TV Internet is a vast blue sea, the inflection point of the industry has arrived. Television Internet has been on the eve of the outbreak, the start-up conditions are ready, television is the most valuable Internet portal at the current point of time, will usher in explosive growth. At present, the biggest obstacle to the television Internet is the inefficient human-computer interaction, which has been effectively solved by the same continent. The TV Internet is of great value: watching videos close, games in the middle and smart homes in the distance. We believe that the TV Internet will develop in a trilogy of video, games and smart home control platform, video business will continue to break out in 14 years, games are entering a period of rapid development, and smart home will also begin to be introduced. As the so-called big screen wins the world, there is no doubt about the value of the TV screen.
Tongzhou DVB+OTT solution is the best solution for TV Internet at present. DVB uses broadcast transmission technology, which is the best technical means of live television, while OTT uses point-to-point forwarding transmission technology, which is the best technical means of video on demand. DVB+OTT is the best solution for TV Internet at this stage! Tongzhou based on the experience of flying products ahead of time, the only thing that can really achieve small screen control, large screen, small screen, control 0 delay, so that TV control is like a smartphone, is the best choice! This kind of leadership comes from long-term innovative research, which is difficult for competitors to surpass in the short term. The transition from products to Internet services in the same continent is just around the corner. Reason: 1) the product area: the control strength covers a wide range of areas, and the synergistic effect between multiple products is an interesting point. 2) time machine side: the company and radio and television DVB+OTT business occupy "time, place, people and harmony". 3) user side: users get substantial benefits, high acceptance, and easy business promotion. 4) Capital side: additional issuance helps, capital pressure is not big, income elasticity space is big. 5) content aspect: Tongzhou will step up content construction, and controlling elegance will make up for the temporary deficiency of OTT content.
The secure mobile phone service is based on the only domestic commercial 960 OS operating system, and there is a lot of room for imagination to go to IOE. The openness of Andriod leads to its high market share and low security. Party, government, military and other specific markets and business people have a strong demand for Andriod to go to IOE. Secure mobile phone is the best solution for intelligent terminals to IOE at present, with a potential user scale of 3000 ~ 60 million.
Profit forecast: we expect the operating income from 2014 to 2016 to be 25.6, 3.244 billion and 4.09 billion respectively, and the 2014~2016EPS of the company in terms of current equity is 0.11,0.22,0.37 yuan respectively. The PE multiples are 64x, 33x and 19x respectively, and the valuation is on the high side in the transitional period. However, considering the high probability of successful transformation and huge prospects, it is upgraded to the "buy" rating.
Risk hint: the implementation of the cooperation agreement with the Radio and Television Department is lower than expected, the market competition environment is deteriorating rapidly, company management risk, policy risk, industry systemic risk, macroeconomic risk.