China Daily operating data: from January to June 2014, the company achieved operating income of 705 million yuan, down 22.19% from the same period last year; realized net profit belonging to shareholders of listed companies-156 million yuan, equivalent to-0.23 yuan for EPS; and the gross profit margin of the main business was 20.47%, down 4.31% from the same period last year. At the same time, it is expected that the net profit attributed to shareholders of listed companies from January to September 2014 is between-245 million yuan and-235 million yuan.
Summary of the report:
The competition in the industry is super-fierce, and the company's revenue is under great pressure. Under the impact of Internet enterprises represented by Letv and IT manufacturers represented by Huawei, the domestic set-top box market has become super-hot, and the revenue pressure of traditional manufacturers is huge. Only reform can save themselves, but the change can not be achieved overnight, and the pains of transformation are inevitable.
DVB+OTT is actively promoting. Since September 2013, the company has signed "DVB+OTT" TV Internet cooperation agreements with Henan Cable, Northern United Radio and Television and Gansu Network. At present, the layout of Liaoning, Gansu, Guizhou and Hunan has been completed, of which Guizhou is expected to achieve more than 1 million users this year. Since June this year, the State Administration of Radio, Film and Television has issued four articles to strengthen the supervision of smart TVs and smart boxes, from which the company is expected to benefit.
Efforts will be made to transform TV Internet operators, or something to look forward to. At the DVB+OTT forum in July, the company revealed that it will devote itself to the transformation from a set-top box manufacturer to a TV Internet operator, involving education, games, e-commerce, finance, lottery, community and other fields, so as to provide intelligent set-top box terminals and value-added services for radio and television transformation. The situation of the battle for the living room has become clear, not in the struggle for hardware such as boxes, but in the struggle for value-added services behind it. This transformation is like a second venture, which is difficult, but it is necessary: on the one hand, the radio and television system hopes that the relevant supporting manufacturers can provide value-added services to cope with the impact of Internet enterprises and telecom operators, on the other hand, it is also related to whether the company can break through the bottleneck of development and open up new growth space.
Profit forecast and investment value: the company's EPS for 14-16 years is expected to be 0.07,0.12 and 0.21 yuan, corresponding to price-to-earnings ratios of 137.4, 79.8 and 45.5, temporarily downgraded to overweight.