This report is read as follows:
The company continues to explore the application scenarios of intelligent radio and television in B-end, C-end and G-end, reduce the basic viewing business, and open up new growth points of value-added service business.
Main points of investment:
Cover for the first time, target price 3.95 yuan, neutral rating. The company adapts measures to local conditions, relies on the perfect network layout, continuously develops the B / G / C market through cooperation, and continues to cultivate new business growth points under the background of fierce competition in the basic viewing business. It is estimated that EPS0.11/0.10/0.11 yuan in 2019-2021, taking into account the diversified development of the company's intelligent radio and television business, the company will be given a valuation 35.9xPE which is higher than the average level of comparable companies in 2019, corresponding to the target price of 3.95 yuan, covering for the first time and giving a neutral rating.
From the basic viewing business to a variety of value-added services profit model transformation, interactive / high-definition / broadband and other value-added services continue to increase. The company's television backbone network is the first cable television network in the country to achieve buried and overhead channels and provide dual-route ring network protection, basically completing the two-way transformation of the city network above the county level, and has the ability to provide full service of interactive media. As of 2018H1, the company has an average of 45 interactive digital TV terminals per 100 households, and a total of 27.0331 million networked digital TV terminals, including 7.1659 million interactive terminals. By 2018, broadband / value-added services accounted for 15.4% of revenue.
Intelligent radio and television services have sprung up everywhere. On the basis of the general promotion of video surveillance and emergency broadcasting business in the province, and combined with the actual situation of various places, the company actively carries out intelligent radio and television new business type on B-side / G-side, such as smart city, smart community, intelligent township, intelligent park, and so on, to create a new brand of integrated business. Increase the content supply on the C side, increase the content supply of localized and differentiated public cultural services for different target users, and strengthen cooperation with governments at all levels to create government affairs and people's livelihood content. In the future, the company will be based on the new ecology of intelligent radio and television, combined with 5G, cloud computing, Internet of things and other next-generation information technology, explore the integration of application scenarios, enable the traditional customer collection business, and continue to promote service upgrading.
Catalyst: intelligent radio and television products continue, national grid integration landed
Risk hint: the progress of intelligent radio, television and national grid integration is not as expected, and policy risks