Content, platform, terminal intensive release, "cloud-network-edge-end" advantage cast 5G pan-cultural enabling platform during the telecom festival, the company, together with China Telecom Corporation, intensively released Tianyi Yun game capability platform, Tianyi Cloud AR, customized VR Touxian and other services and products. The company fully demonstrates the capability of the "enabling" platform, enriches the product line of VR/AR business, and completes the end-to-end capability closed loop of VR business. At the same time, relying on the cloud network advantages of Telecom Group, the attribute of "enabling" platform is constantly being verified, and the capital-intensive "copyright hegemony" development model has gradually become history. The company is expected to rely on the operational advantages of differentiated content distribution to gather a large amount of high-quality content resources at a lower cost. Relying on the deep sinking channel resources and terminal collection capacity of telecom, the company is expected to continue to take the lead in the management of content-terminal strong coupling 5G native applications represented by VR. We maintain the company's 2020-2022 homing net profit of RMB 180 million, respectively, and the corresponding EPS is RMB 0.52 and 1.16 yuan respectively. The current share price corresponds to the PE of 75.76max, 33.32 and 14.78 times from 2020 to 2022, respectively, maintaining the "buy" rating.
Tianyi Cloud AR opened a virtual obvious new blue ocean, thousands of yuan customized head show accelerated VR business expansion on May 17, the company signed an AR cooperation agreement with South Korea's LG U+ and launched a new 5G application-"Tianyi Cloud AR". In addition to the exclusive introduction of LG U + high-precision live star AR content, the company will also introduce its leading light field modeling technology to open up a new blue sea of AR virtual stars. On the same day, the company also joined hands with Skyworth, PICO, Love Enterprise and other front-line terminal brands to release a number of customized versions of VR terminals. The in-depth customized version of "small V all-in-one" has become the first VR all-in-one machine to break through the thousand yuan threshold in the whole network, and the price is only 699. Through deep cooperation with Skyworth and other terminal manufacturers, the company can not only complete the end-to-end closed loop of VR business, but also rely on the resources and experience of terminal manufacturers in the operator market to accelerate the rapid expansion of 5G applications in provincial branches.
"Feiyun" platform empowers game industry chain partners to seize the opportunity of cloud original game market with Perfect World. On May 16, China Telecom Corporation officially released cloud game capability platform "Feiyun" and joined hands with intelligent TV factory to provide "cloud network edge" integrated solution for cloud game industry chain partners. at the same time, it also jointly released the first cloud original game "New God and Magic mainland" with Perfect World. In the context of meeting the high bitstream rendering and push capabilities, Telecom will also accelerate the layout of GPU capabilities to further reduce latency. Driven by the accelerated deployment and development of cloud games by Telecom, the company will benefit significantly from the aggregation of high-quality content and user expansion.
Risk tips: 5G business promotion is not as expected, industry competition is intensified, mixed reform plan is lower than expected, etc.