Matters: recently, the company disclosed the major progress and stock resumption announcement, and the company signed the "letter of Strategic Cooperation and Investment intention" with Global all-in-one Network Technology (Beijing) Co., Ltd and Huaxia City TV Network TV Co., Ltd.
Peace viewpoint:
15Q1-Q3 performance: the company's 15Q1-Q3 realized operating income of 751 million yuan, yuan (- 33.50%YoY), net profit of 12 million yuan (+ 104.98%YoY), and operating cost of 508 million yuan (- 44.25%YoY) in the same period, mainly because the company strengthened customer management, abandoned customer orders with poor payback rate, and reduced invalid costs. The increase in net profit was mainly due to the increase in the comprehensive gross profit margin of the products and the reduction in expenses. The company expects that the overall return net profit in 15 years is expected to reach 3000 to 55 million yuan, turning losses into profits compared with the same period last year.
Join hands with Global Unification to realize the integration of industrial resources: universal Oneness is a joint venture between the former Youku Tudou Group and Guoguang Oriental Network, so Global Oneness, as a cloud-connected TV operator, has a CIBN license and Youku Tudou is rich in video content and network platform resources. Tongzhou will invest 50 million yuan to acquire 20% of its equity, and the two sides will carry out in-depth strategic cooperation based on cloud-connected TV resources such as content, license and network technology of Global University. at the same time, Global Unification promises to regard Tongzhou as the only partner in the new business expansion of the radio and television cable operator's platform. If the strategic agreement takes effect, the company will become the third largest shareholder in Global Unification. We believe that the strategic cooperation between the company and Global will form cloud compensation with the company's original R & D technology, production scale and channel advantages of radio and television operators, which is conducive to the transformation of the company to a TV cloud networking platform.
Hand in hand with Huaxia CityTV to build cloud-connected TV ecology: Huaxia CityTV is the only operating entity of City United Network Television (CUTV), and City United Network Television (CUTV) is the only organization officially approved by the State Administration of Radio, Film and Television to broadcast new forms of radio and television with emerging information networks as program transmission carriers, and owns network TV license, mobile TV license and cloud-connected TV content service license. Up to now, CUTV platform has 80 member stations and more than 300 cooperative media, covering important cities in 26 provinces and cities across the country. The company intends to obtain no less than 20% and no more than 25% of the shares of Party A by increasing capital in cash of about 100 million yuan. If the strategic cooperation agreement takes effect, the company will become its largest shareholder. We believe that the strategic cooperation between Tongzhou and CUTV is conducive to the sharing of resources between the two sides. In addition, the two sides will use Shenzhen as a pilot project to create a TV cloud networking ecosystem and a new entrance to TV cloud networking, and expand the national market.
Investment strategy: we estimate that the company's 15-17 year income is 10.81max 12.07 / 1.421 billion yuan, corresponding to 15-17 year EPS is 0.05pm 0.08max 0.13 yuan, corresponding to the latest share price PE is 235max 163pm, 93 times for the first time coverage, we give "recommended" rating.
Risk hint: the competition in the cloud-connected TV industry is becoming increasingly fierce, and the company's new business development is not as good as expected.