I. Overview of events
According to the semi-annual report released by the company, the operating income of the company was 227 million yuan, an increase of 350.78% over the same period last year; the net profit of shareholders belonging to listed companies was 12.1564 million yuan, an increase of 229.69% over the same period last year, mainly due to the consolidated statement of bus science and technology in the current period.
II. Analysis and judgment
The Video Division launched the Live live broadcast platform, and joined hands with Canxing to launch the fifth team of "China's New Song", with Xue Zhiqian as the mentor.
1. The video business has made a major adjustment in the product direction, from short video to mobile live broadcast, and joined hands with Canxing's top music variety show "China New Song" to select and form the fifth team on the LIVE live broadcast platform. On August 25, "China New Song" held a press conference in Jiaxing, announcing that Xue Zhiqian was the captain of team 5 of the new song live LIVE, and that team 5 students had the opportunity to challenge the new song cadets on the scene and participate in the finals of "China New Song" at the Bird's Nest on October 7. The cooperation between LIVE Live and Canxing's "China New Song" has changed the main competition system and production link of the program, and LIVE Live has been fully integrated into the production and production of variety shows. 2. We believe that this reflects the development idea of the company's LIVE live broadcast business, that is, continuous customer acquisition (users) through bundling high-quality content, and deep involvement in content production, through self-made or cooperative introduction of differentiated content, continuously improve the retention rate and activity of users. LIVE live broadcast business is expected to become an important platform for the company's mobile Internet strategy transformation.
The company is committed to creating a variety-focused mobile live broadcast platform based on PUGC content.
1. In recent years, mobile live broadcasting is in the ascendant and growing at a high speed, and the market pattern has not yet been determined. We judge that the reason why the company is actively entering the field of mobile live broadcasting is: on the one hand, the company follows the development trend of mobile live broadcast, devotes itself to creating a live broadcast platform focused on variety and extreme operation, so as to find new business growth points for the company's development; on the other hand, it is the company's strategic grasp of the transformation from outdoor public transport advertising to mobile Internet.
2. According to the company's vision, the content on the future LIVE live broadcast platform will be based on PUGC content, that is, most of the content will be carefully planned and professionally operated, such as the fifth team selection competition of "China New Song", which is jointly planned and organized by Canxing and bus online, user-produced content, this content production mode can not only obtain a large number of UGC content, but also ensure the high quality and professionalism of the content. In the future, the content dissemination of the company's LIVE live broadcast platform will also integrate the company's existing public transport media resources, through the dual-screen transport mode with mobile TV, train online celebrities to incubate the content of Internet students, and cut into the field of Internet culture.
The Media Division adjusts its marketing strategy to strengthen the resource coverage of An and B networks.
Under the industry environment of the overall decline of the media market, the Media Division adjusts the marketing, marketing and sales strategies. On the one hand, it unremittingly promotes the landing of the long-term strategy of "bus mutual entertainment product matrix" in the Internet transformation of public transport channels, on the other hand, it quickly formulates short-term sales strategies, increases the bundling of market and sales to promote customers, and provides professional broadcasting solutions in coordination with sales throughout the process. The company strengthens the resource coverage of An and B networks, speeds up the upgrading of mobile platforms, and starts the construction of "BUS+" public transport Internet channels; the short-term strategy is to create a simple and high-frequency advertising mode on the marketing product side, and to obtain customers' media budget in the fastest way.
Third, profit forecast and investment suggestions
We are optimistic about the deep cooperation between the company and Canxing "China New Song". The company is committed to creating a LIVE live broadcast platform focusing on variety and mainly producing PUGC content, and increasing user stickiness through continuous content cooperation and innovative operation mode. in the future, LIVE live broadcast business is expected to become an important platform for the company's mobile Internet strategy and develop into a new performance growth point of the company.
From 2016 to 2018, the company's EPS is expected to be 0.44,0.54,0.66 yuan respectively, corresponding to the current stock price valuation of 65.06,53.34 and 43.06 times, the reference Internet industry average PE of 85-100 times, corresponding to the company's 2016 reasonable target price of 37.40-44.00 yuan, given a "highly recommended" rating.
IV. Risk hints
1) the promotion of new business users and the operation and operation are not as expected as expected; 2) policy risk.