China TV Media (600088) Semi-annual Report Review: High growth in advertising and film and television technology services continues to be recommended as a subsidiary platform of CCTV
CTV Media achieved revenue in the first half of 20193.
82 ppm, an increase of 17 in ten years.
8%, net profit attributable to mother is 6,356.
850,000 yuan, an increase of 18 in ten years.
1%, net profit after deduction is 5853.
700,000 yuan, an increase of 12 in ten years.
19Q2 achieved operating income1.
73 ppm, a ten-year increase2.
7%, net profit to mother 2778.
280,000 yuan, down 5 every year.
8%, net profit after deduction is 2278.
120,000 yuan, a decrease of 17 per year.
In terms of cash flow, the net cash flow from operating activities in the first half of 2019 was -7352.
970,000 yuan, a decrease of 9480 compared with the same period last year.
The amount of RMB 260,000 is essentially a decrease in the net cash flow from advertising business operations as compared to the same period last year and the company’s cash paid to employees may have increased compared to the same period last year.
In terms of business, the company’s advertising business achieved revenue in the first half of 20191.
930,000 yuan, an increase of 32 in ten years.
5%, gross margin of 21.
0%; film and television business achieved revenue 6152.
10,000 yuan, an increase of 7 in ten years.
6%; revenue from tourism business1.
26 ppm, a ten-year increase4.
The company’s advertising business performed well in the first half of 19 years, with revenue growing for many years.
5%, mainly due to: 1) The company ‘s subsidiary, Shanghai CTV International Advertising, contracted the advertising business of the “Chinese Poetry Conference” (fourth season); 2) relying on the high-quality columns of science and education channels, and continued to implement channel advertising management on sales ideas ””Brand strategy”, vigorously promote the brand resources of “CCTV Great Health Platform”, clarify sales responsibilities, implement a differentiated incentive mechanism, and give full play to the initiative of the sales team; 3) New media business is actively promoted, and new media content operations are closely linked to company channel advertising marketingCombined.
The 19H1 company also showed high growth in film and television technology services, and its subsidiary, CTV North, achieved revenue of 4,239.
380,000 yuan, an increase of 27 in ten years.
1%, net profit 198.
60,000 yuan, an annual increase of 31.
CTV North is the first domestic enterprise to enter the field of high-definition television production. In 18 years, it has upgraded its technology and completed the 4K ultra-high-definition film and television 深圳桑拿按摩 program post-production base.
The State Administration of Radio, Film and Television issued a document to strengthen ultra-high-definition, encourage the gradual melting of media mergers and acquisitions, and reform of mixed ownership, and CTV Media has again obtained the relevant policy engine.
The State Administration of Radio, Film and Television released the “Opinions on Promoting the Growth and Development of the Broadcasting, Television and Network Audiovisual Industry” in August, which once again strengthened and accelerated the construction of HDTV and 4K / 8K Ultra HD. At the same time, it specifically proposed to support listed companies to become stronger and larger, and encourage listed companies to play a roleActively and steadily carry out cross-regional, cross-industry and cross-ownership mergers and acquisitions and reorganizations. Encourage radio and television and online audiovisual flagship companies to initiate the establishment of equity investment funds and actively participate in market mergers and acquisitions.
CCTV Media is an affiliated platform of CCTV, which is affiliated with CCTV North, which is engaged in the ultra-high-definition business, and has established a media financing fund that fits the policy direction.
Investment suggestion: CTV Media drives development with film, television, advertising, and tourism troikas. The company’s performance rebounded in 18 years, and the advertising business continued to pick up in the first half of 19, with revenue growth of more than 30%.
We estimate that the company’s net profit attributable to its parent for 2019-2021 will be 1.5.7 billion / 1.
8.9 billion / 2.
170,000 yuan, an increase of 36 in ten years.
9% / 20.
6% / 14.
7%, corresponding to PE of 34.
3x / 28.
4x / 24.
8x, following the arbitration compensation with the Alliance Power Company, the integration of special resources advertising and film and television services under the background of the development of the media to enhance the profit margins.
Since this year, we have continued to improve the melting of media, which is the key development direction. As a media listing platform that CCTV belongs to, CCTV is expected to have another development opportunity under the wave of media integration and maintain a buy rating.
Risk reminders: The company’s resources with shareholders fail to meet expectations, the impact of macroeconomics on advertising, the impact of new media and new technology competition, and the production and sales of film and television projects fall short of expectations.