Main points of investment
Xinhuanet is the leading news website under the actual control of Xinhua News Agency. 1) the company's business is developing healthily, and its tentacles permeate many fields. The company is mainly engaged in online advertising, mobile Internet, information services, network construction and technical services. The total revenue from 2013 to 2015 was 4.56,6.34 and 998 million yuan respectively, with a growth rate of 39.09% and 57.38% in 2014 and 2015, respectively. 2) the main business structure has changed and the business is in a period of transition. After 2013, the proportion of online advertising revenue declined and the development entered a plateau. Mobile Internet services, especially mobile information services and mobile media services, are developing rapidly. 3) "Xinhua Review" and "Xinhua Live" have become the benchmark in the news field; the government website undertaken has won more than 30 awards; "Xinhua Mobile News" is the third largest mobile newspaper in China; and the first national news drone formation has been set up to launch the first generation of biosensor intelligent robot Sida in China.
The company has authoritative content resources and strong brand influence. 1) have the independent news editing right under the policy escort. The high barriers of the Internet news industry bring the company original, authoritative and other content advantages. 2) the actual control of Xinhua News Agency brings the advantage of resources. Relying on the news and information collection network covered by Xinhua News Agency around the world, Xinhuanet has a large number of dedicated contributions. 3) the resource appeal of the "Xinhua News Agency" brand for more than 80 years.
Profit forecast and valuation: the net profit attributed to the shareholders of the listed company in 16-17-18 is expected to be 2.97pm 3.32 / 370 million, respectively, and the corresponding fully diluted EPS is 1.43max 1.60max 1.78RMB respectively. With reference to the financing scale and the number of shares issued by the company, it is estimated that the final offering price of the company is about 27.69 yuan, corresponding to 17.3 PE in the year of 16x17 / 18, which is significantly lower than the average valuation level of the industry in the same period, and the stock price has a large upward space.
Risk hints: 1) the risk caused by the change of tax preference and government subsidy; 2) the deterioration of competition in the advertising market; 3) the promotion of mobile Internet business is not up to expectations.