With a 20-year high increase in revenue and a return to profit, 21Q1 continued the high growth trend and released a 20-year annual report to usher in a turning point, with annual revenue of 5.596 billion yuan, an increase of 86.55% over the same period last year, and a net profit of 102 million yuan (vs lost 211 million yuan in the same period last year), deducting 18 million yuan in non-return net profit (vs lost 238 million yuan in the same period last year). 21Q1 realized revenue of 1.328 billion yuan, an increase of 70.62% over the same period last year, and a net profit of 15.734 million yuan, an increase of 80.3% over the same period last year, deducting 9.9207 million yuan of non-return net profit, an increase of 123.7% over the same period last year.
The performance growth in 2020 mainly comes from: 1) seizing the short video dividend expansion team and actively laying out effect marketing, celebrity marketing and content e-commerce; 2) the sustained and healthy development of brand marketing business and the depth of cooperation with online service, new domestic products and new consumer brands. 3) the reason for deducting non-return is that the subsidiary has not fulfilled its performance commitment, and the performance compensation of 63.31 million yuan is included in non-operating income (non-recurrent profit and loss).
Quickly cut into short video creative content, celebrity marketing and content e-commerce company's main business from content marketing and digital marketing-based integrated marketing services, gradually expanded to more accurate effect marketing, celebrity marketing and e-commerce integrated service services. In the past 20 years, the company's brand marketing (traditional media) business income was 612 million yuan, accounting for 10.94%, while the digital marketing business income was 4.978 billion yuan (including APP commercialization, effect marketing, celebrity marketing, etc.), accounting for nearly 89%.
Pay close attention to the media dividend of the new media head and build a global marketing service system in terms of effect marketing. By the end of 2020, the company's effect team has set up a complete service structure of a team of 100 people. built sales, operation, short video workshop, media, service five systems, a total of nearly 17000 original content of short video advertising. Accumulatively serve more than 200 customers. The company has cooperated with more than 300 media for a long time, and has won the honors of "Best Agent partner" of Mango, "Outstanding performance Award" of Tencent, and "Super Marketing partner" of BABA's mother's global digital marketing.
In terms of celebrity marketing and content e-commerce, the company set up 100-person teams of celebrity marketing and content e-commerce in Beijing, Hangzhou and Jinan in 2020. In terms of cooperative network celebrities, the company signed contracts with stars such as Chen Zhipeng and Deng Sha, to form a celebrity matrix covering a number of vertical content; in terms of business customers, the company accumulated content e-commerce to sell nearly 1000 SKU of goods; at the same time, the company has completed the exclusive supply chain cooperation of more than 30 SKU, including brands such as Pu Erjia and Renhe Group, around the Douyin platform, which will gradually expand to other platforms such as Kuaishou Technology and Xiao Hongshu in the future.
Investment advice: the company's revenue will grow rapidly in 2021, while the expansion of new business will also bring the impact of gross profit margin and expense rate. Combined with the company's January employee incentive program, we adjust the company's return net profit from 2021 to 2022 to 189,259 million respectively, and the current market capitalization corresponds to 15 times of 2021's Pmax E, taking into account the company's rapid growth and the flexibility of e-commerce services, it is given 25 times Pmax E in 21 years to maintain the "buy" rating.
Risk hints: new business development falls short of expectations; subsidiary performance falls short of expectations; market competition intensifies wealth
