Triple play will promote TV stations to accelerate full HD upgrades in 2011 Universe 2012
Under the background of triple play, radio and television need to find breakthroughs to accelerate their development. Since the second half of 2010, some TV stations have been upgraded to HD or UHD. We believe that this trend will expand rapidly in 2011 / 12, comprehensively driving the investment in video and audio equipment in the whole radio and television industry, especially in the television field, so that by the end of 2013, half of the more than 2000 channels of the country's 272 television stations will have the conditions for high-definition broadcasting, corresponding to five times that of today. With a total market opportunity of more than 15 billion yuan, n Daheng Technology subsidiary Zhongke Dayang, as an industry leader, is expected to achieve better-than-expected performance growth of 56%. Zhongke Dayang is an absolute leader in the audio field of Guangzhou TV in China, with an income of 440 million yuan in 2009. in the next three years, it will fully benefit from the rapid growth of TV station HD upgrades. We predict that the company's total revenue growth rate in 2010-12 will be 37%, 48%, 52%, and the net profit margin will rise from 8% in 2009 to 18-20%, making it the most important source of profit growth for listed companies.
The listed companies of Daheng Technology have reversed their business in an all-round way, resulting in an increase in revenue and profit.
For Daheng Technology as a whole, it has benefited from 1) the rapid growth of investment in the industry of high-definition upgrading of TV stations, 2) the booming demand for high-power semiconductor industry, and 3) the rapid growth of precision manufacturing and intelligent transportation market. We expect that in 2010-12, the total revenue of Daheng Technology will show a strong growth trend, reaching 38.94amp 47.72 / 5.888 billion yuan, while the gross profit margin and net profit margin will rise at the same time, and the net profit will reach 1.46 gambit 2.51 / 348 million yuan.
Valuation: the first time to cover the "buy" rating, the target price of 20 yuan, the current price safety margin is very high
We use segment plus sum (SOTP) method to value Daheng Technology. Combined with the valuation of other companies in the market and the growth of Daheng Technology business, we come up with a target price of 20 yuan for 11 years. Corresponding to the 11 / 12 price-to-earnings ratio of 340.25 times. At present, the share price is only 18.4 times 11 / 12 earnings, which is grossly undervalued.