19Q3's single-quarter results were lacklustre, with steady revenue growth and a decline in net profit in the first three quarters.
China Television Media 2019Q1-Q3 achieved revenue of 532 million yuan, an increase of 8.52% over the same period last year, with a net profit of 75.7944 million yuan, down 2.12% from the same period last year. Net profit after deducting non-profit was 65.8407 million yuan, down 10.7% from the same period last year. Of this total, 19Q3 achieved revenue of 150 million yuan, down 9.60% from the same period last year, and its net profit was 12.2258 million yuan, down 48.17% from the same period last year. The net profit after deducting non-profit was 7.3037 million yuan, down 66.45% from the same period last year.
19Q1-Q3 gross profit margin was 30.4%, down 5.76pct from the same period last year; the impact of advertising reduced the net operating cash flow.
In terms of expenses, the sales expenses of Q1-Q3 Company in 2019 were 21.8062 million yuan, down 5.2% from the same period last year, the sales expense rate was 4.1%, down 0.6 pct from the same period last year; the management expenses were 43.9044 million yuan, up 15.8% from the same period last year, and the management expenses rate was 8.3%, up 0.5 pct from the same period last year; the financial expenses were-4.735 million yuan, and the absolute amount was 9.7% lower than the same period last year. In terms of cash flow, the net cash flow from operating activities in the first three quarters of 2019 was-34.9546 million yuan, a decrease of 102 million yuan compared with the same period last year, mainly due to a decrease in net cash flow from advertising business activities compared with the same period last year.
Since the beginning of this year, the policy engine of the state-owned financial media has been continuously promoted. China Television Media is a platform under CCTV, and its Northern China Television has deeply cultivated its ultra-high definition business, and has set up a financial media fund, which is in line with the direction of policy development.
On July 17, the General Manager Office of the Central Radio and Television General Station was established, proposing "building a new type of international first-class mainstream media", "industrial management ideas should be further innovated and developed", and "constructing the main station management system." to realize the strategic blueprint of big culture, big capital and large operation "," strengthen the integrated allocation of resources, make full use of market-oriented means, expand and optimize the main station industry ", and" cultivate the ability of capital operation. Explore mixed operation and equity incentive reform, with "culture + finance" to make up for the shortcomings of development and other development ideas. On August 19, the State Administration of Radio, Film and Television issued the opinions on promoting the High-quality Development of Radio, Television and Network Audio-visual Industry, once again strengthening and speeding up the construction of HD TV and 4K/8K ultra-high definition, especially proposing to support listed enterprises to become stronger and bigger, and encourage listed enterprises to actively and steadily carry out cross-regional, cross-industry, cross-ownership mergers and acquisitions. Radio, television and Internet audio-visual flagship enterprises are encouraged to initiate the establishment of equity investment funds to actively participate in market mergers and acquisitions.
Investment suggestion: China Television Media is driven by the troika of film and television, advertising and tourism. The company's performance rebounded in 18 years. Advertising business continued to pick up in the first half of 19, with revenue growth of more than 30%. But Q3 single-quarter revenue and profit performance is lacklustre. Focus on Q4 performance. We temporarily maintain the company's 2019-2021 return net profit of 157 million / 189 million / 218 million yuan respectively, a year-on-year increase of 36.9%, 20.6%, 15.4%, corresponding to 33.7x/28.0x/24.2x, respectively, of which the company and the Spring and Autumn period (the court ordered the defendant to repay 15 million yuan of investment in the Spring and Autumn period and pay the relevant liquidated damages), and the arbitration is in progress. It will have an impact on profits in the later period. We continue to be optimistic about the direction of financial media since the beginning of the year, focusing on the policy rhythm. As a media listing platform under CCTV, CCTV is expected to get another development opportunity to maintain its buy rating under the wave of media integration.
Risk tips: the coordination of resources between the company and shareholders is not up to expectations, the impact of macroeconomic on advertising, the impact of new media and new technology competition, film and television project production and sales are not up to expectations.