In line with the development trend of the media industry, the company continues to lay out innovative businesses and products such as cloud video service platform, public opinion monitoring, media think tank, intelligent party building and so on with video and digital strategy.
Main points of investment:
For the first time, the target price is 24.5 yuan, increasing the rating. Relying on the industry status of mainstream media platform and complying with the development trend of media, the company continues to create innovative businesses and products such as Xinhua Ruisi, cloud video service platform and intelligent party building with video and digital strategy, and cultivate new performance growth points. It is estimated that EPS0.50/0.60/0.78 in 2019-21. Considering the scarcity and performance flexibility of the company's content risk control and other businesses, the average valuation of the comparable company in 2019 is 49xPE, corresponding to the target price of 24.50 yuan, and the overweight rating is given for the first time.
The media value of the new force of the mainstream public opinion platform is prominent. Relying on the controlling shareholder Xinhua's authoritative status as a state news agency and its global information network as a world news agency, the company has become one of the most influential online media in China, with an average daily PV of more than 120 million as of 2019H1, with more than 370 million people covered by mobile devices. At the same time, the company operates the largest cluster of government websites and official Wechat account in China. The status of mainstream media platform brings large-scale, strong sticky user groups, and most of the users are social management people and professional and technical personnel, with large social influence, wide distribution and strong consumption power, which lays the foundation of the commercial value of the company's mainstream media.
Media integration under the background of internal and external repair, continue to expand digital business. The company complies with the trend of media online and video, steadily promotes the video strategy, builds and opens the first media creative workshop in China, runs Xinhua Cloud video service platform online, builds MR mixed reality intelligent studio, and launches a series of phenomenal digital content creative products, providing strong technical support for mainstream media to create high-quality content products. As a public opinion monitoring and analysis platform, Xinhua Ruisi, a subsidiary of the company, has accumulated 35 billion pieces of big data resources by the end of 2018. has served the Central Commission for discipline Inspection, the Organization Department of the CPC Central Committee, the propaganda Department of the Central Committee of the Communist Party of China and other ministries and institutions, central enterprises, state-owned enterprises and other hundreds of units.
Catalyst: innovative businesses and products such as Xinhua Ruisi and cloud video platform continue to land.
Risk hint: financial media digital content business development is not as expected, policy risk