【行业研究报告】乐享集团-营收超预期但盈利性短期承压，创新性值得期待

Whathappened:JoySpreader(the"Company")announcedaprofitalertfor2022,expectingitsfull-year
revenuetobenolessthanHK$3,700mn,withdomesticbusinessrecordingrevenueofnolessthan
approximatelyHK$610mn,andoverseasbusinessrecordingrevenueofnolessthanHK$3,090mn.Asfornet
profit,theCompanyexpectsitsnetlossattributabletoshareholderstobebetweenHK$322.2mnandHK$356.1
mnin2022.
Commentsandviews:JoySpreader'soverallrevenuein2022basicallymetourforecastofHK$3,724mn,and
Commentsandviews:JoySpreader'soverallrevenuein2022basicallymetourforecastofHK$3,724mn,and
exceededBloomberg'sconsensusbyabout7.4%.TheCompany’soversease-commercebusinessrevenueis
thekeyreasonwhyoverallrevenueexceededmarketexpectations.Theoversease-commercebusinessofthe
Companywaslaunchedinthefourthquarterof2021,anditsannualGMVexceededHK$3bninjustoneyear,
furtherconfirmingourpreviousviewthattheCompany'scoreadvantagescomefromitscorealgorithmfor
internetusertraffic,aswellasitsabilitytoaccuratelymatchlong-tailusertrafficandnichemarkets.However,the
Company'sprofitmarginwaslowerthanourexpectations,resultinginanetloss.Webelievethisismainlydueto
themarketsubsidycostsgeneratedbytheexpansionofitsoverseasbusinessandthehigher-than-expected
expensesforexpandingsaleschannels,aswellasthelowergrossprofitmarginofitsdomesticmarketing
businessduetoimpactfromtheCovid-19pandemic.Atpresent,theoversease-commercebusinessisina
stageofrapidexpansion,anditrequireshighlevelsofinvestmentinR&Dandmarketingtopenetrateinto
overseasmarkets,thustheentireoverseasbusinessiscurrentlyloss-making.Lookingaheadto2023,theprofit
marginoftheoverseasbusinessisexpectedtograduallyimprove.Weexpectthisbusinesstoachieve
profitabilitybytheendof2025.Asforthedomesticbusiness,thedisappointingperformancein2022ismainly
attributedtothehugeimpactfromthepandemicondomesticbusinessactivityandthestrictregulatorypoliciesin
China’sgameindustry.Currently,thetwomajornegativefactorsaffectingdomesticbusinessin2022havebeen
basicallycleared.China'spandemicpreventionandcontrolmeasureshavebeenfullyrelaxed,andforChinese
brandadvertisers,thegradualrecoveryofbusinessactivityalsomeansthattheirmarketingbudgetswill
graduallyrecoveraccordingly.Ontheotherhand,theissuanceofgamecopyrightsinChinahasreturnedto
normal,whichhassignificantlyimprovedprospectsfortheCompany'smarketingbusinessforinteractive
entertainmentandotherdigitalproducts.
Investmentsuggestion:TheexceptionalperformanceofoverseasbusinessonceagaindemonstratesJoy
Spreader'sinnovativeabilityasaninternettechnologycompanyandtheadvantagesofitsalgorithms.Weexpect
thattheimprovementinpandemicpreventionandcontrolmeasuresandtherelaxationofpolicyinthegame
industrywillsignificantlyimprovetheCompany'sdomesticmarketingbusinessperformancein2023.Atthesame
time,theCompanyismaintainingitsinnovation.JoySpreader'sstrategicpartner,PolyJoySpreader
Digi-Entertainment(JoySpreader'ssubsidiaryLexiangCultureTechnologyholdsa10%share),hasits
blockchaininformationservicenameincludedintheannouncementoftheeleventhbatchofdomesticblockchain
informationservicerecordnumbers,publishedbytheNationalInternetInformationOfficeonFebruary21,2023.
OnFebruary28,PolyJoySpreaderDigi-Entertainmentannouncedthatithadbecomethefirstbatchof
ecologicalpartnersofBaiduErnieBot(Baidu'sself-developedChatGPT-styleAIcontentgenerationapplication).
Weexpectthatinthefuture,PolyJoySpreaderDigi-EntertainmentwillapplyBaidu'sleadingintelligentdialogue
technologytoitsdigitalnativecontent,digitalart,andtraditionalofflineculturalsceneapplications.InMarch
2022,JoySpreadersubscribedforPolyJoySpreaderDigi-Entertainment'sregisteredsharecapital,andbegan
tocollaboratewiththecentralstate-ownedculturalenterprisestoexpandnewdigitalbusinessopportunities
combiningfilmandtelevisionentertainmentwithinternettechnology.WebelievethatJoySpreader'salgorithmic