DAFENG INDUSTRY(603081) 信达证券·2024-03-17 16:00Investment Rating - The report assigns a "Buy" rating for the company, Dafeng Industrial (603081.SH) [20]. Core Viewpoints - Dafeng Industrial is positioned as a leading integrated supplier in the cultural and sports tourism facilities sector, transitioning towards digital arts and cultural tourism operations. The company has shown steady growth, with revenue increasing from 1.795 billion in 2018 to 2.842 billion in 2022, reflecting a CAGR of 12.17%. Net profit also grew from 230 million to 287 million during the same period, with a CAGR of nearly 6% [2][20]. - The company is actively expanding its new business segments, particularly in digital arts technology, which is expected to become a core focus for future growth. Collaborations with leading studios like Weta Workshop aim to enhance immersive digital experiences [20][39]. - The company has a robust order book and is expected to benefit from favorable national policies supporting the cultural and tourism sectors, which will aid in its long-term sustainable development [20][62]. Summary by Sections 1. Company Overview - Dafeng Industrial has evolved from a manufacturer of stage and seating equipment to a comprehensive service provider in the cultural and sports tourism industry, focusing on innovative technology and integrated solutions [60][61]. 2. Business Segments - The company operates in several segments, including cultural technology equipment, digital arts technology, rail transit equipment, and cultural tourism operation services. The digital arts segment has seen significant growth, with revenue increasing from 78 million in 2018 to nearly 400 million in 2022, showcasing a high compound growth rate [40][67]. 3. Financial Performance - The financial outlook for 2023-2025 anticipates revenues of 2.65 billion, 3.30 billion, and 3.82 billion respectively, with year-on-year growth rates of -7%, 25%, and 16%. Net profit is projected to be 123 million, 349 million, and 425 million, with significant growth expected in 2024 [20][23]. 4. Market Position and Strategy - The company has established itself as a key player in the cultural and sports tourism sector, with a strong portfolio of landmark projects and a shift towards a ToB+ToC business model, enhancing its market reach and growth potential [20][60].