Contemporary Mingcheng (600136) company event review: Asian Cup ahead of schedule
This report reads: With the Korean Football Association withdrawing from the bidding contest, the Asian Cup will fall to China in advance in 2023.
As the local hosting will greatly increase the attention of the event, the value of the Asian Cup broadcast copyright and sponsorship rights held by the company will be greatly enhanced.
Event: The Korean Football Association announced on May 15 that it has abandoned its bid for the 2023 Asian Cup through official channels and will focus on the bid for the Women’s World Cup.
This means that China became the only bidder and thus won the right to host the Asian Cup in 2023 in advance.
Comment: The Asian Cup is the highest-level Asian national team event with huge commercial value. The local hosting will boost the value of the Asian Cup equity held by the company.
China hosted the Asian Cup in 2004, and the Chinese team as the host won the runner-up, which is one of the best records in the history of the Asian Cup.
Although in the finals, because of handball misjudgment 1: 3, Japan was defeated, but it surpassed “News Broadcast” and hit 18.
5% of China’s television history ratings record.
In the history of Chinese sports events, five of the top ten ratings are China’s Asian Cup matches, which surpassed the trump card variety shows such as “China’s Good Voice” and “Where’s Dad?”
Once China successfully bids for the Asian Cup 2023, the value of the media copyright and sponsorship rights owned by the company will soar, bringing flexibility to the company’s performance.
After renewing the La Liga all-media copyright until the 2024/25 season, the company’s sports copyright reserve is further enriched, and the top international sports companies are emerging.
After obtaining all the competition rights of the AFC itself, the company has almost won the highest level of events that the Chinese national team and the Super League can participate in.
In the future, the company holds the copyright of many core events such as La Liga, the European Cup, the Asian Cup, the Asian Cup and the World Cup Asian Preliminary Round. It can continue until 2028, providing long-term protection for the company’s performance.
Moreover, the reorganization and naturalization policy was relaxed, the plan to study abroad started, and the golden development period of the Chinese football industry came in the next decade. The national team and the Super League team ‘s record could be improved.The probability is great.
Therefore, while guaranteeing the company’s stable income in the next ten years, the AFC’s equity also brings extremely high performance flexibility.
At present, the sports copyright and marketing resources held by the company have been absolutely leading internally, transforming the further development of Asian and international markets, and it is expected to become the world’s top sports company.
Wait for the non-public offering to advance the reduction of interest expenses and the release of the remaining two major catalysts in six months.
Due to the high debt of 3.4 billion cash acquisition of Xinying Sports,天津夜网 the company’s interest expenses in 2018 reached 3.
The company will raise funds through various methods such as non-public issuance, bond issuance and minority equity financing of subsidiaries to reduce interest expenses, thereby releasing performance flexibility.
In fact, the company’s remaining two major catalysts in June are yet to be released: the expansion of the Qatar World Cup in 2022 may be released; after Lei Wu joined the Spaniard, the La Liga copyright season is expected to rise in price.
We forecast company EPS0 for 2019-2021.
95 yuan, maintain “overweight” rating, maintain target price of 29.
Risk Warning: Sports Broadcasting Copyright Risk, International Sports Market Fluctuation Risk