The online application date for Jiangsu Cable IPO is 2015-04-15, and the issue price is 5.47 yuan per share. The company plans to be listed on the Shanghai Stock Exchange under the stock code 600959. The company intends to issue no more than 597 million shares, accounting for 19.98% of the total share capital after the issue, and the total share capital of the company will be increased to no more than 2.9881 billion shares after the issue. The total amount of the investment project raised is 4.706 billion yuan, and it is estimated that 3.122 billion yuan will be invested using the raised funds, and the deficiency will be solved by the company itself.
[investment advice]
The industry's leading radio and television cable operator has nearly 2000 subscribers. The company is currently one of the three major radio and television cable operators in China, and ranks among the top 30 Chinese cultural enterprises for five consecutive years. It is mainly engaged in the development and operation of radio and television network construction and operation, radio and television program transmission, data broadband services and digital television value-added services in Jiangsu Province. At present, it has realized the integration of radio and television networks at the provincial, municipal and county levels. As of December 31, 2014, the total number of cable TV users in Jiangsu Province is about 18.7 million, and the number of corporate Internet users is 17.72 million, including 7.48 million direct users and 10.24 million indirect users. We believe that with the growth of population and the further popularization of cable television in the future, there is still some room for growth in the total number of corporate Internet users in the future.
The basic network is of excellent quality and is in the lead in the industry. The company has achieved remote backup of provincial cable digital television centers, and large-scale deployment of NGB-level dense wavelength division bearer network and IP switching network with T-bit switching capacity. In the construction of backbone network, the provincial backbone network of Jiangsu Cable adopts advanced dense wavelength division system, the capacity of single optical fiber reaches 800Gbps, and dense wavelength division equipment is deployed on a large scale in trunk network for the first time in China. The provincial and municipal trunk network realizes "one network overhead and one network buried", which provides dual-route ring network protection for both underground and air channels, and the access network adopts EPON+EoC, CMTS, EPON+LAN and other access modes. Combined with the international advanced technology, aiming at the low-frequency EoC technology, the interconnection and interworking of provincial, municipal and county networks and full-service carrying are realized. High-quality network has laid a solid foundation for the company to better transmit TV programs, provide data broadband services and carry out digital TV value-added services. The degree of digitization and bi-directionalization are higher than the industry average: the digitization proportion of Jiangsu Cable in Jiangsu Province is 81.38%, the bi-directional rate is 60%, and the bi-directional permeability is 15%, all of which are higher than the national average.
Cloud media TV platform technology cash. Cloud Media TV is a new generation of digital TV platform independently developed by Jiangsu Cable, which can realize horizontal integration and Taiwan integration of multiple single-service vertical systems, as well as full-media, full-service operation and resource sharing. SARFT rated the project as "domestic initiative and international leader". Under the support of the technology platform, the company has the technical ability to carry out telecommunications and Internet services, and can realize the unified operation of traditional radio and television services, Internet services and telecom value-added services in television terminals. become a triple play integrated information operator and information service distribution platform.
In cooperation with upstream industries, there is huge room for development. The upstream of the cable radio and television transmission industry is the content industry and set-top box and other equipment manufacturing industry, while the downstream is directly facing TV users and broadband users. As a side of the pipeline in "cloud", "tube" and "end", we believe that the company is expected to gain more traffic in the future by working with upstream "cloud" (content and service providers) to grab entrances. Therefore, we are optimistic about the long-term development potential of the company.
The company is a leading cable company in the industry. We are optimistic about the long-term development of the company and suggest investors to actively apply for it. It is estimated that the net profit of the company belonging to the parent company in 2015 and 2016 is 927 million yuan and 1.192 billion yuan respectively, corresponding to 0.31 yuan and 0.40 yuan for EPS. Taking into account the better future prospects of the company, and with reference to comparable companies in the same industry, we value the company at 40 times PE in 2015, with a corresponding reasonable value of 12.4 yuan. Considering that the issue price is only 5.47 yuan per share, investors are advised to actively apply for it.
Risk hint: the market competition brought by triple play aggravates the risk.
