Events:
The company disclosed its semi-annual report for 2017. during the reporting period, the company achieved operating income of 3.896 billion yuan, an increase of 63.17% over the same period last year, net profit of 380 million yuan, down 9.38% from the same period last year, and earnings per share of 0.10 yuan.
Comments:
Increase capital and thicken performance. During the reporting period, the main reason for the increase in net cash flow from the company's operating income and operating activities is that the company increased its capital to Jiangsu Cable Network Development Co., Ltd., realized its actual control and consolidated statements.
The basic user retention work has achieved remarkable results, and the terminal sales have developed steadily. During the reporting period, the work of guaranteed users achieved remarkable results, the user turnover rate decreased, and the number of lost users decreased significantly. High-definition interactive terminals continued to promote, the total number of interactive terminals in Jiangsu Province reached 5.5004 million in the first half of the year, and the total number of high-definition interactive terminals reached 4.5954 million. Broadband users are developing rapidly, with 2.0241 million effective broadband users in the province in the first half of the year.
Adhere to innovation-driven, and constantly enhance the vitality of development. During the reporting period, the Technology Research Institute kept an eye on the forefront, conducted in-depth research on major and hot issues related to the development of the industry and the company, and made new achievements in intelligent terminal operating system (TVOS), fiber-to-the-home technology standards, gigabit coaxial access technology (HINOC), etc., consolidating the company's technological leadership in the industry. At the same time, we should use technological innovation to promote industry innovation and cultivate profit growth points. Continue to optimize the interactive TV interface to better match user needs and preferences, the user experience has been significantly improved, and the subscription rate of cloud media business has exceeded 10%.
Fully implement the "focus on innovation" strategy, not rating: the company's annual net profit in 2017-18-19 is expected to be 430 million yuan, 580 million yuan and 870 million yuan respectively. The corresponding price-to-earnings ratio is 68-50-33. Under the trend of the "Internet +" era, the integration of the Internet and entertainment industry is accelerating. In view of the opportunities brought by the Internet to the entertainment industry and the synergy of various businesses, it is given an overweight rating.
Risk tips: the risk of intensified market competition, the risk of transmission security, and the risk of price policy change.