Recommended logic: 1) 2021 will welcome the sports year, with the marginal improvement of COVID-19 epidemic, the sports sector may hit bottom and rebound, it is suggested that the key configuration. 2) the company has formed the layout of the whole industry chain with copyright operation as the core, with outstanding resource endowment, and is expected to go abroad to become a leading intercontinental sports enterprise. 3) Sports, film and television business will enter the equity realization cycle, the certainty of performance rebound is high, and the corresponding valuation is only 18 times in 2021.
The epidemic has dealt a heavy blow to the sports industry and has remained promising for a long time. The epidemic situation of COVID-19 has a serious impact on the sports industry, and its adverse impact has penetrated into the price system of upstream factors of production. Considering that the willingness of the masses to watch the game remains at a high level, we believe that after the short-term shock, the sports industry will gradually return to the normal level.
In addition, the sports sponsorship market, as the core source of income of the sports industry, shows strong resilience. According to (ESA), the European sponsorship association, the total value of the European sponsorship market fell 23 per cent year-on-year to 23.63 billion yuan in 2020, while the total value of sports sponsorship market fell only 9 per cent year-on-year to 18.42 billion euros, which is still the main force in the European sponsorship market. The main reason behind this is that sponsors highly recognize the core values of sports events and are willing to maintain a long-term and stable cooperative relationship.
2021 will welcome the sports year, plate suppression factors are expected to be gradually eliminated, or hit bottom to rebound. Affected by the epidemic, the Tokyo Olympic Games, the European Cup, the Copa America and other major sports events have been postponed to 2021, superimposed by individual World Championships. 2021 will become a veritable sports year. With the marginal improvement of the COVID-19 epidemic, plate suppression factors will be gradually eliminated, and ushered in a bottoming rebound.
The barrier of sports copyright resources is high, the copyright operation ability is outstanding, and the performance of 2021 is expected to rebound. 1) rich in sports copyright resources: the company has the rights and interests of top events such as AFC, UEFA and La Liga, grasps the core resources of the sports industry, and has high competition barriers; 2) the copyright operation ability is outstanding: Xinying has rich experience in sports copyright operation. significantly enhance La Liga's domestic coverage and influence, recognized by La Liga and extended cooperation to 2028 2029 season 3) go abroad and form the ability of international copyright operation: to increase capital and introduce Fortis teams with rich experience in the operation of international events to develop the rights and interests of AFC events is expected to help the company improve the global operation capacity of event copyright. 4) the performance is expected to hit bottom and rebound: Euro 2020 will be postponed to 2021, superimposed by the 2021 Asian Football Association tournament, and the company's relevant copyright operations and sports marketing services will usher in a peak of revenue recognition, with high certainty of rebound.
Profit forecast and investment advice. It is estimated that the EPS from 2021 to 2023 is 0.39,0.36,0.46 yuan respectively, and the corresponding valuation is 18 times, 19 times and 15 times respectively. The company is a leading enterprise in the domestic sports industry, with a leading copyright reserve industry, gradually has the ability to operate international copyright, and continues to maintain a "buy" rating.
Risk hints: the risk of a major change in sports policy, the risk of business integration or falling short of expectations, the risk of industry recovery or less than expected, the risk of event copyright acquisition or falling short of expectations, and the risk of M & A project operation falling short of expectations.
