The company's recent situation
On April 26, 2024, Hunan TV, Mango TV, Golden Eagle Cartoon TV, and Xiaomang e-commerce platforms jointly hosted the “Spring Breeze, Win with Love (AI)” Spring Investment Promotion Conference in Changsha, once again showing the overall results of their integration and future plans. A list of variety shows and series will also be released at the conference.
reviews
Explore the integration of culture and technology, and release cooperation plans for young directors and screenwriters. At the meeting, the company mentioned that the company is exploring effective mechanisms for integrating culture and technology, making every effort to build a state-owned digital intelligence superplatform and a digital cultural expo platform to create AI director Aimang and a big model of Mango. For example, the site focused on releasing the newly upgraded AI director “Aimang's 1% Rule”, an independent variety show “Aimang's 1% Rule”. This variety show is also a strategic product of Mango leading layout and ecology in AI content. We believe that AIGC is expected to improve the efficiency of content creation, shorten production cycles, reduce costs, and further promote the innovative development of the industry. As a leading long video platform, the company actively embraces new technology and is expected to benefit in the long term. In addition, the “Mangchong New Force - Young Director Screenwriter Cooperation Program” was also announced at the China Merchants Conference. It is recommended to focus on cooperation and innovation potential related to the upcoming drama section.
Variety: Ace Synthesis is fully innovative and is expected to continue to iterate. “Singer 2024” and “Endless Singer” focus on “People” and “Song” respectively. Among them, “Singer 2024” is scheduled to be broadcast on May 10. Other key shows include “Breaking Through Thorns: Double Star Season”, “Dance Madness”, and “First Time to Work · Captain Season”. In terms of innovative variety shows, “Splendid Garden” was launched on April 26. Outdoor/travel tracks include “Travel Any Door”, “City Hide and Seek”, and “Busy Treasure Hunt”; the company expects “Escape the Hate Island” to be launched soon; “Rubik's Cube New World” creates new content for the mystery series; Mango also focuses on the new variety show “Flowers Blooming · Country Season” focusing on the lives and careers of “village flowers” of different types and occupations in the new era. We believe that the company continues to invest in variety show themes and model innovation. If the external environment picks up, advertising revenue is expected to recover, and we will continue to monitor the progress of variety show investment.
Episode: Release 69 movies and TV series to continuously strengthen the membership business foundation. At the conference, Mango released a total of 69 movies and TV dramas, including “National Color Fanghua”, “Water Dragon Yin”, and “Long Song”. Among them, the company expects “Alley Renjia” and “Long Song” to be released during the summer; Mango also launched 5 new series brands, including the series “In Your Time” and “180 Day Restart Plan”. We believe that in 2024, the company may increase investment in quality series, cooperate more with leading companies in the industry chain, and consolidate the content base of the member business.
Profit forecasting and valuation
Keep profit forecasts unchanged. The current price corresponds to 19.2/17.6 times 2024/2025 P/E. Maintaining an industry rating and target price of 30 yuan, corresponding 25/23 times the 2024/2025 P/E, with 30.2% upside compared to the current price.
risks
The recovery in advertising investment has been slow, membership growth has fallen short of expectations, and content regulation has become stricter.