People’s Daily Online (603000): Release of Three-year Plan for In-depth Integration Development (Outline): Content-based platform has a lot of room for value realization

People’s Daily Online (603000): Release of “Three-year Plan for In-depth Integration Development (Outline)”: Content-based platform has a lot of room for value realization

Key points for investment On the evening of July 25, the company released the “Three-year Plan for Deep Integration Development (Outline)”, which put forward the guiding ideology, development strategy, planning goals, and key tasks of the People’s Daily Online construction. 深圳桑拿网 We believe the following:The essence of the People’s Network “Party Network” highlights: On January 25, 2019, General Secretary Xi Jinping pointed to the Political Bureau of the Central Committee of the Communist Party of China to the People’s Daily for twelve collective studies on antiques in the “all-media era and media integration and development”.Accelerate the integration and development of media, so that mainstream media have strong communication, guidance, influence, and credibility “,” the competent authorities should gradually do a good job of regulatory responsibilities, strengthen the management of emerging media in accordance with the law “,” most party committees and governments must follow policies,In terms of funding and talents, we will increase support for media integration and development. ”

This “Planning” is the implementation of the general secretary’s speech on January 25th.

The rapid development of the mobile Internet has spawned a large number of new media platforms. While the information is obtained more quickly, it has led to the disadvantages of insufficient information review and supervision. In the era of information explosion, the mainstream media ‘s guiding role in official media has become prominent.

As a party media, the people’s network, its political value, dissemination value, brand value, platform value, capital value will be further highlighted.

Content-oriented, large platform value realization space: relying on policy sensitivity, talents and other advantages, the company’s constantly changing original capabilities in opinion review, in-depth investigation, authoritative interpretation, policy advice, will continue to consolidate its main key news websites in the future”Faucet” category to become the provider of the highest quality original content.

Content-based, multi-channel realization of platform value: ① Content risk control: One of the goals of this Plan is to continuously strengthen the choice of Internet content risk control “leading”.

The company intends to take a stake in People’s Zhongke (Shandong) Intelligent Technology Co., Ltd., which will closely integrate the artificial intelligence technology of the Institute of Automation of the Chinese Academy of Sciences and the content risk control capability of People’s Network, focusing on providing technology for content security management and information security management on the Internet spaceservice.

According to the news from People’s Daily on July 24, People’s Daily has released 67 “Internet Content Risk Controller (Elementary) Certificates” to the society. The company has conducted preliminary explorations on standard setting and personnel training. In the future, it will further leverage the advantages of the party media.The Internet community provides consulting services for content risk control.

② Content operators and Jufa: People’s Network connects horizontally with various entities such as governments, enterprises, social groups, academic institutions, etc., and initially connects politicians from around the world with the general public, social accounts (Weibo, WeChat public account, Douyin, etc.)Daily coverage of more than 2.

With 800 million person-times, the value of communication is outstanding.

The company’s future superior communication power can achieve scale of revenue and profit scale: including providing creative creators / creative institutions with creative guidance, level certification, promotion operations and market operation services; for content producers, distributors,Developers provide services such as content distribution and derivative copyright transactions, operation training, IP incubation, creative marketing, content e-commerce, and advertising agencies.

In Q1 2019, the company’s revenue maintained a steady growth, with cross-narrowing alternately: in Q1 2019, the company achieved operating income3.

1.3 billion (+17.

20%), net profit attributable to mother -2,336.

250,000 yuan (-5,787 in the same period last year.

The revenue growth was mainly due to the increase in revenue of its subsidiaries, People’s Video Culture Co., Ltd. and People’s Health Network Co., Ltd.

Investment suggestion: People’s Network, as the official media, plays an important role in propaganda and ideological work. We are optimistic about the company’s use of content to establish a network, through content risk control, operation and aggregation of multi-channel monetization space.

We maintain the company’s annual revenue from 2019 to 2021.

30, 0.

41 and 0.

The profit forecast of 55 yuan, the closing price corresponding to PE on July 26 is 57 in turn.

9x, 42.

2x, 31.

1x, maintain the company’s overweight-A recommendation.

Risk Warning: Content Expansion Is Less Than Expected, Policies Are Less Than Expected, Macro Economic Growth Downward Risk