开源证券:首予艾德韦宣集团(09919)“买入”评级 疫后经营业绩弹性显现

Open source securities: First “buy” rating given to Edwin Group (09919), showing flexibility in post-pandemic business performance

Zhitong Finance ·  Nov 30, 2023 02:22

Open Source Securities expects Edwin Group (09919)'s 2023-25 net profit of 1.06/142/186 million yuan.

The Zhitong Finance app learned that Open Source Securities released a research report stating that Edwin Group (09919) received the “buy” rating for the first time, and is expected to have a net profit of 1.06/1.42/186 million yuan in 2023-25. The company's business covers experiential marketing, digital marketing and brand promotion, and has a number of top international IPs authorized in China. In 2022, the experiential marketing market accounted for about 10%, ranking first. The customer base is stable, with more than 550 high-end global pan-fashion brand customers, covering more than 3.14 million high-net-worth customers. Following offline recovery, 2023H1 achieved revenue of 350 million yuan/yoy +103.5%, recovering to 90% in the same period in 2019, and net profit of 38 million yuan/yoy +547%, setting a new semi-annual performance high.

The report's main points are as follows:

The marketing solutions market has increased significantly, and team experience+customer resources+technology empowerment have built a solid moat

Benefiting from the continuous expansion and digital innovation of the luxury goods market, in 2014-2019, the marketing solution service market for high-end and luxury brands in Greater China grew from 16.9 billion yuan to 28.6 billion yuan, with a CAGR of 11.1%. The CAGR is expected to reach 16.9% in 2022-2025, and the market size will reach 46.6 billion yuan in 2025, of which the experiential marketing/digital marketing/public relations CAGR is 16%/20.2%/14.5% respectively. Company advantages: The team is experienced and the manpower is remarkable. It has abundant customer resources and maintained rapid growth, and has high customer stickiness. It has become Baidu Wenxin's first batch of ErnieBot ecosystem partners, which will empower the company's marketing experience and content creation.

Continue to explore diverse business layouts and increase IP business contributions

The company uses data interaction as the core to build a positive cycle of resource circulation, and the three major businesses collaborate to promote sustainable development. (1) Experiential marketing services: The company has now received a number of global and local marketing service projects, and has reached a cooperation with Fulang Group to provide one-stop marketing services for Fulang Group and jointly explore and incubate new brands and expand new business models. (2) Digital marketing: The company continues to deploy in the AI+ metaverse field on the basis of expanding new customers. A strategic cooperation was reached with “For Fast Technology” and a co-creation agreement with Baidu and Xiyang, which are expected to expand new performance growth points. (3) IP business: The Tour de France and La Liga club races will resume in 2023, and stable and high-quality high-margin businesses such as Shanghai Design Week (20) and Hong Kong Land Exhibition Hall operation (20 years) are progressing in an orderly manner, which is expected to contribute to greater performance growth in the future.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment