销售/ 管理/ 研发/ 财务费用率4.16%/4.79%/0.78%/2.24% ， 同比+1.47/-4.33/+0.48/+0.19pct。管理费用率下降主因22 年摊销限制性股票激励费用较大，23 年激励条款未达成不再摊销。24Q1 营收同增0.93%，归母净利同降25.73%，毛利率29.15%，同降5.89pct，主因22Q1 腾讯采购老片库营收贡献较大，该部分因成本较低，毛利率较高。23 Net profit of 450 million yuan, down 13.55% from the same period, maintaining the “buy” rating.
The company released its 23 annual report & 24Q1 quarterly report: 23 billion yuan in revenue of 2.8 billion yuan (yoy -28.33%), net profit of 450 million yuan (yoy -13.55%), net profit of 439 million yuan (yoy -5.98%); 24Q1 revenue of 676 million yuan (yoy +0.93%), net profit of 117 million yuan (yoy -25.73%), net profit of 117 million yuan (yoy -23.49%). The decline in performance in '23 was mainly due to the impact on the copyright drama business. We expect the company's net profit from 24-26 to be 593/688/761 million yuan. Comparatively, the company's 24-year Wind unanimously expected the average PE value to be about 28X, giving the company a 24-year PE 28X with a target price of 6.16 yuan, maintaining a “buy” rating.
The decline in performance in 23 is mainly due to the relative contraction of the copyright drama business due to downstream effects. 24Q1 revenue has stabilized at around 88 million yuan in 23 years, and net endogenous profit after exclusion is about 538 million yuan (about 756 million yuan after deduction of impairment in '22), which is about 29%, which is basically in line with the decline in revenue. The decline in revenue in '23 was mainly due to the long video platform promoting cost reduction and efficiency, increasing the budget for homemade dramas and custom-made dramas, and drastically reducing the company's revenue for copyrighted dramas. The consolidated gross profit margin in '23 was 31.5%, down 0.29pct.
Sales/ Management/ R&D/ Finance Expense Ratio 4.16%/4.79%/0.78%/2.24%, +1.47/ -4.33/+0.48/+0.19pct. The decline in the management fee rate was mainly due to the high cost of amortization of restricted stock incentives in '22, and the 23-year incentive clause did not reach no more amortization. 24Q1 revenue also increased by 0.93%, net profit to mother decreased by 25.73%, gross profit margin 29.15%, and the same decrease of 5.89pct. The main reason was that Tencent contributed significantly to the revenue of the 22Q1 procurement of old film libraries. This part was due to lower costs and higher gross margin.
Proposing a new “two wings in one” development strategy
In '23, under the strategic goal of “becoming a digital culture industry group with international innovative technology,” the company proposed a new “integrated two-wing” development strategy of “resource-based copyright business as the main body plus AIGC and innovative business as the two wings”. Focus on the main business, adhere to “content copyright operation” as the strategic core, and further focus the business on new media copyright operation and distribution; at the same time, build two wings: 1. Increase R&D in the AI field to empower copyright operations; 2. Actively cultivate innovative businesses and create a second growth curve. This includes cultivating new business models around copyright and actively developing innovative copyright businesses such as digital marketing, film and television distribution, overseas content, short dramas, and short length applets.
Using ChatPV as an incision, deep layout of AIGC
On March 15, the company held a press conference to officially launch ChatPV, an AI intelligent creation engine. ChatPV is based on multi-modal large model capabilities, and can automatically process large amounts of images and video materials. It supports various application scenarios such as automatic film creation, long video reduction, automatic dubbing, automatic subtitling, etc., and can be widely used in various scenarios such as news reports, short video production, second generation of movies and TV dramas, and VLOG video generation, greatly improving video creation efficiency. We believe that ChatPV is an iconic node achievement for the company to fully embrace AI, and is expected to continue to iterate in the future, empowering the development of the main business.
Risk warning: AI product development falls short of expectations, and the film and television industry's recovery falls short of expectations.