Incidents:
On December 31, 2019, the BILIBILI2019 New Year's Eve party hosted by Xinhuanet and Station B was broadcast live on the same day with 34 million hits. Station B's New Year's Eve party received 43,000 reviews and received a rating of 9.9. On January 6, 2020, Xinhuanet and Xiaohongshu released the “Gen Z Lifestyle News” data report. Through data mining and analysis of Xiaohongshu's post-95 user behavior data, it reflected the living conditions and consumption concepts of Gen Z young people when they first entered the workplace. Xinhuanet is approaching the second dimension and the Z generation and implementing integrated development.
Commentary:
The value of the all-media product chain platform is outstanding, with strong content leadership, wide coverage, strong communication, and high quality users and customer groups. According to the 2019 three-quarter report data, the company achieved revenue of 924 million yuan, a decrease of 4.35% over the previous year, and the net profit of the mother was 157 million yuan, a decrease of 10.1% over the previous year. As the main force of the country's key news websites, Xinhuanet provides the most authoritative and timely news and information services to netizens around the world. Currently, it has 31 local channels and channels in multiple languages, and publishes 15,000 articles per day in multiple languages and terminals. Users span more than 200 countries and regions, with more than 120 million daily page views on desktop and more than 3.7 billion people per day on mobile. The number of users is large and sticky. Most of the users are social management groups and professionals and technicians at various levels. The characteristics are shown by great social influence, wide distribution, strong consumption capacity, and great marketing potential. At the same time, the company is laying out a cloud video service platform and a new business for smart party building.
The company continues to pay attention to emerging consumer groups, grasp Gen Z consumption trends, help B stand out of the circle, and actively embrace Internet users. As the official media, Xinhuanet first voiced support for the content of Station B's gala. Through the New Year's Eve party co-hosted with Station B, the younger generation got to know Xinhuanet again and brought Xinhuanet closer to young people. At the same time, Xinhuanet collaborated with Xiaohongshu to accumulate Gen Z consumption data, grasp the normal state of Gen Z's material consumption, and uncover the three new trends emerging in the new generation — watching exhibitions, pets, and Aidou, so as to further understand Gen Z users and achieve a forward-looking layout to monetize the next generation of users.
Optimistic about the company's new media business and the integrated development potential of the central media platform, maintain the “recommended” rating.
We maintain our forecasts for 2019-2021 to achieve revenue of 1,856 million yuan, 2,138 million yuan, and 2,427 million yuan respectively, up 18.3%, 15.2% and 13.5% year-on-year; Guimu's net profit was 336 million yuan, 382 million yuan, and 426 million yuan respectively, up 17.7%, 13.8% and 11.4% year-on-year. As a central media leader, the company grasped the consumer trends of the new generation and continued to maintain a leading attitude based on platform advantages. Maintain a “Recommended” rating.
Risk warning: Risks such as increased competition and technology application risks, and integrated media business development falling short of expectations
