Key points of investment
State-owned assets empower industrial upgrading, and digital marketing takes on a new chapter. Zhejiang Wen Internet Group Co., Ltd. was founded in 1993. In 2004, the company landed on the Shanghai Stock Exchange and initially focused on infrastructure construction and real estate development; in 2015, the company acquired Baibushi, Shanghai Tongli, Huayi Marketing, Rainforest Mukfeng, and Periway, and entered the digital marketing field; in 2021, the Zhejiang Provincial Department of Finance obtained a controlling interest in the company through Hangzhou Zhejiang Internet, and the company divested traditional businesses such as real estate to achieve a gorgeous transformation from a traditional construction enterprise to a leading domestic digital marketing group.
Seven subsidiaries go hand in hand, covering a wide area of the entire marketing industry chain. The company's digital marketing business has two major divisions: performance marketing and brand marketing. Among them, the performance marketing division mainly focuses on Perway and Rainforest Mupeng. The brand marketing division includes five companies: Baibusi, Zhejiang Tianjie, Tongli Communications, Zhiyuan Network, and Huayi. Seven companies have jointly created a full-link digital marketing service matrix covering data insight, performance marketing, performance optimization and management, brand promotion, media planning and delivery, experiential marketing, public relations, content marketing, self-media, and marketing technology products to help the company's performance grow steadily.
“Morning C Night A” improves quality and efficiency, leading the layout of the new digital world. In recent years, the company has firmly embraced AI technology changes, actively promoted high-quality data reservation+digital intelligence strategy upgrades internally, continued to incubate innovative business tracks externally, and continued to focus on “Content+Ability” construction. On the virtual human side, the company's “Digital Virtual Human - DIGITAL HUMAN” business has landed in Hangzhou and has formed a relatively complete virtual human industrialized production capacity, which is expected to break through the marketing dimension and create a new virtual IP marketing ecosystem. On the AI painting side, the company took the lead in deploying two super applications, the AI painting application “Rice Painting” and the metaverse scene production tool “Digital Warrior”, which efficiently empowers C-end users to create digital art; on the virtual scene side, the company uses strong virtual space personalized design and production capabilities to efficiently serve customers in the automotive industry and create a new metaverse marketing Experience. In the future, the company will also use AIGC to empower diverse business scenarios such as live e-commerce, live streaming marketing, and short video creation to open up the revenue ceiling.
Profit forecast: The company's net profit for 2023-2025 is estimated to be 281/339/411 million yuan. Corresponding to the current stock price (05/23/2023), PE is 29.6/24.5/20.2 times respectively, covered for the first time, and given an “increase in holdings” rating.
Risk warning: risk of increased market competition, risk of business compliance, risk of new business layout, risk of loss or shortage of core technical talent