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恒腾网络(00136.HK):有望成为垂直一体化流媒体平台

Hengteng Network (00136.HK): Expected to become a vertically integrated streaming platform

方正證券 ·  Mar 25, 2021 00:00

Main points of investment:

1. After the transformation, the company is expected to become a vertically integrated streaming media platform: Hengteng Network was originally mainly engaged in Internet home and Internet materials business, and then positioned as a streaming media company empowered by Internet technology. Hengteng Network announced in October 2020 the acquisition of 100% stake in Pumpkin Films Limited owned by Mr. Colleming for a consideration of HK $7.2 billion. Its assets include Ruyi Pictures, China's leading film and television production company, and Beijing Xiaoming. The latter pumpkin film is a rare membership-based non-advertising long video platform in China, which is currently in a period of rapid development. Ruyi Pictures' first-class film and television production capacity will provide content support for Pumpkin Film APP and help the growth of registered members and paid income of Pumpkin Film.

2. Film and television production companies produce excellent works frequently, and the dark horse at the box office during the Spring Festival is widely praised: Ruyi Pictures has strong content production ability and IP development ability, and has successively participated in the production of "to our lost Youth", "tiny Times", "the Old Boys' Dragon Crossing the River", "Sewing Machine Band", "Peach Blossom", "Animal World", "Chinatown investigation 1", "send you a Little Red Flower" and other cinema films. During the Spring Festival in 2021, Ruyi Pictures produced "Hello, Li Huanying" as the biggest guarantee distributor.

It has gained wide acclaim and triggered a heated discussion on the Internet. As of March 24, the film grossed 5.343 billion yuan, making it the runner-up in China's overall box office ranking, second only to Wolf Warriors 2.

3. The company's early main business includes Internet home business and Internet materials business. Among them, the household business covers furniture customization, household appliances, balcony cloth and soft decorations, decoration engineering and kitchen supplies, which can meet the needs of users' one-stop household consumption. The company has accumulated a lot of data in the direction of accurate user portraits and product style preferences, and is committed to improving the user experience in home marketing, logistics and distribution, installation and after-sales. At present, the Internet home service has been carried out in 450 projects in more than 200 cities across the country, providing home design and sales programs for more than 220,000 households. On the other hand, the Internet material business, fully relying on the mature hardcover supply chain management system in procurement bidding, product standards, distribution and supply, quality control, cooperative evaluation, service, etc., vigorously integrates the high-quality resources of the household building materials industry, covering building materials, furniture, customization, home appliances and soft equipment, and realizing the efficient coordination of the whole process of product design, production, procurement, sales and construction. Provide quality products and services for consumers, small and medium-sized real estate and decoration companies.

4. The company is ready to start after the acquisition of media Internet assets. Online, streaming media platform and excellent film and television production companies have a strong synergy; offline, shareholders Evergrande cinema and theme park resources are expected to explore the whole industry chain IP development with the company, it is recommended to pay attention.

Risk tips: policy regulatory risks; target performance is not up to expectations; internal integration of the company is uncertain; Internet home and other business progress is not going well; market style switching leads to downward valuation center and other risks.

The translation is provided by third-party software.


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