Key points of investment

Next Monday (6/5), a company listed on the GEM “Sea View Shares” will ask for a quote.

Sea View Co., Ltd. (301262): The company's main business includes IPTV business and mobile media platform service business; among them, the IPTV business is mainly transmitted through telecom operators' virtual private networks to provide a variety of audiovisual program services to home users of TV terminals, and has various functions such as live streaming, on-demand broadcasting, time shift, replay, and intelligent recommendations. The company achieved operating income of 935 million yuan/973 million yuan/1,021 million yuan respectively in 2020 and 2022, YOY was 8.48%/4.03%/4.92% in that order, and the three-year revenue compound annual growth rate was 5.79%; achieved net profit of 388 million yuan/440 million yuan/414 million yuan, YOY was 7.12%/13.30%/-5.87% in that order, and the three-year compound annual growth rate of Fumo's net profit was 4.54%. In the latest reporting period, 2023Q1 achieved operating income of 242 million yuan, a year-on-year decrease of 4.07%; it achieved net profit of 107 million yuan to its mother, an increase of 6.10% over the previous year. According to preliminary forecasts, the company expects to achieve net profit of 20,000 yuan to 240,000 yuan from January to June 2023, a change of -3.47% to 15.84% over the same period last year.

Investment highlights: 1. The company relies on Shandong Radio and Television to become the exclusive operator of IPTV integrated broadcast control business in Shandong. The IPTV industry implements a two-level integrated broadcast control platform architecture. CCTV is responsible for the IPTV integrated broadcast control platform, and provincial television stations are responsible for the IPTV integrated broadcast control sub-platform; the actual controller of the company is Shandong Radio and Television. Using this platform, the company has accordingly become the exclusive operator of IPTV integrated broadcast control related business in Shandong, which is unique in Shandong. By the end of 2022, the number of users of the company's IPTV business was 164.973 million. The penetration rate in Shandong Province was 44.97%, lower than the national average penetration rate of 74.65%, and there is still plenty of room for expansion. Furthermore, the company has further enriched the content of the existing IPTV business and launched various value-added services such as e-commerce, online education, and online medical care, which is expected to drive a steady increase in IPTV business revenue. 2. The company actively develops other businesses such as “mobile media platform services”, which is conducive to breaking through the geographical restrictions of users and enriching the company's revenue structure. In addition to IPTV integrated broadcast control service operating qualifications, the company also has qualifications such as mobile media platform service services, Internet content services, and operation services that are not restricted by users' regions.

The mobile media platform service mainly provides customers with a service port through the self-developed “Light and Fast Cloud” platform. Software development and platform construction work has been provided to customers such as Heze Radio and Television Station and Nanning Radio and Television Station during the reporting period. In terms of content services, the company cooperated with downstream new media operators such as mobile video, short video, and Internet TV to share revenue by providing them with copyrighted content. The operation service mainly provided wireless value-added content to many enterprises such as Migu Video during the reporting period; the operation service mainly supported the operation of the customer's live streaming signal source to ensure the stability or construction of the live broadcast signal. Content customization area service. By the end of 2022, sales revenue from these expanded fields had exceeded 40 million yuan, and the company's revenue structure was further enriched.

Comparison of listed companies in the same industry: Based on the similarity of their main business, radio and television broadcasters such as Oriental Pearl, Mango Supermedia, and New Media Co., Ltd. were selected as IPTV sub-platform integrated broadcast control qualifications issued by the State Administration of Radio, Film, and Television as comparable listed companies. Judging from the above comparable companies, the average revenue scale of comparable companies in 2022 was 7.279 billion yuan, and comparable PE-TTM (excluding Oriental Pearl, which has an abnormal price-earnings ratio due to profit fluctuations) was 21.65X, and the gross sales margin was 39.09%; compared to the company's revenue, the company's gross profit margin was 39.09%; compared to the company's revenue, The scale is less than that of peers Average value, but gross margin level is in the middle to high range of peers.

Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.