Main points of investment

The strategy of large value-added service of radio and television has been opened. The large value-added service strategy of Radio and Television means that the company provides refined operation services such as video, VR, games, education and other content, that is, combining relevant technology platforms, software, integration, services and terminal software and hardware technical solutions, and making use of the channel advantages of provincial cable networks, to provide end users with a package of large and small screens, including video, VR, games, education and other related services.

The content side continues to be distributed in the fields of VR, film and television, games and education. 1) the company uses its own capital of 100 million yuan to set up Beijing Yijing Technology Company to actively carry out VR business by making use of its own advantages of radio and television channels to open up all technical links of transmitting VR content through radio and television channels. 2) invest 100 million yuan to invest in Beijing Youpengpule through transfer and capital increase, and distribute radio and television content. 3) invested 150 million yuan to complete the acquisition of 100% equity in Shaanxi Dianteng Interactive, improving the layout of the game; 4) dabbling in educational content and increasing investment in fingertip cities of Shenzhen.

Profit Forecast: we expect the company's EPS for 17-18-19 to be 0.04 pound 0.04 pound 0.05 yuan, and the current share price corresponding to the corresponding PE for the same period is 231 times higher than that of the same period. Although the company's current valuation is relatively high, it continues to be optimistic about the synergy of the company's "channel + content" and is expected to quickly release its performance and maintain its "overweight" rating.

Risk hint. 1) the competition in the industry intensifies; 2) the development speed of the VR industry is not up to expectations.