Main points of investment
An integrated media group that transforms new Internet media. The company was founded in 1998, the company's business throughout the radio and television network, film and television content, advertising production agents, investment, tourism real estate five major areas. In recent years, on the one hand, the company has carried out strategic cooperation with BABA and other giants to enhance its core competitiveness, and on the other hand, it has actively laid out new mobile Internet media in line with the trend of the mobile Internet era. In 2015, the company achieved 5.985 billion yuan in revenue, an increase of 9.34 percent over the same period last year, and a net profit of 381 million yuan, an increase of 14.68 percent over the same period last year.
The cable industry plays an important role, and the "cloud management end" leads the reform and transformation of state-owned enterprises. Cable radio and television has the dual attributes of ideology and industry. The cable industry is the media with the largest coverage. By 2014, the number of cable TV subscribers in the country had reached 233 million, the population coverage rate exceeded 98%, and the audience exceeded 1.2 billion. In the future, the evolution path of the role of cable operators is to change from a channel provider to an integrated service provider, from a single "management" to a comprehensive layout of "cloud management". In addition, the cable industry will also take advantage of its own users, resources and other advantages to expand the content industry chain to enhance its competitiveness with high-quality content.
The leader in the transformation of state-owned enterprises to create a vertical entertainment ecology. In recent years, the company has actively transformed the Internet new media, leading the reform, transformation and upgrading of the cable field, and carried out a series of cooperation and extension mergers and acquisitions.
On the one hand, the company has created a vertically integrated entertainment ecological layout on the basis of traditional cable users, and has initially created a vertical layout of channel + platform + content; on the other hand, the company has transformed from traditional advertising business to mobile marketing, forming a full-domain layout for its own brand advertising, effect marketing, mobile advertising platform, application / game distribution, mobile media platform and so on.
To create a top entertainment ecology, extension mergers and acquisitions actively layout mobile marketing, holding top investment management resources.
Since 2015, the company has actively created a top entertainment ecology, introduced BABA's rich entertainment content system, and strategically cooperated with Lions Gate, with an investment of US $375 million in the next three years to participate in global box office sharing. In terms of marketing, the company's traditional advertising business is supported and developed steadily by high-quality resources such as Hunan Satellite TV and high-speed rail. at the same time, the company actively arranges mobile marketing through a series of extension mergers and acquisitions. in the future, it is expected to maximize the synergy in the marketing field on the basis of online and offline big data. In terms of investment management, the company ranks first in the industry in terms of indicators such as 100% holding of China's top VC Dachen Venture Capital and IPO's withdrawal from the project in 2015.
Risk factors: macroeconomic system risk, M & A process risk and M & An integration business management risk.
Earnings forecast, valuation and investment rating: Anwo, Jiuyou combined table will further thicken the company's performance, taking into account the company will no longer acquire Guqiang and the slow pace of extension and other factors, we downgrade the company's 2016-2017 annual preparatory test EPS forecast of 0.52 pounds 0.62 yuan (the original forecast 0.70 pounds 0.99 yuan), add 2018 annual exam EPS forecast 0.71 yuan. The current price is 19.56 yuan, corresponding to 2016-2018 PE is 37-31-28 times. According to the results of distribution valuation, we believe that the reasonable market capitalization space for the company's cable business, advertising business, film and television sector, Internet business, investment management and tourism business is 18 billion yuan, 6 billion yuan, 4 billion yuan, 6 billion yuan, 5.25 billion yuan and 1.5 billion yuan, respectively. The reasonable market value space of the corresponding company is 40.75 billion yuan, and the corresponding target price after IPO is 26.81 yuan. In view of the leading position of the company's media in the reform and transformation of state-owned enterprises and relying on top resources such as Hunan Radio and Television and BABA, as well as the continuous catalysis of recent hot spots such as privatization and China Film shares, we maintain the company's "buy" rating. Investors are advised to grasp the medium-and long-term value of the company.
