Relying on the advantage of capital, the company steadily promotes the strategy of all-media and big culture. Huawen Media, formerly known as Haikou Pipeline Gas Company, began to operate through continuous capital operation in 2006, the industry extended to newspapers (Chinese businessmen, Times Media), broadcasting (Guoguang has full license qualifications), education (silly education) and other fields. in the layout of the industrial chain, the layout of "big culture" along the upper and lower reaches of the industrial chain continues to fall in the aspects of content creation, product distribution and channel construction.
The new layout highlights the key strategic development direction of new media. In 2014, the company acquired four targets as a whole, continuing to extend its previous strategy and strengthening the direction of new media: 1) anime culture (leading animation enterprise) layout of content production in the upper reaches of the industrial chain, laying a solid foundation for subsequent content derivative development; 2) palm view of Yitong Luozi mobile video service, and increase front-end charges on the basis of this front-end paid business model, which is closer to consumers 3) expand the cultural layout to outdoor media, and form coordination with previous print media and broadcasts; 4) on the basis of the Internet of the company platform in the future, the public opinion monitoring service of Bangfu Software will further develop the industrial value.
Under the new industrial environment, the value of OTT license is revalued, and the company seizes the opportunity to accelerate the layout of new media.
The company has the omni-channel license of Internet TV on PC, Mobile and TV. Under the background of the rapid development of Internet TV industry and the continuous strengthening of Internet TV supervision by the State Administration of Radio, Film and Television for 14 years, the company has a stronger ability to gather and integrate industrial resources in the Internet TV industry with the advantage of license. And has in-depth cooperation with Youku Tudou, Unity, Huawei, Tianmai Technology, Oriental Golden Harvest and other industrial upstream and downstream companies to initially build the Internet TV industry ecology, and is expected to take advantage of the license to join hands with Internet video leaders such as Youku to accelerate the development of TV OTT business.
Investment suggestion: it is estimated that the net profit of the original business for 15-16 years (taking into account investment income) is 11.4 yuan, 1.27 billion yuan, EPS0.62, 0.67 yuan; considering the 14-year M & A results, the 15-16-year pro forma performance is 14.1 yuan, 1.63 billion yuan, EPS0.71, 0.82 yuan, corresponding to the current stock price of 14.75 yuan PE21, 18X. In the context of the reform of the OTT industry, the value of the company's Internet TV license is expected to be revalued, and take this as an opportunity to accelerate the revaluation of the company's other resources system and transform to new media, which is expected to become a model for the integration of new and old media in state-owned enterprises, with a midline rating of 30 times PE, a target price of 21 yuan, and a "buy-A" rating.
Risk hint: traditional business continues to decline; industrial integration is not as expected.