With rich CCTV resources and strong competitive strength:
China Television Jinqiao has a very close cooperative relationship with CCTV, and the two sides have cooperated for more than 13 years. As of January 2013, the company has a total of 50 CCTV columns of advertising agency, the number of agency columns in the industry. In addition, the company can maintain stable profits in the harsh market competition environment. In recent years, China's advertising expenditure has maintained a steady growth rate of about 11%. It is believed that with the company's outstanding ability in operation and operation, as well as the huge demand for CCTV advertising from enterprises around the world, the company will record more sales performance in the future, while ensuring a certain profit space, the sustainability of the company is very good.
Actively layout new media to reduce the risk of a single system:
Taking into account the impact of new media industries such as the Internet and mobile terminals on traditional media in the future, the management of the company has actively implemented the media diversification strategy. at present, the projects invested include media resource platforms such as online video, mobile video and digital TV channels. The company set up its own agriculture-related portal Wugu in February 2012, and acquired the digital pay TV channel Global Wonder and Hangzhou Sanji Media in March and December 2012 respectively. Together with mobile TV platforms 100TV and CNLive, it has formed a "three-screen" media comprehensive development platform for TV, Internet and mobile phones.
The advertising time sales rate of the core column is expected to further increase:
In the future, the company will focus more on the CCTV core advertising period with higher profit margins and abandon some of the less utilized periods. The management of the company believes that in this way, the utilization rate of advertising time in the core program of CCTV in 2013 is expected to increase by 2 to 3 percentage points. At the same time, it also plans to increase the advertising price in the core period by 3 to 8 percent. It is believed that the company's overall performance in 2013 will be improved.
Pay attention and give a buy rating for the first time, with a target price of HK $5.40:
We forecast EPS of RMB 0.66 and RMB 0.77 for 2013 and 2014, respectively, and the current share price is HK $4.36, which is equivalent to 5.25 and 4.93 times PE of forecast 2013 and 2014 earnings per share. According to the PE valuation method, the target price is HK $5.40, which is equivalent to 7.9 times PE of 2012 earnings per share, which is 24% more than the current price. Because the company is in a leading position in the market, and the company has a long history of cooperation with CCTV, the cooperative relationship is very stable, and it also has very rich channel resources. It is believed that in the future, with the domestic economic recovery and the promotion of urbanization, the advertising industry will usher in a new period of growth, with the company's industry status and capital strength, I believe there will be huge room for growth; at the same time, the company's current price is equivalent to 6.3times PE level, lower than the historical median of 8 times PE, the valuation still has room to improve, it is recommended to buy.