Enter the live e-commerce market, CCTV version of MCN is ready to go.
On June 15, the company joined forces with Foshan TV Station and Beijing brilliant Xingguang and Shun Control Group, the leading e-commerce live content service company in China, to set up a live broadcast base in the Great Bay area of China Television, which accounts for 35% of the shares.
Relying on CCTV and joint head MCN, the company is expected to rise rapidly in the field of MCN by virtue of its unique competitive advantages: (1) rely on CCTV brand power to obtain traffic support from various live broadcast platforms; (2) undertake CCTV resources, output CCTV host's brand influence and powder-carrying ability; (3) rely on the basis of brand advertising cooperation, organically combine CCTV advertising resources with live broadcast formats to achieve business model innovation. (4) Multi-party cooperation to establish a live broadcast base, the model has a strong replicability.
CCTV is the only listed company to undertake the new mission of media transformation and exploration.
The company is the only listed company held by CCTV, which undertakes the new mission of exploring the transformation of CCTV's traditional media: TV advertising revenue continues to decline, CCTV's financial allocation is greatly reduced, and CCTV urgently needs transformation and development. As a CCTV holding listed company, CCTV Media undertakes the mission of CCTV transformation and exploration.
The company's key layout direction: (1) develop live broadcast e-commerce, seek multi-party cooperative business advantages, serve the real economy while invigorating Taiwan's memory resources, and achieve the growth of business income; (2) power 4K ultra high definition, cater to the new trend of 5G and the national ultra high definition industrial policy, continuously improve the quality of media content, and serve the CCTV ultra high definition strategy. (3) actively explore the new mode of capital operation and intervene in the media industry chain through fund investment to maintain the momentum of sustainable development of the industry.
CCTV resources support the increase, and the rebirth of the company is in sight.
Since 2019, CCTV has continued to increase its support for the company's resources. with the support of CCTV and the release of its own business vitality, Nirvana is in sight: (1) CCTV has granted the advertising agency of agricultural and rural channels to the company. the company's advertising business has reached a new level, and the company is expected to obtain advertising resources from other channels to achieve further development in the future. (2) the CCTV host helps the company's live broadcast business, and the continuous output of brand resources will accelerate the rise of the company's live broadcast business; (3) the head office reform and the company's active change, the company's business development is more positive and enterprising, continue to explore new business, the company is in sight of Nirvana rebirth.
Profit forecast
It is estimated that from 2020 to 2022, the company will realize operating income of 11.76,22.51 and 2.792 billion yuan respectively, net profit of 1.24,2.69 and 334 million yuan respectively, EPS of 0.31,0.68,0.84 yuan respectively, and PE of corresponding stock price of 48,22,18 times respectively. Coverage for the first time, giving a "overweight" rating.
Risk hint
The epidemic affects the start-up risk of film and television projects; the anchors or hosts of live broadcasts directly affect the development of business, and there is a risk of core brain drain; macroeconomic downside risks.