races will resume, and high-margin, stable, high-quality businesses such as Shanghai Design Week (20) and Hong Kong Land Exhibition Hall operation (20 years) are progressing in an orderly manner, which is expected to contribute to greater performance growth in the future.
Risk warning: risk of macroeconomic fluctuations, risk of loss of customers, increased competition in the industry, etc.