The company is a comprehensive provider of “digital creative products and digital integrated solutions”. The products are widely used in digital government, intelligent manufacturing, smart transportation, smart water, smart energy, smart parks and digital villages. Founded in 2002, Fantuo Digital Innovation focused on digital creative business. It was the first company in China to develop 3D structural drawings and 3D renderings design in the construction field. It has continuously provided digital creative display services for the Beijing Olympics, Shanghai World Expo, Guangzhou Asian Games, and Haiyang Asa Games. After 2012, the company launched a digital integrated integrated service business, developing fields such as museums, city halls, corporate halls, etc. Representative products include the Guangzhou Branch of the China National Version Museum and the Cantonese Opera Art Museum. After 2018, the FT-E digital twin platform independently developed by the company was widely used in smart cities, smart parks, smart workshops, etc., while also opening metaverse pavilions and virtual digital human businesses.
3D content assets are well-stocked. The company has rich experience in 3D content production. The company has accumulated rich experience in 3D content production over the past 20 years of development, and has a wealth of 3D data assets, including models, material libraries, and cases, from 3D architectural drawings, multimedia images to virtual scene construction. The current application scenarios of MR are mainly To B and To G, while To C's application scenarios are still in the early stages and mainly in games.
The company's 3D content assets are very suitable for current VR application scenarios centered around ToB and ToG. Benefiting from further development of equipment, it is expected that 3D content assets can be monetized. If the C-side scenario starts up in the future, the company's production capabilities are expected to be quickly ported to the C-side. Furthermore, 3D content production itself has a certain technical threshold, and the company has a good position in this field, forming a double barrier of asset+technology.
Self-developed digital twin FT-E platform, business moved from non-standard to standardized. The company focuses on developing digital twin platforms. The self-developed platform has been certified by major manufacturers such as Huawei, and can be operated on PCs, pads, and mobile phones. The company's area of strength lies in culture, culture and expo, and is expected to expand intelligent manufacturing, transportation, environmental protection and other industries in the future. Currently, the investment in the digital twin underlying platform has basically been completed. As application scenarios in the vertical industry continue to open up, the company is moving from a non-standard project system to a standardized platform system, and it is expected that it will enter a profit release period in the future.
Investment advice: The company has rich experience in 3D content production and reserves rich 3D data assets.
Currently, MR application scenarios are mainly to B and to G. To C is in the early stages, but the company has good card slots. In the future, it is expected that it will benefit from the launch of equipment and achieve rapid monetization of 3D content assets. In addition, its content production capabilities are also expected to be quickly ported to the C side. The company is expected to achieve net profit of 14 million yuan, 63 million yuan, and 106 million yuan in 2023-2025. The current stock price corresponding PE is 201x, 43x, and 26x, respectively. It is covered for the first time, giving it a “careful recommendation” rating.
Risk warning: Risk of project progress falling short of expectations, risk of repayment, risk of innovation.