Main points of investment:
Maintain the target price of 20.38 yuan and maintain the "overweight" rating. As the company's growth potential has shown a strong release trend, follow-up cooperation with War Investment, business diversification will further expand the performance growth space, we expect the company to forecast EPS0.31/0.38/0.44 yuan from 2016 to 2018, maintain the target price of 20.38 yuan and maintain the "overweight" rating.
Event: the company announced on September 1, completed the non-public offering to Shanghai Oriental Pearl New Media Co., Ltd. (47.02%), Tongfang Co., Ltd. (39.74%) and Dongxing Pu 3 Investment Fund (13.26%). The issue price is 18.18 yuan per share, and the total number of shares issued is 41529152 shares, with a total net raised of 739 million yuan.
The completion of this increase will have a positive impact on the follow-up performance of the company. Some of the funds raised will be used to repay bank loans, which will, to some extent, improve the operating pressure caused by the company's debt and have a positive impact on this year's results. The rest of the funds will be used to invest in next-generation radio and television projects, which will help the company expand its network hardware advantages and maintain growth.
The business cooperation with Battle Investment has entered the stage of full development to accelerate the release of endogenous potential. Another important role of this fixed increase is to introduce external high-quality partners to complement and win-win with the company's existing advantages. the smooth implementation of the fixed increase will make the three war investors formally enter into the company in the form of locking up for three years and deep binding of equity. With the help of the company's leading two-way network foundation, the coordinated development of Oriental Pearl, Tongfang shares, Dongxing Pu No. 3 Investment Fund (Jiecheng shares) and the company in the areas of high-definition interactive business, smart business and education cloud business will enter a comprehensive implementation stage, helping the company to achieve new business breakthroughs and performance growth at the same time.
Risk tips: slow expansion of new business, IPTV, OTT and other new media to intensify the risk of competition.
