Main points of investment:
Borey Media is a large media group in the western region.
Borey Media is a large media management group, mainly engaged in advertising, education, games and other businesses. The company is a veteran advertising agency and well-known game development operator in the western region. at the same time, the company is also involved in micro-loans, financing guarantees and other quasi-financial business.
The actual controller is changed to Chengdu SASAC, which is beneficial to the follow-up capital operation.
In December 2016, the actual controller of Bouri Communication was adjusted and changed from Chengdu Commercial Daily to Chengdu SASAC, aiming to further straighten out and consolidate the management system of state-owned assets, standardize and strengthen the management of state-owned assets, and optimize the company's operating structure. so that the company's development platform has been further broadened. At present, as the only state-controlled cultural media listed company and capital operation platform in Chengdu, Borey Media will rely on Chengdu as a national central city to build an internationally renowned cultural and creative center. Make full use of the platform advantages of listed companies to undertake the important task of Chengdu state-owned cultural resources and asset securitization and promote the transformation and upgrading of the company's industry.
Continuous transformation: reducing burden and improving efficiency, and proposed injection of high-quality assets
Under the background of the continuous decline of the prosperity of the domestic traditional media industry in recent years, the three traditional media businesses represented by advertising, printing and distribution have experienced a strong impact. Therefore, since 2017, the company has continued to integrate and reform its existing business system and divest the printing / distribution business which has suffered serious losses due to the decline in the industry. In 2018, around the main line of "supporting the superior, turning the inferior, and cultivating the new", we will sort out the existing education, advertising and game sectors, optimize the business, and plan to purchase 70% of Chengdu Public Transport Media and 100% shares of Modern Media by issuing shares. to obtain Chengdu's bus advertising-related assets and business in the next 30 years. Therefore, on the whole, Boren Communication has a certain development driving force after continuous integration, and the future development trend continues to improve.
Investment rating and profit Forecast
We believe that the company is highly competitive in reform and concentration. Since 2017, the company has continued to carry out drastic reform and development, while strongly integrating its own business. The recovery trend of the overall performance has gradually emerged. According to the 2018 semi-annual report, the company achieved a total revenue of 328 million yuan from January to June 2018. The net profit belonging to the shareholders of listed companies was 17.8934 million yuan, an increase of 158.65% over the same period last year, reflecting the management's imperative and determined determination to forge ahead. At present, the market has a certain expectation difference for the development of the company, so it has certain investment opportunities. We cover the company for the first time and give the company an investment rating of "increasing holdings". Without taking into account the injection of public transport media and modern communication assets, the company's EPS is expected to be 0.04,0.05,0.06 yuan per share respectively from 2018 to 2020. Investors are advised to keep paying attention.
Risk hint
The progress of the company's reform is not as expected, the progress of M & A business is not as expected, the market policy risk, the media market boom continues to be low, and the risk of personnel loss.