Zhejiang Furun (600070): Focus On 2B MCN New Mode, Driving Continuous High-Speed Growth Of Performance

Stripping off traditional textile, steel pipe and other main industries, focusing on big data and Internet marketing new track, and stepping into a new track of development

Zhejiang Furun is an old brand textile and steel pipe key enterprise. Since its listing in 1997, the company has been operating steadily and the cost control ability of the management team is outstanding. On December 29, 2016, the company completed the acquisition of 100% equity of taiyizhishang, realizing the layout of big data and Internet marketing industry. On August 3, 2020, the company listed to transfer 46% equity of Zhejiang Furun printing and dyeing Co., Ltd. and 51% equity of Zhejiang Furun Textile Co., Ltd., with the transfer price of 201.391 million yuan. The bidder is the controlling shareholder of Furun holding group. After the transaction is completed, the company will complete the stripping of traditional textile main business and comprehensively focus on big data and Internet marketing new track.

MCN industry has entered into a stage of rapid growth, but it faces the pain points of strong bargaining power of head anchor, weak credibility and liquidity of waist

With the accelerated development of the mode of live broadcast with goods, the MCN industry is in the stage of rapid development, and the overall scale of the industry exceeds 10 billion. However, with a large number of fans and brand channels, the head anchor has a strong voice in the field of sharing proportion and replacing MCN platform, which leads to the weakening of the bargaining power of MCN institutions. On the other hand, due to the lack of credibility of the products with goods and the limited number of fans, the cashability is weak. At the same time, it is difficult and uncertain to cultivate waist online red to head online red, and the risk of input and output is high. With the continuous development of MCN industry, the pain points of MCN industry are gradually highlighted.

The company combines big data, blockchain, 5g package and other products and technology accumulation to create 2bmcn new mode, which is expected to solve the industry bottleneck

The company's subsidiaries taiyizhishang and Furun digital chain have accumulated for many years in big data, blockchain, 5g package and other products and technologies, and have rich customer reserves in the fields of government and commerce. It is expected to solve the bottleneck problems of MCN, red chain, etc. based on MCN, red chain and other modes, it is expected to solve the problems such as the bottleneck of MCN, the red chain of retailers, and the ability to innovate through the head of MCN and BMN. With the gradual landing of 2bmcn in shopping malls and other b-end customers, it is expected to accelerate the growth of the company's performance.

Investment proposal and profit forecast

It is expected to speed up the development of new business model such as 2G steel pipe company, focusing on the new business model such as 5CN, focusing on the new business model of bmcn, which is expected to accelerate the development of the main business model such as 2G, focusing on the new business model of bmcn Sustained and rapid growth. It is estimated that the company's operating net profit (excluding the changes in fair value and investment income such as holding Shangfeng cement (rights protection) equity) from 2020 to 2022 will be RMB 304 million, RMB 453 million and RMB 653 million respectively, corresponding to the P / E ratio of 26 times in 20 years and 17 times in 21 years. With reference to the average price earnings ratio of the same industry of 37 times in 2021, the target market value of the company is 16.9 billion yuan, corresponding to the stock price of 32.19 yuan, and the "buy" rating is given for the first time.