The performance will be turned from deficit to profit in 2021, and the main business will be focused. In 2021, the company's total revenue was 3.727 billion yuan (year-on-year + 17.07%), comprehensive gross profit 23% (year-on-year + 0.3pct), return-to-mother net profit 431 million yuan (year-on-year + 134.83%), deduction of non-return net profit 260 million yuan (year-on-year + 120.67%), return loss to profit, return-to-mother net interest rate 11.6%; net cash flow from operating activities is 1.799 billion yuan (year-on-year-1.55%).
"New media copyright operation and distribution business" as the strategic core. The company's new media copyright operation business is mainly completed by the subsidiary China TV Network, which has accumulated more than 50,000 hours of film and television, animation and program copyright content.
In 2021, the company launched a number of high-quality cinema films in new media. including "bomb disposal expert 2", "send you a Little Red Flower", "assassinate the novelist", "crowds", "Chinatown investigation 3", "my Sister", "Godzilla vs. King Kong", "on the Cliff", "your Wedding", "Chinese Doctor", "anger"
Introduce Warner classic works "Friends", "Cat and Mouse", etc., reserve domestic head children's content "Pleasant Goat Series", "Pig Man Series", "coltan Dragon Battle Series", "Aufei Q pet" and so on. In terms of distribution, the company's new media rights are distributed digitally to radio and television, Internet new media, operators and other media channels, while expanding domestic well-known mobile phone manufacturers OPPO and VIVO as content strategic partners, tamping the distribution matrix, and establishing self-operation teams on overseas platforms. In 2021, the company's new media copyright operation and distribution business income of 3.088 billion yuan (year-on-year + 28.45%), gross profit of 24.1% (year-4.2pct), net profit of 533 million yuan (year-on-year + 18.22%). In 2022, Xinjiang Huaxiu, a holding subsidiary of China TV, signed a six-year new media copyright broadcasting contract with Tencent with a total amount of 1.8 billion yuan.
Film and television content production business shrinks, focusing on boutique cautious investment. In 2021, the company's film and television content production revenue was 451 million yuan (+ 78.08% compared with the same period last year), accounting for 12.1% of the total revenue and 9.1% of the gross profit margin. In 2021, we will focus on confirming the income from film and television works such as "ace Force" (350 million yuan, iQIYI, Inc. customized drama), "falling in love with special forces" (65.29 million yuan, iQIYI, Inc. platform broadcast), "Dark War and dangerous City" (14.71 million yuan), "undermarry Princess" (5.45 million yuan), "Chinese Paladin I" (3.4 million yuan) and so on. At present, a number of film and television works of the company are being released or ready to be filmed, including "the most brilliant We" (main cast) and "the camouflage Deep Sea"
(main vote), "the more alive the more exciting 2", "the most beautiful but meet for the first time", "Qilou Xia Zhuan".
Strengthen the technology reserve, layout 4K/8K ultra-high definition, VR, AR, virtual digital human and other high-tech video business.
The company's audio and video overall solution business was affected by the COVID-19 epidemic, with 2021 revenue of 188 million yuan (year-on-year-63.4%) and gross profit margin of 36.9%. In 2021, the company reserves platforms such as ultra-high definition network production management system, ultra-high definition business platform system, ultra-high definition monitoring system and ultra-high definition news production and broadcasting system, and will seize the opportunity of the development of radio and television ultra-high definition industry. do a good job in upgrading the company's ultra-high-definition industry-related technologies and solutions. The company holds 24.38% of Shiyou Technology, which is the second largest shareholder. Shiyou Technology has a full-class digital human product system, and has matching patented technologies and solutions in virtual scenes, film and television animation virtual content production, VR/AR and metasmos content production and other scenes. In 2021, the investment income recognized by the company under the Shiyou Technology long-term Equity Investment Rights and interests Law is 1.92 million yuan.
Profit forecast and valuation. 2022Q1, the company's total revenue is 988 million yuan (year-on-year + 33.44%), the return net profit is 290 million yuan (year-on-year + 197.62%), and the non-return net profit is 280 million yuan (year-on-year + 744.16%). The company's itemized revenue assumptions are as follows: 1) Film and television copyright operation and services: we believe that the company continues to dig deep into the needs and cooperation of existing B-end customers, on the other hand, actively expand new distribution channels, and explore multiple C-end joint operation models. It is estimated that the company's film and television copyright operation and service business revenue will grow by 20%, 15% and 12% respectively from 2022 to 2024 compared with the same period last year. 2) Film and television content production business: we believe that the company's overall film and television content production business is stable in scale, pays attention to high-quality products, and emphasizes capital recovery. It is estimated that the company's film and television content production business revenue from 2022 to 2024 is-30%, 0% and 0% respectively compared with the same period last year. 3) Audio and video overall solution business: we believe that with the normal development of epidemic control, it is conducive to the gradual recovery of the company's business. It is estimated that the company's overall audio and video solution business revenue will grow by 5%, 10% and 15% respectively from 2022 to 2024 compared with the same period last year.
We estimate that the total revenue of the company from 2022 to 2024 is 4.218 billion yuan, 4.794 billion yuan and 5.338 billion yuan respectively, up 13.2%, 13.6% and 11.3% respectively over the same period last year; the net profit returned to the mother is 700 million yuan, 804 million yuan and 897 million yuan respectively, an increase of 62%, 15% and 11.6% respectively over the same period last year; and the corresponding fully diluted EPS is 0.270.31 yuan and 0.35 yuan per share respectively. With reference to the comparable company's 22 times PE valuation in 2022, we give the company a valuation of 25-30 times PE in 2022, corresponding to a reasonable value range of 6.75-8.1 yuan per share, with a "better than the market" rating.
Risk hint. The cost of copyright procurement of the company has increased.
