Oriental Pearl (600637) Interim Review: Progress in China-Taiwan under pressure from main business

Oriental Pearl (600637) Interim Review: Progress in China-Taiwan under pressure from main business

Under the pressure of the main business, maintaining the overweight rating of the company in H1 2019 will achieve revenue / net profit attributable to mothers / net profit attributable to non-attributions57.

06/10.

71/7.

24 ppm, at least -5.

34% /-13.

62% / + 6.

18%, the overall gross profit margin is 25%.

The company’s main business is still showing growth pressure. We lower our profit forecast and expect a net profit of 18-20.

06/17.

74/18.

220,000 yuan, EPS0.

53/0.

52/0.

53 yuan.

Combining PE and PB beyond the law to estimate the company, giving the company an industry average PB level in 2019 (1.

37X) and below the industry average PE level (18X), the adjusted target price is 9.

54-12.

07 yuan, maintaining the overweight level.

Industry contraction + business adjustments, growth in performance reports of multi-business groups under pressure, and pressure on multiple business groups of the company.

Among them, the video shopping business group was restricted by the shrinking of the overall market size, and the revenue growth increased by 0.

2%; cultural tourism consumer business group affected by the decline in property sales, revenue continued to decline 10.

1%; Media Network Business Group Revenue 7.

68%, IPTV / OTT TV business users continued to grow, cable TV business grew slightly by 2% each year; the distribution business in the film and television entertainment business group achieved a breakthrough, and revenue increased.

The number of users has grown steadily. The fully licensed multi-channel reach user company BesTV integrated channel platform serves 51.24 million IPTV business users, has 34.26 million OTT business users, 60 million digital TV users, 16.5 million interactive on-demand users, 12.5 million shopping members, and the first half of the year.The Oriental Pearl Tower brings together more than 4 million users.

The company has scarce licenses in the field of media audiovisual, including IPTV, OTT, etc., and has complete user access channels such as IPTV, Internet TV, cable TV, and mobile terminals. Currently, it is committed to bringing TV media, video shopping, and offline through OPG cloud construction.The user data of the tour is integrated to realize multi-scenarios, full interconnection, and intelligent recommendation service of “thousands of people and thousands of faces”, and give full play to the advantages of existing users.

The strength of OPG cloud construction leverages channel advantages, and it is expected to build the company’s moat company to use “OPG Cloud” as a smart operating platform to realize the company’s strategy and face the future explosive growth space, as an “accelerator” of the company’s strategy and a “foothold” for smart operations.

At present, the company has preliminarily opened up 18 major business formats such as internal film and television, games, new media, shopping, and tourism, and has realized the development of the entire IP industry chain. The user center has gathered 60 million user data to form 16 categories with 500+ user portrait tags.

On the basis of strengthening hybrid cloud construction in the first half of 2019, OPG Cloud will continue to strengthen the capacity building of China and Taiwan. Based on the cloud background, the data center, the content center, and the video business center will work together to help it ensure secure broadcast.As expected, the content production capacity will be improved, the implementation of artificial intelligence and AI technology will be enhanced, and the intelligent operation capability will be improved.

无锡桑拿网 The cultural leader is solid overall, with limited business pressure growth. Maintaining an overweight rating As a state-owned enterprise cultural leader, the company has a solid position and a good user base. However, affected by industry and business adjustments, the company’s main business is under pressure from growth.

We revise down the company’s profit forecast and expect net profit for 2019-2021 to be 18.

06/17.

74/18.

2.2 billion (previous average 19).

67/19.

04/18.

69, down by 8.

2% / 6.

8% / 2.5%), EPS is 0.

53/0.

52/0.

53 yuan.

We estimate the company by combining PE and PB beyond the law, giving the company a 19-year industry average PB level (1.

37X) and below the industry average PE level (18X), the adjusted target price is 9.

54-12.

07 yuan, maintaining the overweight level.

Risk Warning: The revenue and profit growth rate of the video shopping business exceeded expectations, and the film and television industry adjusted.