Main points of investment:
Cover for the first time, the target price is 12.6 yuan, increase the rating. The company strengthens its operational capacity and content reserve, enhances the value of CATV network under the background of triple play, actively develops smart city business, explores the grass-roots governance of intelligent radio and television, and creates new business growth points. It is estimated that EPS0.56/0.50/0.52 yuan from 2019 to 2021 will be given an average valuation 22.5xPE of comparable companies in 2019, corresponding to the target price of 12.6 yuan, covering for the first time and giving an overweight rating.
Save quantity to promote increment, take user experience as the core, enhance the realization of network value. Continue to explore and innovate to enhance the user experience in user-end companies. As of 2019H1's 5.9732 million registered cable TV users, about 170000 new HD interactive (including 4K intelligent set-top boxes) users have been added, and the cumulative number of HD and UHD interactive users has reached 5.37 million. Actively adjust the market strategy to cope with the competition in the broadband market, and the distribution of users continues to shift to high bandwidth: the proportion of high-bandwidth users with 35m and above increased from 44.5% at the end of 2018 to 51.5% of 2019H1. We will vigorously develop ultra-high definition and Internet video content on the content side and promote the development of new media business. the HD interactive platform transmits 184 sets of digital TV programs, and the number of online video-on-demand programs exceeds 150000 hours. among them, HD / UHD programs account for more than 80,000 hours, accounting for more than 55%.
Actively participate in the construction of financial media at two levels in urban areas and carry out the construction of smart cities. The customer-gathering business represented by the smart city has become the engine of the company's transformation. The company actively participates in the construction of the smart city and fosters new sources of income and profit growth. 2019H1 continues to promote the Xueliang project in Tongzhou / Changping / Pinggu. In addition, it explores the grass-roots governance of intelligent radio and television, and makes use of Gehua cable network to promote the integration of work, mobile and TV. Accurately and quickly respond to the demands of the masses and at the same time open a new breakthrough for the company's intelligent radio and television business.
Catalyst: expansion of intelligent radio and television application scenarios, landing of national network integration
Risk hint: the development of intelligent radio and television projects is not as expected, and the progress of national grid integration is not as expected.
