Main points of investment:
The performance affected by the epidemic declined in 20 years, and the company gradually recovered in 21 years to achieve revenue of 1.996 billion yuan, a decrease of 11.03% over the same period last year, and a net profit of 53.95 million yuan, a decrease of 59.50% over the same period last year. The decline in revenue and net profit of the company in the past 20 years is mainly due to the impact of the epidemic, and the offline business operation has been affected to a certain extent; the first quarter of 21 has gradually entered the business recovery period.
In 2020, the sports business cluster advantage was established, and the business matrix more three-dimensional company completed a major asset restructuring in 20 years. At present, it has established the overall advantages of the sports business cluster, and the transformation and upgrading strategy with content and operation as the core. At present, the businesses covered mainly include: event activities, sports communication, education and training, sports lottery, phenomenal sports space platform, online digital technology platform, as well as brand operation, capital operation, standard certification, research and consulting, sports real estate, etc. Among them, the company has an absolute leading position in the field of domestic event activities, sports lottery, operation and management of stadiums and stadiums.
From a sub-business point of view, the company continues to carry out flexible business transformation + optimization in terms of event activities, the company has carried out flexible transformation and recovery of offline events in the past 20 years under the premise that the epidemic can be controlled. On the one hand, the company plans, organizes and implements "National Fitness and dynamic China" on the top of the Internet.
A series of mass sports events have set up a Chinese sports national fitness platform for local sports authorities to actively carry out online event activities. a total of more than 50 sports authorities have declared 89 series of event activities. in addition, the company has also launched "National Fitness Day" theme activities in more than 40 cities across the country, with a total of 1.6 million people participating in a variety of online and offline events and sports public welfare activities. On the other hand, the company held the 2020 Nanjing Marathon and the National Marathon Championship and the Guangzhou Marathon at the lower end of the line.
In terms of sports communication business, the company provides comprehensive sports marketing services with Tokyo Olympic Games and Beijing Winter Olympic Games as core events for corporate customers such as Bank of China, Yili, China Unicom, Toyota and Procter & Gamble. Create Olympic champion Tiantuan live broadcast, ice and snow youth camp, dynamic Winter Olympic College, online Olympic Day and other theme public relations activities, to provide market development consulting services for the 2022 Hangzhou Asian Games Organizing Committee And provide services for the sponsors of the Hangzhou Asian Games, the overall business operation continues to be stable and good.
Sports lottery business, the company has formed a sports lottery software service, sports lottery terminal equipment hard sales and maintenance, sports lottery printing and sales as one of the sports lottery industry service chain. Overall, the company's lottery business market performance is better than expected, lean production continues to deepen, reducing costs and increasing efficiency has become significant.
In terms of offline sports space platform, in the business of urban sports complex, based on the operation experience of Ningbo project, the company actively opened up the layout to the whole country, and set up relevant operation companies in Xinfeng, Yangzhou and Fengxian, Shanghai. in terms of sports town business, we will coordinate and promote the planning, construction, operation and other work of Tongshan sports town project. In terms of large-scale public sports venues business, the company deeply explored business transformation, reduced costs and increased efficiency, and successfully hosted the third Wuqing Sports and Cultural Festival, the 13th Jiujiang Games, Baotou hiking, Foshan Dragon Lion Project and other activities. and completed the equity acquisition of Nanjing Sports Group Stadium Operation Co., Ltd., won the bid for Tianjin Olympic Sports Center Skating Gymnasium rental project, Anhui Xuancheng Sports Center operation and management project.
In addition, the company established Zhongtian Mathematical Science Company in 20 years, and the first phase of the independently developed stadium operation and management platform-Zhongtianyun Gymnasium has been launched on a pilot basis in Jiangsu Yizheng Comprehensive Gymnasium. The company's certification and standardization business has obtained the laboratory certification certificate issued by the International Basketball Federation ((FIBA)) and has become a third-party testing laboratory approved by FIBA.
In the past 21 years, the company has entered a new round of strategic transformation and development period.
In terms of transformation and development, 2021 is an important strategic transition for the company. The company's board of directors put forward the "China Sports Industry Group" Sailing struggle Action platform (2021-2023) ", which insists on attaching equal importance to both economic and social benefits. starting with the four sectors of sports activities, sports communication, education and training and sports lottery, and based on offline sports space platform and online digital technology platform. Create brand operation, capital operation, standard certification, research and consultation as the four key points, accelerate the transformation and upgrading of the company's overall sports business matrix, and strive to occupy the leading position of each track.
Investment rating and profit forecast
On the whole, we believe that the offline events and venue operations of the company in the past 20 years have been affected by the epidemic, and it is expected that the overall business operation of the company in 21 years will gradually return to the right track. continue to be optimistic about the company's sustainable layout and comprehensive competitiveness in the sports industry, 21 years the company has entered a new round of transformation and development period, its potential in the future sports business layout will continue to be tapped and released. We continue to give the company an investment rating of "overweight". It is estimated that the company's EPS will be 0.08,0.12 and 0.14 yuan per share respectively from 2021 to 2023.
Risk hint
Industrial policy risks, business development is not up to expectations, major changes have taken place in operation, the real estate industry remains in the doldrums, and epidemic control has led to the continuous postponement of sports events.
