The pressure of competition in the radio and television industry is becoming increasingly serious, and all parties demand to promote the smooth progress of radio and television + VR and large value-added services. Although the video and other industries led by the Internet have made earth-shaking development in the past few years, the development of radio and television operators is still slow under the shackles of system and supervision.
As a result, the cable TV industry is facing the competitive squeeze of the Internet, telecom operators and other formats, and generally has the driving force to actively promote the transformation. For example, Hubei Radio and Television and other active pilot radio and television + VR, we believe that other radio and television operators are also expected to be promoted by all parties. Jiachuang's video layout of large value-added services and radio and television + VR services are exactly in line with the advantages and demands of radio and television's large bandwidth, and are expected to become leaders in the new stage.
The company continues to make great efforts to lay out its value-added services in radio and television. The company has invested 200 million yuan in video (100 million yuan in 2016) and in education in fingertip cities ("run").
Education) invested 60 million yuan in games, invested 150 million yuan in IPTV game developers, and invested 100 million yuan in the field of VR technology. Thus, the deployment of "video content refinement operation", "video game", "education", "online and offline development", "VR and panoramic video" and other deployments have been completed in the large value-added service. In the future, the operating rate, conversion rate, consumption rate and renewal rate will be improved through content upgrading, integrated packaging of high-value packages and fine operation, thus increasing the ARPU value, thereby enabling the company to obtain incremental benefits in the industry.
The company is leading in radio and television + VR technology, leading the layout, leading the industry, and has the necessary conditions for success. Since the company announced the signing of "Virtual reality + Radio and Television Cooperation Agreement" with four national key laboratories in March 2016, set up Vision Technology in April 2016, signed "Virtual reality + Radio and Television Cooperation Agreement" with Tianwei Video, signed "Virtual reality industrialization Cooperation Operation Agreement" with Hubei Radio and Television, and signed "Virtual reality + Radio and Television industrialization Cooperation Agreement" with Jilin TV Media in May 2016. The investment in Youpengpu and the numerous acquisitions in September 2016 reflect the firm optimism and strong execution of the company and partners on Radio and Television + VR. In addition, the company's own terminal (multi-terminal manufacturer cooperation experience and business capabilities), capital (low debt ratio, listed company platform, high rating), technology, operation (team, content, UI design and operation), system (private enterprise, market-oriented system) five capabilities and advantages, have the conditions and motivation to complete the above strategic deployment. Recently, the company has demonstrated the application of its VR live broadcast and VR on demand technology in the radio and television network, as well as the broadcasting of VR video and panoramic video content in the radio and television network, which is the first in China, and similar technology has not been found in the world, which is the only company that can solve related technical problems. The standard and technical threshold of radio and television are very high, so this technological breakthrough has the significance of an industry milestone.
Cable TV tuyere may be coming, the company's layout is firm, and it is expected to rise in the new era of cable TV. 1) with technological progress, TV will change from the era of tools in the past to the intelligent era of home entertainment center, which increases the functions carried by TV and the consumption generated here, and increases the ARPU value; 2) the penetration of TV channels is high, the number of OTT in China has reached 165 million units in 2015, and the cost of obtaining customers is relatively low, OTT has become a high-value blue ocean market to be developed urgently.
Profit forecast and investment rating: cover for the first time and give "overweight" rating. We expect the 2017-2019 company to realize a net profit of 0.18, 022, 0.030 million yuan, corresponding to an EPS of 0.04, 0.05 and 0.07, respectively, and a higher valuation, corresponding to a closing price of 259, 209 and 153 times PE on February 27, 2017, respectively. Considering that in mid-December 2016, the actual controller of the company promised not to reduce its holdings within one year, and planned to increase its holdings at RMB 15 million within three months, the net profit of homing in 2016 increased significantly by 90.38%. Although the 2017Q1 performance forecast is at a loss, it is mainly due to the characteristics of the company's business model and is expected to pick up in the coming quarter. Coverage for the first time, giving the company an "overweight" rating.
Risk hints: cable TV industry development is lower than expected risk; technology research and development is not up to expected risk; product user acceptance is not up to expected risk; and so on.
