[investment points]
The superimposed off-season of the epidemic affects the pressure on the business, and the business can pick up in the second half of the year. 2022H1 achieved a revenue of 77.092 million yuan, down 33.9% from the same period last year, and a net loss of 38.661 million yuan, compared with 6.939 million yuan in the same period last year. In the main business, the revenue of the track business reached 22.029 million yuan, down 23.8% from the same period last year. The main company's racing venues were closed for a long time to cope with the epidemic prevention and control. The operating business income of the race is 37.59 million yuan, down 1.7% from the same period last year. Racing is seasonal to a certain extent. Spring is the off-season, and the business generally starts gradually from April to May. During the reporting period, the company's races are partially shut down due to epidemic prevention and control.
Renamed to show the business, the new and old business just complement each other. The company passed a bill in April to change the abbreviation of the company's securities to "Lisheng Sports". In recent years, the company's business ability has been steadily improved, and at the end of last year, it participated in the layout of "Yuet moving the World", and then launched strategic cooperation with China Sports Federation and China Sports Daily to jointly carry out the first National Community Intelligent AI Games at the end of April 2022, and the business has gradually landed. In recent years, the state has issued a number of industry support policies, such as the National Fitness Program (2021-2025) and the 14th five-year Plan for Sports Development, the Winter Olympic Games to be held at the end of 2021 and the Asian Games expected to be held in 2023 are expected to further strengthen people's fitness awareness and boost industry sentiment. The company's new national fitness business has successfully expanded the online scene, and when the business matures, it is expected to complement the traditional event business, so that the company can benefit from the industry recovery wave in more dimensions.
[investment advice]
The company's traditional racing business was greatly affected by the epidemic in the first half of the year, and is expected to pick up with the normalization of epidemic prevention and control in the second half of the year; the new national fitness business has initially landed, and two-way empowerment with the traditional business is just around the corner when the business is mature. We are optimistic about the follow-up development of the company, and forecast that the company's income in 2022-24 will be 4.21 yuan 6.15 / 707 million yuan, realizing a net profit of 0.33 million yuan and 0.65 yuan per share, corresponding to PE52/26/22 times, and maintaining the "overweight" rating.
[risk Tip]
Recurrent risk of epidemic situation
The development of new business is not as expected.