A leader in online audiovisual content security regulation. The company's main business is media security/smart education/smart display control, etc. The media security business mainly targets various broadcasting agencies such as television stations, radio and television operators, telecom operators, etc. Through the application of audiovisual big data technology, the whole process, and end-to-end service quality monitoring is achieved. At the same time, technical means are provided to government media supervisory authorities to comprehensively collect and intelligently analyze media content to ensure the healthy development of the online audiovisual industry. Media security revenue in 2022 was 122 million, accounting for 74%. Customers were distributed to radio and television stations, radio stations, television stations, operators, etc. across the country.

NLP and CV have a wealth of technical resources to innovate new media regulation solutions on the Internet. In 2022, the company increased its R&D efforts in the field of natural language processing and machine vision. In 2022, the R&D investment was about 50 million, accounting for nearly 30% of R&D investment. Through the application of artificial intelligence, big data and other technologies, collected data are analyzed, characteristic learning, and sample training are carried out, intelligent supervision models are constructed, processing and analysis capabilities for multi-modal data such as text, pictures, audio, and video are enhanced, core technical advantages are further strengthened, and product competitiveness is enhanced. In the AIGC era, radio and television regulators faced more challenges, and the huge user base continued to spawn new media formats and rapidly developed. The company innovates and develops Internet new media supervision solutions. Through the collection of massive audiovisual data from supervised targets such as Internet websites, WeChat accounts, mobile clients, Internet TV, short video platforms, self-media platforms, etc., the company uses big data and artificial intelligence technology to efficiently automate and intelligently analyze and judge sensitive, harmful, and illegal content in the media to ensure the healthy and orderly development of Internet new media.

2023 may be an inflection point in performance. (1) In the AIGC era, multi-modal content will be exported more frequently, patterns will change rapidly, media security authorities will face more challenges, and it is expected that they will invest more in updating content security supervision equipment. The company recently won the bid for the Yunnan Radio and Television and Audiovisual New Media Monitoring and Supervision Platform (Phase I) project. The amount was 25.67 million. Customers used advanced technologies such as cloud computing and artificial intelligence to meet future challenges. (2) Targeting colleges and vocational education, developing smart education services, implementing interest rate loan policies for colleges and universities in 2022, university education informatization is facing a new round of development opportunities. The company's “Bohui Music Course” product line is getting better, and solutions such as smart classrooms and smart management centers are increasingly recognized by the market, and are expected to achieve good results.

Investment advice

The company's EPS for 2023-2025 is expected to be 1.25, 2.15, and 3.17 yuan respectively. The PE corresponding to the current stock price is 31.29, 18.13, and 12.30 times, respectively. In the era of multi-modal content brought about by AIGC, AI and big data recognition technology will highlight its importance. The popularity of the technology and content safety circuit will increase dramatically. The company has a clear advantage in the field of radio, television and media. With the support of AIGC and Xinchuang's dual industrial policies, performance may be drastically corrected, covered for the first time, and given a “buy” rating.

Risk warning:

Compared to AIGC, the development of audiovisual content supervision technology risks falling behind; project implementation fell short of expectations; customer expansion fell short of expectations.