Continuous acquisition to achieve the landing of the "platform + content" strategy. Since 2014, the company began to put forward the "platform + content" strategy, transform new media and implement a series of mergers and acquisitions. From the point of view of the acquired targets, Guangzhou Yifeng, Yike Siqi and Zhangkuang Media jointly cover the Internet marketing section, Nine fingers are responsible for the distribution of mobile applications, Jiuzhirun deeply ploughs the game field, and Jinji focuses on the Internet audio direction. I'll be in charge of smart tourism right away. At this point, the complete industrial chain of Internet new media from content production to distribution and marketing has been initially established, the company's "platform + content" strategy has been initially achieved, and the ecological map of Internet new media has been gradually highlighted.
The investment business continues to innovate. The company's investment management business has set up a private equity fund management platform of "Dachen Venture Capital + Zhongyi Dachen + Huafeng Dachen", which is engaged in venture capital, art investment and industrial mergers and acquisitions respectively, showing a strong growth momentum. Among them, Dachen Venture Capital has become a leading brand venture capital organization in China, creating a professional PE/VC investment fund management platform, and has become a leader in China's PE/ VC industry. Zhongyi Dachen has been involved in the art industry since 2005-06. it has invested a total of 170180 works by modern artists and is a first-class art investment management platform in China. at present, the number of funds managed has reached 5, with a total scale of more than 2 billion yuan.
Traditional business is growing steadily. The loyalty of the company's pay-TV users is high, and TV subscriptions will remain stable in the coming year; the on-demand digital set-top box (DVB) will lead to a decline in live viewing time, but the extra time it brings will be huge; and the development level of smart TV in second -, third-and fourth-tier cities has even surpassed that of first-tier cities, and the future market is huge. Therefore, we expect the growth rate of the company's cable network transmission services to pick up somewhat. With the deepening of cooperation with BABA, taking the DVB+OTT platform as the carrier, carrying excellent film and television IP content, and mining the data watched by users in the past, the company can achieve personalized program recommendation, improve service quality and obtain more business benefits.
Profit forecast and investment rating: based on the company's total share capital of 1.418 billion shares, we expect the company to achieve EPS of 0.38,0.50,0.53 yuan respectively from 2016 to 2018, corresponding to the price-to-earnings ratio of 45, 35 and 32 times the closing price on September 8, respectively. In view of the company's continuous transformation of new media to achieve the steady landing of the "platform + content" strategy, it has been given an "increased" investment rating for the first time.
Risk factors: the development of DVB+OTT business is not up to expectation; the performance promise of the newly acquired company cannot be fulfilled; the film and television box office / audience rating is not up to expectation; the investment management business is not up to expectation, etc.