Description of the event
On March 5, the company issued an action plan on “improving both quality and return” based on development strategies, business conditions and financial conditions to safeguard the interests of all shareholders, enhance investor confidence, and promote the company's high-quality development.
Incident comments
Seize the winners and losers of “culture+technology” and accelerate the development of media integration. The company insists on building multi-platform collaborative development advantages through deep media integration, stimulating vitality within the core industry through content innovation and upgrading, and promoting diversified development of emerging business formats through ecological collaboration. In the context of new ecology and new technology, we fully stimulate the development vitality of emerging business formats, actively seek technological empowerment to improve quality and efficiency, seize the winners of “culture+technology”, and defend the leading position in content innovation.
Accelerate the cultivation of new quality productivity in the cultural media industry, and continue to consolidate the mango ecological moat. The company continues to use content innovation as a breakthrough to create high-quality content in variety shows, movies, short dramas, children's animations, etc., to form a content industry cluster with Mango characteristics. At the same time, it closely follows the main line of “cultural and technological integration”, explores the application of AI in program production, and innovates XR device gameplay to improve the business model, user experience and efficiency. The company will launch a “mango pendulum model” based on existing technical foundations such as AIGC, virtual reality, and AI multi-modal search, and build an AI Agent intelligent application platform to widely use AIGC technology in media operations, advertising, and content production. Explore AI alternatives in program production and production, build a site-wide AI character interactive ecosystem, seek more innovative gameplay with next-generation spatial computing devices (XR), strengthen the integration of new technology with program shooting and production, and play a greater role in innovating business models, improving user experience, and helping improve quality and efficiency.
Focus on consolidating the foundation of high-quality development and governance, and actively conveying long-term investment value. The company will continue to consolidate the foundation of governance, strengthen board building, innovate the supervisory board performance model, establish market-based incentive and restraint mechanisms, broaden channels for investors to participate in corporate governance, and provide institutional guarantees for high-quality development. The company implemented stable cash dividends. The total amount of profit distributed in cash in the last three years was 718 million yuan, accounting for 41.51% of the average annual profit distributed in the last three years; the controlling shareholders promised not to reduce their shares in listed companies in any way for 12 months from August 28, 2023, to express confidence in the company's stable future development.
The membership business continues to break through, creating a “1+1+1+1" superhero ecosystem. The company achieved revenue of 14.631 billion yuan in '23, an increase of 4.68% over the previous year, mainly driven by membership growth. By the end of 23, the number of active members reached 66.53 million. Member revenue reached 4.315 billion yuan, up 10.23% year on year. Among them, 23Q4 revenue increased 35.76% year on year. Innovative content and high-quality channels worked together to enter a new stage of high-quality development. The company will continue to explore diversified development paths, give full play to the effects of “four platforms” business collaboration and resource integration, and build a “1+1+1" superior ecosystem.
Profit forecast: We continue to be optimistic about the company's performance growth enabled by S-grade variety encryption, drama breakthroughs, forward-looking skit layout, and AIGC and MR technological innovation. The company is expected to achieve net profit of 2,160 billion yuan and 2,523 billion yuan in 24-25 years, corresponding to current PE of 22/18X, respectively, maintaining a “buy” rating.
Risk warning
1. Risk supervision risk;
2. Variety shows and series broadcasts fall short of expectations.