Incident: Tianxiaxiu released its 2023 annual report and 2024 quarterly report. The company achieved operating income of 4.202 billion yuan in 2023, an increase of 1.77%; net profit to mother was 93 million yuan, a year-on-year decrease of 48.43%; in 2024, the company achieved operating income of 965 million yuan, an increase of 1.10% over the previous year; and net profit to mother of 0.15 million yuan, a year-on-year decrease of 23.18%.
The scale of celebrity marketing business is steadily expanding, and gross margins are under pressure in stages. In 2023, the company optimized the customer structure and deepened cooperation with brand customers. The revenue of the celebrity marketing platform increased by 3.67% year on year, and the cost side increased due to fluctuations in the market and economic environment. In 2023, the gross margin of the celebrity marketing platform business fell 3.79 pct to 17.90% year on year.
The marketing platform ecosystem is becoming more and more perfect, empowering all kinds of celebrities in all aspects. In 2023, the number of registered users of the company's WEIQ platform continued to increase. The cumulative number of registered celebrity accounts on the platform reached 2,935 million, the number of professional celebrity accounts with the ability to successfully accept orders increased by 432,000 to 1.469 million, and the number of MCN institutions that have entered the MCN increased by 2307 over the same period last year to 17,274. Thanks to the platform's efficient order matching mechanism and perfect transaction process, celebrities at the bottom of the waist can quickly enter to meet the marketing needs of merchants and have become an important source of revenue. In 2023, the share of revenue for those at the bottom of the platform reached 33.3%, an increase of 5.9pct over the previous year.
AI and overseas innovation business are worth looking forward to. Facing celebrities, the company enhances its marketing technology capabilities, leverages the advantages of the company's social marketing Chinese corpus, and develops the AIGC product “Inspiration Island”, making full use of the corpus advantages to provide celebrities with efficiency improvement services such as creative inspiration and business service recommendations. At the same time, the company launched the overseas marketing platform aDream in 2023 to provide brands and MCN organizations to go overseas to provide various efficiency improvement services such as building independent celebrity marketing sites, linking global celebrity resources to further expand the company's celebrity economic business scenario.
Profit forecast and investment advice: The company's business scale is expanding steadily in the context of market fluctuations, and profit margins are expected to continue to improve with the business layout and technological upgrades. The company's 2024/25/26 operating income is estimated to be 46.2/50.4/5.44 billion yuan, YoY +10%/9%/+8%, net profit to mother 1.6/23/3.3 billion yuan, YoY +145%/+42%/+40%, maintaining the “increase” rating.
Risk warning: Advertisers' campaigns fall short of expectations; innovative business development falls short of expectations.