The company is the backbone of the central media "national team", and To G has obvious business advantages. Xinhuanet, a comprehensive news and information service portal sponsored by Xinhua, the state news agency, is one of the most influential online media in China. Xinhuanet has built government websites such as China Government Network, China Civilization Network, China Xiongan official website and China Internet Joint rumor dispel platform, and operates China's largest cluster of government websites and official Wechat account. As the company has the authority and credibility of the central media, the company has obvious advantages in opening up local government departments, state-owned enterprises, institutions and other related businesses.
The company's non-post-deduction performance increased by 20% in 2018, and the growth rate of new business is obvious. In 2018, the company achieved operating income of 1.569 billion yuan, an increase of 4.50% over the same period last year; net profit belonging to shareholders of listed companies was 285 million yuan, up 0.40% from the same period last year; and net profit belonging to shareholders of listed companies excluding non-recurring profits and losses was 200 million yuan, an increase of 20.56% over the same period last year. The company intends to pay a cash dividend of 2.48 yuan (including tax) to all shareholders for every 10 shares. Online advertising business is an important basic business of our company. The company's online advertising revenue in 2018 was 650 million yuan, an increase of 9.01% over 2017. Affected by the macroeconomic situation, industry customers continue to reduce the budget of online and offline activities, and the company's information service business revenue in 2018 was 377 million yuan, down 17.85 percent from 2017. But the growth rate of the company's new digital business is obvious. The company's mobile Internet business revenue in 2018 was 277 million yuan, an increase of 10.35% over 2017. The company's network technical service business income in 2018 was 159 million yuan, an increase of 31.97% over 2017. The revenue of digital content business in 2018 was 132 million yuan, an increase of 58.09 percent over 2017.
In 2019, the company will strengthen the mobile business and speed up the implementation of the integration strategy. In the face of the new situation, the company will strengthen the mobile business, strengthen the content construction of two microphones and one end, accelerate the implementation of the platform strategy of multi-terminal integration, improve the level of digital integrated marketing services, and promote the value transformation of traffic and user resources. Focus on digital content business, create high-quality cultural products, and explore multiple profit models. Build a technology-driven business cluster, meet the needs of the government and enterprise market, and continue to promote the large-scale development of the "Internet + Vertical Industry" project.
Optimistic about the growth potential of the company's new digital business and the leading advantages of central media, and giving a "recommended" rating, we predict that Xinhuanet's revenue from 2019 to 2021 will be 1.856 billion yuan, 2.138 billion yuan and 2.427 billion yuan, respectively, an increase of 18.28%, 15.18% and 13.53% over the same period last year. The net profit of returning to the mother was 336 million yuan, 382 million yuan and 426 million yuan respectively, an increase of 17.75%, 13.85% and 11.42% over the same period last year, and the corresponding EPS from 2019 to 2021 was 0.65 yuan, 0.74 yuan and 0.82 yuan respectively. For the first time, coverage gives a "recommended" rating.
Risk hint: the risk of substandard advertising business; intensified market competition; technical risk.