Private placement of nearly 4 billion layout of "Internet video life circle". Huawen Media plans to issue no more than 242 million shares per share and raise no more than 3.9154 billion yuan to invest in "mobile video projects", "Internet TV projects" and "film and TV drama production and procurement projects" to create an "Internet video life circle". The company resumed trading on August 31.
The "Mobile Video Project" plans to invest 1.076 billion yuan, of which 76 million yuan will be transferred and increased by its subsidiary Guoguang Video, and 1 billion yuan will be set up to set up Huawen Zhiyun, a wholly-owned subsidiary of Guoguang Video, and increase its capital. Yongxin Shibo, a company listed on the New York Stock Exchange, developed customized professional mobile video cloud terminals on the basis of consultation and cooperation with Huawen Zhiyun.
The "Internet TV Project" plans to invest 1.2134 billion yuan, of which 1.0134 billion yuan will be transferred to Global Zhida and increase its capital, and 200 million yuan will be increased to Guoguang Oriental.
"Film and TV production and Purchasing Project" plans to invest 1.626 billion yuan, of which 920 million yuan is proposed to set up a joint venture with Youpengpule and increase its capital in order to enhance its content purchasing capacity; to enhance its content production capacity, it is proposed to set up a joint venture with Hairun Film and Television and increase its capital, and 206 million yuan to set up a joint venture with Wuzhi Digital and increase its capital.
Investment suggestion: the company's non-public offering involves building a mobile video cloud platform + Internet TV content and operation, greatly enhancing the content reserve by combining the two modes of "procurement + production" from the content side, strengthening the offline portal layout from the hardware side, and enhancing the platform cloud service capability from the server side. With the development of the strategic layout of the company's "Internet video life circle", the value of its mobile TV and Internet TV licenses is expected to be fully revalued. The company closed at 18.68 yuan per share on August 31, with a total share capital of no more than 2.293 billion shares and a market capitalization of 42.8 billion yuan, corresponding to 30 times and 24.4 times of PE in 15-16 years.
Risk hint: traditional business continues to decline; industrial integration is not as expected.