Since the epidemic, netizens have been working as fat people at home. A joke became a hot search: Ask me out for Valentine's Day? It’s OK to lie to me about my feelings, but it’s not OK to kill me! "
It seems that "epidemic" lovers can only turn on cloud dating mode. "There is a kind of pain that I want to see you but can't see you..." I miss the days of singing K dinner, watching movies and concerts, and when spring is in full bloom, go to the concert together.
Recently, "concert stocks" Special Art Culture has submitted a second list to pass the Hong Kong stock IPO. Zhongzhou International Financing Co., Ltd. is its exclusive sponsor .
△Photo source: prospectus
1. Company introduction
Teyi Culture is a concert organizer, concert technology production and creative solution service provider. It became a hit for the successful preparation of Jay Chou in Hong Kong Hung Hom Stadium . Founder Tsai Jianhui is a recognized concert production tycoon in the circle. The company held more than 600 concerts for more than 400 artists or bands (including Andy Lau , BIGBANG, Mayday, etc.). With a market share of 34.2%, it ranks first among the five major concert organizers in Hong Kong.
At present, the special art culture business Operations are divided into two parts. One is to provide technical production and creative solution services, and the other is to engage in concert preparation business. In recent years, the concert preparation business has grown rapidly, and the revenue share has also increased from 34% in fiscal year 2017 to 60% in fiscal year 2019. Ticket sales alone accounted for 52% of revenue.
△Photo source: prospectus
△Photo source: prospectus
. Ticket sales are largely affected by the reputation of artists and the popularity of performances. Fortunately, the company's customers are very powerful. In the four years ended September 30, 2019, the five major customers accounted for a total of about 30.4% and 28.1% of the revenue respectively , 25.4%, and the sales to the largest customers accounted for about 9.2%, 6.2%, and 6.7% of the total revenue during the same period. On September 30, 2019, the five major customers had a business relationship of 1-12 years.
△Photo source: Prospectus
In addition, the preparation period for both businesses takes at least one week to six months, and the lengthy time cycle destined to uncertainty in performance. Founder Cai Jianhui once admitted that the industry has the characteristics of difficulty in operation and high risks. However, from the prospectus, the overall profit of Teyi Culture is still quite good.
2. Performance
prospectus shows that in the three fiscal years ended from 2017 to March 31, 2019, the company's revenue was HK$221 million, HK$263 million and HK$305 million, respectively. The annual profit was HK$26.214 million, HK$28.336 million and HK$18.676 million, respectively. As of the six months ended September 30, 2019, the company's revenue was RMB313 million, a year-on-year increase of 59%, and the annual profit was HK$21.918 million, a year-on-year increase of 104%.
△Photo source: Prospectus
As of the years ended 2017, 2018 and September 31, 2019, the gross profit margin remained stable, at 18.9%, 20.7% and 21.0%, respectively.
△Photo source: Prospectus
△Photo source: Prospectus
3. Industry forward
In the past five years, the Hong Kong concert market has grown steadily and still has room for growth. The CAGR of the box office from 2013 to 2017 was 6.3%, and it is expected that the CAGR of the CAGR from 2017 to 2023 can increase to 6.6%.
△Photo source: prospectus
Also According to Frost Sullivan's analysis, it is expected that the total number of concert programs in China in 2018 to 2023 will continue to grow rapidly, with a compound annual growth of 15.7%. The rate has increased to about 5,800 shows; the total box office of the concert will grow to about 9.6 billion yuan at a compound growth rate of 16.9%; the compound annual growth rate of market revenue of technology production and creative solution services is 18%, which may reach about 3.2 billion yuan.
△Photo source: prospectus
in the short term, affected by the social events and the outbreak of the epidemic in Hong Kong, some concert projects that special art culture, which will be held in February or March this year, have been postponed or cancelled. In addition, the decrease in mainland China's tourists to Hong Kong have also had a certain impact on the company's revenue. In the long run, it is expected to benefit from the rapid development of the industry.
When spring is in full bloom, let’s go to the concert together.
