I. events
Oriental Pearl releases its third-quarter report in 2020.
Second, our analysis and judgment
Q3 revenue fell slightly, cash flow is abundant and financial condition is healthy. In the third quarter of 2020, the company achieved operating income of 7.628 billion yuan, down 10.85% from the same period last year; the net profit belonging to shareholders of listed companies was 1.307 billion yuan, up 1.01% from the same period last year. In addition, the company has abundant cash flow. The net cash flow of Q3 operating activities in 2020 is 2.408 billion yuan, which is + 125.08% compared with the same period last year. It has a healthy financial position and strong ability to resist structural risks.
5G will promote the rapid development of "BesTV+" streaming strategy. China Radio and Television Co., Ltd. was officially established in October. Oriental Pearl, as one of the radio and television companies holding the largest number of shares in the State Grid Company, the opening of the 5G era provides an advantage for its development in the streaming media platform. The "BesTV+" streaming strategy released on September 3 will open up channels and content, big screen and small screen, private network and mobile Internet, online and offline, and create a user service system to achieve two-wheel drive of content and service. The company reported data show that the number of BesTV mobile monthly active users is about 81 million, the company's original huge user base may be directly transformed into "BestTV+" user traffic, the omni-channel entertainment and living service model created by the platform is expected to stimulate more consumption potential, and "BestTV+" is expected to provide significant performance increments for the company in the future.
Have a large number of copyright of boutique games, join hands to move into the field of cloud games. With the acceleration of the commercial landing of 5G, cloud games will develop rapidly based on 5G. On August 1 this year, the company officially became a strategic partner of China Mobile Limited Migu Kuaiyun Games. This time, it has joined hands with China Mobile Limited to enter the field of cloud games. It has the advantage of technology and content, and is expected to benefit early in the future cloud game market. The company introduces a large number of overseas 3A games, with the copyright of "Sonic Power", "final Fantasy 15", "doubt" and other games. This year, the company re-introduced "Magic Beast contract" and "Mithra Star", two games that performed better in Japan and won the version number.
III. Investment suggestions
The company has been trying to diversify its layout and continue to be optimistic about the company's medium-and long-term performance. It is estimated that the 20-year and 21-year net profit of the company will be 2.127 billion yuan / 2.653 billion yuan respectively, an increase of 4.11% / 24.72% over the same period last year, with a corresponding EPS of 0.62% 0.78 and a corresponding PE of 14x/11x respectively.
IV. Risk hints
The risk of intensified market competition, the risk of regulatory policy changes, the risk of intellectual property infringement, the risk of the impact of the epidemic situation, public health risk and so on.
