Events:
The company announces a three-year plan for deep integration and development (outline):
1. Planning objectives: to consolidate the "leading" position of the central key news websites, strengthen the "leading" position of Internet content risk control, and gradually develop into a leading enterprise in content technology (ConTech). By April 2022, it will become the best quality original content provider, covering all mainstream content distribution channels, and become the most important content operation platform, risk control platform and aggregation platform on the Internet.
2. The company will develop in an all-round way around party building, talent team building, content capacity building, career development capacity building and support system construction. Career development capacity building around the content of the main industry, content operation, content risk control, content aggregation and other new business, around the main business layout of the Internet industry, the media field key projects.
3. The company participates in Renmin Zhongke (Shandong) Intelligent Technology Co., Ltd., which closely combines the artificial intelligence technology of the Institute of Automation of the Chinese Academy of Sciences with the content risk control ability of Renmin. Net to build the company's artificial intelligence technology engine in the next three years; and prepare to build the "State key Laboratory of Media Intelligence Cognition".
Comments:
1. As an online information interaction platform dominated by news held by People's Daily, the company has great social influence, and serves as the "flagship" of the integrated development of People's Daily and the people's Daily, maintaining the advantage of original content and promoting the innovation of the content industry. enhance the value of the platform. In 2018, people's Daily online set up subsidiaries such as people's audio-visual, people's information and people's data in the strategic layout of video, third-party audit and big data. In advertising business, strengthen the development of mobile, social, video, vertical platforms and other areas to achieve steady growth of advertising business; mobile value-added services to adjust the structure, reduce the input of traditional business resources such as mobile reading, at the same time focus on the development of mobile content risk control business. The 18-year total income is 1.69 billion yuan (YoY+21%), and the return net profit is 210 million yuan (YoY+139%). Of this, advertising service income is 780 million yuan (YoY+33%), accounting for 46%; information service income is 440 million yuan (YoY+25%), accounting for 26%; mobile value-added income is 310 million yuan (YoY-18%), accounting for 19%; and other business income is 160 million yuan (YoY+99%), accounting for 9% of the total income.
2. The company takes the Internet industry as the key layout, content risk control and other new businesses are developing rapidly, and the business model is gradually mature and beginning to take shape. In 2018, people's Daily launched a "third-party content review platform", which made a preliminary exploration around platform construction, standard-setting, technology research and development, etc. At present, the customers who have cooperated include: Shenzhen Quantum Cloud Technology Co., Ltd., Jinri Toutiao, Li Video, Migu Culture and other content start-ups, as well as China Mobile Limited, Aliyun and so on. In 2017, the revenue of the content risk control business was 15.81 million yuan (1.13% of the 17-year revenue), with a growth rate of 166% in 2018.
3. The company will make efforts in technology, cooperate with the Institute of Automation of the Chinese Academy of Sciences to create the background of artificial intelligence, reduce labor costs, and prepare to build the "State key Laboratory of Media Intelligence Cognition" to strengthen the leading position in the field of content risk control. Under the development trend of media integration, the company, as a supporting unit, prepares to build a national key laboratory for media intelligent cognition. The laboratory will carry out research on mainstream values algorithm and accurate communication, content intelligent audit and risk control rating, and national cyberspace governance in the field of content dissemination.
4. The content risk control industry is in the early stage of development, with the trend of specialization, scale and industrialization, and the industry scale will continue to expand with the development of Internet content industry. People's Daily, as a state-owned media, has a natural advantage in the content risk control industry, especially in the political testing scenarios with relatively higher pricing, while Internet enterprises tend to provide technical services and have a trend of integrated development.
With the rapid growth of ① Internet content industry, content security incidents occur frequently, regulatory policies become stricter, and content audit requirements and rules are gradually standardized. The Management Standard of Network short Video platform and the detailed rules of Network short Video content Audit Standard regulate the transmission order of short video from two aspects of institutional gatekeeper and content audit, and put forward operational audit standards.
The risk control object of ② content is the full range of content of the Internet platform, the key audit content is UGC, and the risk content judgment has the characteristic of fuzzy boundary; the audit mode is the combination of technology and manual mode.
③ participants: traditional state-owned media extend the content business chain, have natural genes in content risk control business, and have advantages in staffing, content audit experience, especially political testing with relatively higher pricing; Internet enterprises have technological and data advantages.
④ pricing mechanism: pricing model, detailed rules and standards, price level and so on are quite different. Political content scenarios are priced at a relatively higher level, pricing 1-5 times as much as other content scenarios. Internet enterprises take content ladder pricing as the mainstream mode; package payment and customization coexist; traditional state-owned media basically take B-end customer customization mode as the main mode in content review.
⑤ content risk control market space calculation: assuming that the content risk control investment accounts for 2% of the Internet content industry, according to the 18-year Internet content industry scale measurement, the content risk control market space is 16.24 billion yuan; while with the development of the Internet content industry, the content risk control market will continue to expand.
5. Profit forecast: we expect the company's net profit from 1919 to 21 to be 3.681,447 million yuan, respectively, corresponding to EPS 0.27, 0.33, 0.40, and PE, 63, 52 and 42X respectively, with a "recommended" rating.
Risk tips: policy change risk, Internet content industry policy change, content review related policy change; industry development progress and degree of development is not as expected, industry space is lower than expected; industry competition pattern change risk, the main body of participation increases rapidly, intensifies industry competition; technological change risk.
