This report is read as follows:

The company relies on data and technical advantages to strengthen the one-stop integrated marketing service ability with digital marketing as the core, and continues to strengthen the deep cooperative relationship with customers.

Main points of investment:

Cover for the first time, the target price is 3.27 yuan, carefully increase the rating. The company's continuous layout based on big data's digital marketing business, and relying on the data platform to enable the traditional marketing industry, is expected to continue to integrate resources to provide advertisers with diversified one-stop integrated marketing business. It is estimated that 2019-2021 EPS0.12/0.14/0.17 yuan, the target price of 3.27 yuan, the first coverage to give a cautious overweight rating.

Relying on China Telecom Corporation, many businesses go hand in hand. As one of the earliest advertising companies in China, the company has formed a long-term and deep cooperative relationship with many advertisers. At the same time, the company complies with the development trend of the industry and develops digital marketing through extension mergers and acquisitions, and has become a first-class integrated marketing service provider across brand planning, public relations, traditional media advertising, digital marketing and content marketing.

Brand management has broad prospects for development, and digital marketing occupies the mainstream position of integrated marketing. Income growth leads to the continuous increase in the number of mainstream + value consumers in China, and the promotion of consumer brand awareness has become the most fundamental driving force for enterprises to transmit brand value through marketing, and the future development of brand management is expected. At the same time, the advertising industry has transformed to technology-driven digital marketing, and digital advertising has occupied an absolutely dominant market share. Big data + artificial intelligence + online and offline scene fusion brings more possibilities for integrated marketing with digital marketing as the core.

With big data as the starting point, we will promote the transformation of the marketing business of the province. The company relies on diversified one-stop integrated marketing business to establish long-term and stable cooperative relations with many high-quality customers, and at the same time, complies with the development trend of the industry, and constantly strengthens the digital marketing ability with technology and data as the core. Build more consumer research tools to meet different industries and different marketing links, and launch richer consumer insight products to strengthen the application and realization of big data technology in different marketing scenarios.

Risk hint: uncertainty caused by industry competition, brain drain and asset impairment