China Sports Industry (600158) Annual Report Review: Three-dimensional layout advantage highlights the absolute leader of sports platform companies
Event: The company achieved an operating income of approximately 14 in 2018.
500 million US dollars, an annual increase of 33%; net profit attributable to shareholders of listed companies is 8391 million, an annual increase of 44%; net profit after deduction is 82.12 million yuan, an increase of 46%; realized income of 0.
0994 yuan, an increase of 44 in ten years.
Key points of investment: The development of the sports platform business model to promote the growth of the company’s performance. The report on the growth of the alternative main business of the Chinese sports industry is obvious. The highlight is that the sports business achieves revenue5.
60 ppm, an increase of 30 in ten years.
57%; gross margin is 28.
84%, basically stable for one year.
From the perspective of performance, the company’s “sports + multiple industry resources” business model has begun to release performance, and the pulling effect produced by the sports industry has gradually emerged. It has shifted from relatively independent types of sports services to cross-domain and cross-industry.The transformation of platform-based services, through the construction of service platforms, has obvious effects on business linkage and resource integration.
Sports business: The strength of the event matrix has increased significantly, and the company’s eye-catching report on the performance of the brokerage business has resulted in the rapid growth of the sports business, which is mainly due to the increase in revenues from the two major business of event management, operations and brokerage, in which the event business revenue has increased by 48.
12%. Brokerage business revenues increase by 82 per year.
72%, very eye-catching performance.
In terms of event business, the company added the Guangzhou Marathon in 18 years and became the operator of the three top marathons in North Malaysia, Wuma and Guangma. At the same time, it also won the Beijing Half Marathon. “Circle China, Qinling Mountains, Quanzhou Bay, Panzhihua”Four road cycling races, as well as cooperative projects such as sailing, aviation, smart sports, and national fitness, have greatly increased the IP competition and overall strength of the company’s events.
We believe that the Chinese sports industry has become the largest sports event operating company in China with operating capacity and potential for expansion, and the continued development of core business will continue to increase the company’s operating scale and estimated level.
The company’s sports brokerage business mainly provides market development agency services for national sports teams such as the General Administration of Sport Training Bureau, the National Diving Team, the synchronized swimming team, the short track speed skating team, the Winter Center and other national teams, such as Wu Dajing, Liu Guoliang, Ye Shiwen, etc.By the 2020 Tokyo Olympics, the company’s sports brokerage business will also continue to develop capabilities.
In terms of internationalization, the company is the absolute leader in the realization of the “Belt and Road” in the sports industry, providing business extension and international interfaces for the company’s sports industry chain.
The report summarizes that the company has implemented sports technical assistance projects for athletes such as Bolivia, Madagascar, Jamaica, Uruguay, and Tonga, organizing competitions, and performing large-scale celebrations. The team has successfully implemented the gymnastics performance techniques for the opening and closing ceremonies of the South American Games.Assistance projects, traditional technical cooperation projects for stadiums such as Sierra Leone, Niger, Uganda; also completed 5 sports research courses in cooperation with the Ministry of Commerce, and undertook the recruitment of sports services trade section of the first China Import Expo.
In addition, the company’s major highlights in 19 years are the market development of the 7th World Military Games and the franchise retail business of the 2022 Winter Olympics and Winter Paralympic Franchise Plan.
We believe that the company’s current resource advantages in the industry have continued to emerge, and the development of traffic for national fitness, Olympic Day and other activities has begun. Its upstream event resources and downstream sports space content and operations can form a significant synergy effect, so these resourcesThe huge commercial value will be gradually released, making the company the most comprehensive sports industry operation platform in the country, and at the same time, the performance can continue to grow.
The sports lottery business reorganization was greatly underestimated by the market for 18 years. The company started major asset reorganization work. It is planned to inject the supplementary lottery company under the State Sports General Administration and merge the relevant equity of the certification company into the body.
The main business of Sports Lottery Technology Co., Ltd. and China Sports Lottery Printing Co., Ltd. belongs to the upstream sector of sports lottery services. The main business of China National Sports Certification Corporation and Huaan Certification Corporation belongs to sports standardization services and certification testing related industries.China Sports Lottery Technology is the core system technology developer and operator of domestic sports lottery. The domestic competition barriers and operating advantages are very obvious.
If the reorganization is successful, the company will fully cover the upstream R & D operations-equipment-printed copies of sports lottery and become the 杭州桑拿网 absolute leader in the sports lottery industry.
We believe that the company’s existing strength and development potential in the sports lottery business are seriously underestimated by the market, and investors are advised to remain highly concerned.
Investment rating and profit forecast We believe that the company’s three-dimensional layout of the sports industry and business platform management model have a clear thinking. When internal business resources are integrated and integrated, it is used in sports event operations, sports brokerage, sports complex development and operation, and sports lottery business.The absolute advantages in this area are obvious. At the same time, the advantages of resources have begun to be released continuously. The flow effects covering users can be organically combined with information 重庆耍耍网 technology, big data and other scientific and technological means, and the operating status has continued to improve. It is an absolute platform leading company in the domestic sports industry.
Looking forward to 2019, the company’s biggest point is that the commercial value of the sports event matrix will continue to be released. At the same time, the sports lottery business is expected to gain stronger competition and business capabilities through asset reorganization, and the sports foreign aid business will continue to contribute performance; thus the company willThe potential energy of the spatial layout will be demonstrated in the medium and long term.
Therefore, the company’s overall business has great potential for development and its ability to achieve sustained growth. We give the company an “overweight” investment rating. Regardless of the replacement passed by the company’s restructuring, the company’s EPS for 2019-2021 is expected to be 0.
20 and 0.
26 yuan / share, it is recommended that investors continue to pay attention.
Risks remind the policy risks of the sports industry, the company’s business development is not up to expectations, major changes have taken place in the business, and the real estate industry continues to be sluggish.